Not upheld: Service failures generally complaint against ALLICA BANK LIMITED

Decision detail

Summary

Mr C complained that Allica Bank failed to provide him with the best interest rate when his 12-month savings account matured and was automatically reinvested. Allica had emailed him stating it would ensure he received the best rate available, but the reinvested account retained the same 4.10% rate. Mr C argued the guarantee was misleading and that Allica should have proactively explored higher rates or preferential options for returning customers. The ombudsman found the email was clear that the rate would remain the same or increase if a higher rate was available, and since 4.10% was the highest rate available at reinvestment, Allica had fulfilled its obligation. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that Allica's email clearly stated the interest rate would either remain the same or be higher if a higher rate was available. The ombudsman rejected Mr C's argument that the email created an expectation that Allica would explore alternative options or preferential rates for returning customers. Since 4.10% was the highest rate available at the time, Allica provided the best rate available and did not breach its obligation.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website