Not upheld: Service failures generally complaint against Wealthify Limited

Decision detail

Summary

Mr Y complained to Wealthify about being incorrectly told he was ineligible for a £50 cashback promotion on 1st August 2024. After following up, the error was corrected and Wealthify offered £50 cashback plus £50 compensation in their final response dated 15th August, committing to pay within 15 working days. The cashback was paid on 28th August but the compensation was not paid until 5th October, four weeks late. Mr Y referred the complaint to FOS, unhappy with how Wealthify handled it. The ombudsman found the initial error was a one-off mistake resolved fairly and that the £50 compensation offered was reasonable, though paid late. The ombudsman did not uphold the complaint as complaint handling falls outside FOS jurisdiction.

The Ombudsman's reasoning

The ombudsman found that while Wealthify made an initial error, it was rectified promptly and a comprehensive apology was provided. The cashback was paid within a reasonable timeframe. Although the £50 compensation was paid 4 weeks late, the ombudsman determined that Wealthify were not required to offer compensation in the first place for the initial error, as it was a one-off mistake resolved fairly. Complaint handling itself falls outside FOS jurisdiction under DISP rules. The ombudsman acknowledged Mr Y's personal circumstances made the delay more impactful for him but did not consider this warranted increasing the compensation amount.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website