Not upheld: Other regulated complaint complaint against ALLICA BANK LIMITED

Decision detail

Summary

N, a limited company represented by director Mr W, complained to Allica Bank Limited about excessive costs and delays in completing a commercial property re-mortgage that was applied for in April 2023 and completed in September 2023. The complaints included objections to mandatory ABI member insurance, valuation fees, arrangement fees, broker commission, legal costs, and lease modification costs, as well as allegations of delays caused by Allica and its solicitors. The ombudsman found that all terms, fees, and requirements had been clearly communicated to N's directors by early May 2023, that N's directors chose to proceed with full knowledge of the costs, and that delays were caused by N's failure to promptly provide required documents rather than by Allica's actions. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that Allica, as a commercial lender, was entitled to set its lending criteria including the requirement for ABI member insurance. All fees, costs, and requirements were clearly communicated to N's directors through the mortgage offers and legal pack by early May 2023, allowing them to make an informed decision to proceed or seek alternative financing. The delays to completion were not caused by Allica or its solicitors but rather by N's failure to promptly provide required documents, particularly regarding insurance compliance which had been required since May 2023 but was still being queried in September 2023.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website