Not upheld: Account administration errors complaint against Godiva Mortgages Limited

Decision detail

Summary

Mr B1 and Mr B2 complained that Godiva Mortgages Limited failed to notify them when their Buy To Let mortgage's fixed interest rate ended in April 2022, resulting in them paying the higher Standard Variable Rate for several months without realising it. Mr B1 claimed he did not receive notification letters due to postal issues and argued that Godiva should have used alternative contact methods such as email or recorded delivery. Godiva maintained it had sent three letters to the address on file and that this was consistent with its standard notification process. The ombudsman found that Godiva had done enough to notify the customers and was not required to use alternative contact methods, and therefore did not uphold the complaint.

The Ombudsman's reasoning

The ombudsman concluded that Godiva had fulfilled its notification obligations by sending three letters to the address it held for the customers before the interest rate changed. The ombudsman found it reasonable for Godiva to assume the correspondence would be received and that it was not required to use recorded delivery, email, or telephone contact methods. The ombudsman noted that the lack of response to letters did not necessarily indicate non-receipt, particularly in a market where some customers choose not to refix immediately. The ombudsman found no evidence that Godiva was aware of persistent correspondence problems at the address provided.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website