Not upheld: ISA / savings administration complaint against United Trust Bank Limited

Decision detail

Summary

Mrs A complained that United Trust Bank failed to make clear the early withdrawal fee on her fixed rate cash ISA and requested penalty-free or reduced penalty access. After interest rates rose, Mrs A sought to transfer her funds but discovered a substantial early withdrawal penalty. The ombudsman examined the documentation provided at the time of the ISA opening and found that the penalty was clearly disclosed in the product information leaflet and terms and conditions, which Mrs A had agreed to. The ombudsman concluded that consumers are responsible for reviewing product terms and that UTB was entitled to enforce the penalty as stated, and therefore did not uphold the complaint.

The Ombudsman's reasoning

The ombudsman concluded that UTB had clearly disclosed the early withdrawal penalty in its documentation and that Mrs A, as a consumer, was responsible for checking the suitability of products and reviewing the terms and conditions. The firm was entitled to charge the penalty as detailed in its terms and conditions, and the ombudsman could not reasonably ask UTB to waive or reduce the penalty. The ombudsman noted that while the penalty was high, UTB was not required to apply the same penalties as other businesses.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website