Upheld: ISA / savings administration complaint against Cambridge Building Society
Financial Ombudsman decision DRN-4154571 of 2023-10-04T00:00:00+00:00. ISA / savings administration complaint against Cambridge Building Society. Outcome: Upheld.
Decision detail
| Reference | DRN-4154571 |
|---|---|
| Decision date | 2023-10-04T00:00:00+00:00 |
| Firm | Cambridge Building Society |
| Product | Savings / ISA |
| Claim type | ISA / savings administration |
| Outcome | Upheld |
| Remedy | Cambridge Building Society to pay Ms S total compensation of £100, comprising: £75 for distress and inconvenience caused by handling of the transfer request, and £25 to cover investment opportunity loss and any tax liability from funds held outside ISA wrapper. CBS has already paid £50, so directed to pay further £50. |
Summary
Ms S complained about Cambridge Building Society's handling of her ISA transfer following account closure. CBS incorrectly rejected an initial transfer request in May 2022, and the transfer was not completed until end of July 2022, preventing Ms S from investing her funds (just over £100) with her new provider for approximately two months. CBS initially offered £25 compensation, increased to £50, but Ms S sought further compensation for loss of investment opportunity and distress. The ombudsman upheld the complaint and directed CBS to pay total compensation of £100 (£75 for distress and inconvenience, £25 for investment loss), with £50 already paid leaving £50 outstanding.
The Ombudsman's reasoning
CBS accepted it incorrectly rejected the initial transfer request which caused delays lasting from mid-May to end of July 2022. The ombudsman found that while the amount transferred was modest (just over £100), Ms S suffered both distress and inconvenience from having to chase the matter, and a quantifiable loss of investment opportunity. The ombudsman considered that compensation should be relative to the amount involved and that a pragmatic approach was needed given the complexity of calculating precise investment loss and the fact Ms S was transferring to another provider. The ombudsman rejected segmenting different issues and instead reached a single fair figure for all distress and inconvenience suffered.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Cambridge Building Society, all decisions | 20 | 30% |
| ISA / savings administration, all decisions | 1,932 | 27% |
| Savings / ISA, all decisions | 7,689 | 22% |
Source
Read the original decision on the Financial Ombudsman Service website