have you bought a truck with a warranty or on credit? Ever had an argument with the finance house over the terms? Look no further than the Financial Ombudsman Services (FOS), which aims to help consumers and small businesses with a turnover under £1 million.

The FOS independently considers - free of charge - complaints about financial products. It does not give advice or make the rules, and nor will it fine companies. Instead, it only arbitrates.

It is paid for through a levy on the finance businesses and case fees. No fees are charged to those that complain.

The FOS has the power to deal with matters such as banking, insurance, pensions, savings, investments, credit cards, loans, hire purchase, stocks and shares, as well as financial advice.

From April 6, the FOS has been able to look at complaints that involve a consumer credit transaction. That means the FOS now covers businesses whose main activity is lending and hiring; other activities such as debt collection and credit brokerage; and those where credit is a secondary activity, such as retailers. These businesses are also now required to have in place an in-house complaints handling procedure, just as other financial products companies do.

The FOS requires the management of the financial services company to have a policy in place to allow consistent and fair treatment of all complaints, as well as offering and honouring redress should a complaint be upheld and the redress be accepted. The redress can be financial, or it could be an offer to correct a credit record or as simple as an apology.

The FOS will only consider a case once the business concerned has had a chance to deal with the complaint being made. However, if a resolution is not forthcoming, the complainant should write.

If the matter cannot be resolved amicably, the complainant may make a formal complaint - there is no need to take legal advice.

But before any complaint can be progressed through the ombudsman, it has to pass various tests such as whether the selling business and product is covered by the FOS; whether the complaint is covered; when the event occurred; and the relationship between complainant and the business.

Time limits are important. If a complaint arises, the complainant should receive a written acknowledgement as soon as possible; the FOS needs to keep the complainant informed of the progress of the complaint and issue a final response within eight weeks of the initial complaint.

The letter needs to tell the complainant that if they do not agree with the decision they can go to the FOS within six months of the date of the final response. Complainants can also lodge a complaint within six years of the event that causes the upset.

The complainant does not have to accept the ruling of the FOS; the company can still decide to pursue a claim through the courts.

However, once the decision has been accepted, it becomes binding on all sides. Precedents are not set - one case will not determine the outcome of subsequent or similar cases.

Most complaints will be resolved within a year. However, a third will be resolved in under three months.

It is also worth noting that the FOS will consider complaints from those who are based overseas. The issue is the location of the selling business, not the country of residence or nationality of the complainant.

In terms of awards, the FOS can order a payment for loss and any pain and suffering, reputational damage as well as distress and inconvenience caused, up to a maximum of £100,000. On rare occasions, costs can be awarded. As said earlier, the decision only becomes binding once the ruling is accepted. And if need be, courts can be involved to enforce the ruling.

www.financial-ombudsman.org.uk