FCA-Regulated Finance — Free Dispute Resolution up to £415,000
Financial Ombudsman Service for Faulty Goods on Finance — UK Guide
If you bought goods on finance — PCP, HP, or a credit agreement — and the finance company has refused to resolve your faulty goods dispute, the Financial Ombudsman Service (FOS) is your most powerful escalation route. The FOS is free to use, can award up to £415,000, and its decisions are binding on the finance company. You do not need a solicitor.
What Is the Financial Ombudsman Service and When Does It Apply to Faulty Goods?
The Financial Ombudsman Service (FOS) is the UK's statutory dispute resolution service for financial services complaints. It has jurisdiction over any complaint against an FCA-regulated financial business — including banks, credit card companies, and finance companies that provide PCP, HP, or personal loan agreements.
When you buy goods on finance, your Consumer Rights Act 2015 claim is directed at the finance company (not the dealer or retailer). If the finance company refuses to resolve your claim, you cannot use a general consumer ADR scheme — you must use the FOS.
The FOS applies to: PCP (Personal Contract Purchase), HP (Hire Purchase), personal loans used to fund a purchase (in some cases), and any other regulated credit agreement.
How Do You File a Financial Ombudsman Service Complaint for Faulty Goods?
Complain to the finance company first
Write a formal complaint to the finance company citing your CRA 2015 rights. Keep a copy. This is mandatory — the FOS will ask whether you have exhausted the finance company's internal process.
Wait for the final response or 8 weeks
The FOS requires you to wait either until the finance company issues a 'final response' letter, or until 8 weeks have passed since your complaint without a final response. You have 6 months from the date of the final response to refer to the FOS.
File at the FOS
File your complaint at financial-ombudsman.org.uk. You will need: details of the finance company, a summary of your complaint, all correspondence with the finance company, your evidence pack (fault documentation, repair records, proof of purchase), and the finance company's final response letter (if issued).
The FOS investigates
The FOS contacts the finance company for their response. Both sides can submit evidence. An adjudicator makes an initial recommendation. If either party rejects it, the case can be referred to an FOS Ombudsman for a final binding decision.
Accept or reject the decision
If you accept the FOS decision, it is binding on the finance company. If you reject it, you remain free to pursue through the courts. Accepting the FOS decision is final — you cannot later go to court for the same matter.
Frequently Asked Questions
Can I use the Financial Ombudsman Service for a faulty goods dispute?
Yes — if the goods were bought on finance (PCP, HP, or credit agreement) from an FCA-regulated provider. The FOS handles disputes between consumers and FCA-regulated businesses. If the finance company refuses your claim or fails to respond within 8 weeks, escalate to the FOS for free.
When can I refer a complaint to the FOS?
After the finance company issues a final response letter, or after 8 weeks without a final response. You have 6 months from the date of the final response to refer to the FOS.
What can the FOS award for a faulty goods dispute?
Financial compensation up to £415,000, unwinding of the finance agreement, refund, replacement, and compensation for distress and inconvenience caused by the company's complaint handling.
Is the FOS decision binding on the finance company?
Yes — if you accept the decision. If you accept it, it is legally binding on the finance company. If you reject it, you remain free to pursue through the courts.
How long does a FOS complaint take?
The FOS aims to resolve straightforward cases within 3–6 months and complex cases within 12 months. Document ongoing consequential losses during the process — they can be included in your claim.
Related guides in this network:
Faulty Goods Fight-Back System
FOS Submission Toolkit — Finance Disputes
The Fight-Back System includes the finance company formal complaint letter, the FOS submission guide, and the complete finance dispute escalation sequence from initial complaint to FOS decision.
Get the Fight-Back System — £27One-time payment. Instant PDF download.