Not upheld: Account administration errors complaint against Gatehouse Bank Plc

Decision detail

Summary

Miss A complained that Gatehouse Bank failed to notify her of incorrect profit information on a Regular Saver account, which stated she would receive £195.50 but actually paid £112.06 (a difference of £83.44). The bank did not inform her of the error until 16 March 2025, just before the account matured on 21 March 2025, and also failed to respond promptly to her initial inquiry. Gatehouse apologised and offered £130 compensation (£100 for loss of expectation, £30 for poor service), but Miss A sought reimbursement of the full £83.44 difference. The ombudsman determined the complaint was not upheld, finding that the £130 compensation fairly addresses Miss A's loss and that it would not be fair to require the bank to honour the incorrectly stated return.

The Ombudsman's reasoning

The ombudsman acknowledged Gatehouse's mistakes in providing incorrect profit information but determined that the bank's compensation offer of £130 fairly addresses Miss A's loss. The ombudsman found that while there was a significant delay in informing Miss A of the correct return, it would not be fair to require Gatehouse to honour the incorrectly stated return of £195.50, as no comparable account would have provided that rate. The compensation of £100 for loss of expectation exceeds Miss A's quantified loss of £83.44, and the additional £30 covers the poor service and inconvenience. The ombudsman noted that the delay, while poor service, fell within the eight-week complaint response timescale and did not materially inconvenience Miss A to the extent that would justify requiring the bank to pay the incorrect return.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website