You did not meet their criteria for lending so they declined you. Exactly how has this caused you financial loss? I could look to place a £100 bet on a horse tomorrow at 10,000/1 but if something stopped me from placing that bet would that make the something be responsible for financial loss.....of course not.
I would assume that you told the lenders what value you wished to drop the mortgage down to and if they still declined you then they obviously still felt that this was below your potential affordability. While i will never say that a lender is totally blameless your own information has been scant and only offered when needed. Your original post said you had been fast tracked for £80k more than you needed but you did not mention that your income was now less than the lender was aware of so of course they would not offer this figure. I can only assume that if you were offered £80k above what you needed then your income has not dropped slightly but very significantly. I would hazard a guess that you are a sole trader or director of a company that has shown either declining profits for the last few years or even zero profit or loss and that is why the lender has reduced your potential borrowing so much. You are claiming fraud from the lender but purposefully declaring a certain income to obtaina loan of a certain value when you know that your income is lower than this declared figure is also fraud.
If certain application processes and protocols have not been followed then yes this is a matter for complaint but it will be most likely dealt with through an inhouse enquiry. It will not give you a mortgage that you still cannot afford to take on. You did not lose any money through this process, you did not stand to make any money in this process for you to lose. I still can't ubnderstand why you would be at financial loss?
So far as complaints process. A lender has has 5 days to respond and acknowledge a complaint. They then have a further 7 weeks to send back a final response or proposed resolution to this complaint. If this final response or resolution is not forthcoming or if it is not a satisfactory resolution then you are well within your rights to then approach the ombudsman...obviously setting out and evidencing that you have followed the correct complaints procedure. From this point the ombudsman can then act in its own accord to get to the bottom of the matter. If you cannot evidence that you have followed the correct procedure for complaints then the ombudsman will submit the complaint on your behalf again and then the lender will have a further 8 weeks for resolution or final response.
I am still not fully aware of what has happened and in what order but I do agree that the lender should be able to provide a signed disclosure for the date that you sat with the adviser and certain processes and orders need to be followed. if they were not then this is a matter for the ombudsman to follow and if neccessary then breaches reported first to the bank itself to rectify operating procedures and then onto the FSA if this is proven to be a network wide problem.....which i very much doubt it would be.
As I said before, i doubt very much if your threats of the ICO will go any further as there has been no breach or mis-use of data. I doubt very much if the FSA will have any interest as this is an individual case and unless there are numberous other cases against the same branch then it will just be filed away until such a time as numerous cases can be complied. I think your only option is to speak to the ombudsman about this but if you have not managed to do this despite your frustrations for 3 years then i think that you must have your own concerns of how it may play out....but if you have genuinely been waiting nearly 3 years for am final response then stop waiting and contact the FOS snd get them to look at the case.
This is not a forum for sour grapes, just for genuine problems and yours will most likely now be resolved by comtactiong the Financial Ombudsmans Service