Not upheld: Account closure without notice complaint against The Mansfield Building Society

Decision detail

Summary

Mr P complained that The Mansfield Building Society stopped accepting payments into his savings account with a guaranteed interest rate and forced him to move his money to an account paying less interest. The Mansfield had withdrawn the account due to changed market conditions, as it was paying more than double the average rate to other savers. The ombudsman found that The Mansfield acted in line with the account terms and conditions, provided appropriate notice (60 days), and offered fair alternatives. The complaint was not upheld as the firm had not acted unfairly or unreasonably in the circumstances.

The Ombudsman's reasoning

The ombudsman found that The Mansfield acted in line with the account terms and conditions when withdrawing the account. The firm was entitled to make this decision and took steps to implement it fairly by introducing a new competitive account and doubling the notice period from 30 to 60 days, giving Mr P adequate time to consider alternatives. The ombudsman noted that FOS looks at fairness and reasonableness rather than legal liability, and found no unfair or unreasonable treatment.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website