Not upheld: Service failures generally complaint against OakNorth Bank plc

Decision detail

Summary

Mr D complained that OakNorth Bank plc misled him through an advertisement for a fixed rate cash ISA paying 4.5% with monthly interest, as he believed this meant interest would be paid monthly to his nominated account to supplement his income. After depositing £20,000 on 31 March 2025, Mr D discovered on 1 May 2025 that interest was paid to the ISA account itself, not to his nominated account, and that withdrawing it monthly would incur a penalty. OakNorth rejected the complaint, citing the terms and conditions and key features documents which clearly stated interest was paid to the ISA. The ombudsman did not uphold the complaint, finding that the advertisement was not misleading, that the terms and conditions clearly specified where interest would be paid, and that Mr D had electronically confirmed he had read and accepted these terms.

The Ombudsman's reasoning

The ombudsman found that interest is paid monthly to the ISA account as stated in both the terms and conditions and key features documents. The ombudsman concluded that the advertisement was not misleading because it did not promise or suggest that interest could be paid to a nominated account—all such detail is contained in the terms and conditions. The ombudsman noted that Mr D signed to confirm he had read and accepted these terms, and that he had a 14-day cooling off period to review them. The ombudsman rejected the argument that saying 'monthly interest' implies payment to a nominated account, stating that the specific account to which interest is paid is properly specified in the terms and conditions. The ombudsman also noted that OakNorth is not obliged to offer the same product structure as other providers.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website