Not upheld: ISA / savings administration complaint against OakNorth Bank plc

Decision detail

Summary

Mr S complained that OakNorth Bank made errors in transferring his ISA and provided poor service when attempting to remedy them. On 6 October 2023, Mr S requested an ISA transfer from his former provider to OakNorth. When the ISA matured on 1 November, Mr S contacted OakNorth to clarify that he only wanted £85,000 transferred, not the full amount. OakNorth's adviser cancelled the transfer without informing Mr S, but Mr S then requested the full transfer proceed as his former ISA had already been cancelled. OakNorth completed the full transfer later that day. The firm paid £100 compensation and offered to backdate the ISA to October. Mr S complained about the earlier maturity date and alleged aggressive questioning during a complaint call. The ombudsman found that Mr S had selected the full transfer option on the application form and that OakNorth's compensation and handling of the complaint were fair and reasonable, so the complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that the transfer form clearly presented two options and Mr S selected the full transfer option with an estimated figure of £85,000. The form made clear that selecting the partial transfer option was required if only part of the funds were to be transferred. Although OakNorth's adviser cancelled the transfer without informing Mr S first (which was an error), the transaction had not yet completed when Mr S called on 6 November, so it could have been handled as he intended. OakNorth took appropriate action by contacting the former provider via their dedicated email service and completed the full transfer later that day. The ombudsman found the £100 compensation reasonable for the service error and misinformation. Regarding the 17 November call, the ombudsman found OakNorth's questioning about financial loss was appropriate as proper documentary proof would be needed to substantiate any claim. The backdating of the ISA was a reasonable goodwill gesture that actually benefited Mr S by providing additional interest and an earlier maturity date.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website