Not upheld: Account administration errors complaint against Furness Building Society

Decision detail

Summary

Mr T complained that Furness Building Society charged him £20 for a CHAPS transfer on 2 January 2024 without his knowledge and that he lost one day's interest as a result. FBS stated it had explained the fee during the telephone call and Mr T had agreed to it. The ombudsman listened to the call recording and found that FBS had explained the £20 fee twice and Mr T had confirmed understanding. The ombudsman concluded that Mr T agreed to proceed with the transfer knowing the fee would apply and would have understood the funds would leave his account shortly after, thus not accruing further interest. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman listened to the full call recording and found that FBS explained the £20 CHAPS transfer fee twice, with Mr T confirming he understood. The ombudsman was satisfied that Mr T agreed to proceed with the transfer knowing the fee would apply and that he would have understood the funds would leave his account shortly after agreeing to the transfer, thus not accruing further interest. The ombudsman found the fee was appropriately documented in FBS's terms and conditions and that CHAPS was an appropriate method for such a large transfer.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website