Upheld: Service failures generally complaint against Market Harborough Building Society
Financial Ombudsman decision DRN-4349995 of 2023-09-18T00:00:00+00:00. Service failures generally complaint against Market Harborough Building Society. Outcome: Upheld.
Decision detail
| Reference | DRN-4349995 |
|---|---|
| Decision date | 2023-09-18T00:00:00+00:00 |
| Firm | Market Harborough Building Society |
| Product | Savings / ISA |
| Claim type | Service failures generally |
| Outcome | Upheld |
| Remedy | MHBS must: (1) Calculate the interest Mr and Mrs W would have earned had their £170,000 been reinvested in Fixed Term Bond 87 at 1.76% from 1 April 2022 to 22 August 2022; (2) Deduct the 0.25% interest actually paid during that period (if paid); (3) Pay Mr W £150 for distress and inconvenience; (4) Pay Mrs W £150 for distress and inconvenience. Payment required within 28 days of acceptance. |
Summary
Mr and Mrs W held a maturing £170,000 fixed rate bond with Market Harborough Building Society and called on 21 March 2022 to reinvest the proceeds in Fixed Term Bond 87 at 1.76% interest. During a guided phone call, they completed an online form with advisor assistance, encountered and corrected an error message, and received confirmation that the transaction was completed. However, the instructions were not properly received by MHBS, and the funds were instead placed in a default account at 0.25% interest. The ombudsman upheld the complaint, finding that Mr and Mrs W had provided valid instructions and should not bear the consequences of MHBS's system failure. MHBS was ordered to pay compensation for lost interest (calculated at 1.76% minus 0.25% from 1 April to 22 August 2022) plus £150 each for distress and inconvenience.
The Ombudsman's reasoning
The ombudsman found that Mr and Mrs W provided a valid instruction during the phone call on 21 March 2022. The call recording clearly showed Mr W describing error messages and screens, with the advisor guiding him through the process and confirming completion. The ombudsman was satisfied that from the customers' perspective, they had successfully submitted their instructions and were entitled to expect execution. Any subsequent failure to receive the instructions was a system issue on MHBS's part, not attributable to any action or inaction by Mr and Mrs W. Therefore, they should not bear the financial consequences of MHBS's failure.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Market Harborough Building Society, all decisions | 26 | 35% |
| Service failures generally, all decisions | 34,193 | 32% |
| Savings / ISA, all decisions | 7,689 | 22% |
Source
Read the original decision on the Financial Ombudsman Service website