Not upheld: ISA / savings administration complaint against Castle Trust Capital PLC

Decision detail

Summary

Mrs M opened a fixed term ISA with CTB on 12 May 2025 and requested a transfer of an existing ISA from another provider. The transferred funds were credited on 5 June 2025, creating a 24-day gap during which no interest accrued, resulting in a loss of over £200. Mrs M complained that the account commencement date should be 5 June 2025 (the funding date) rather than 12 May 2025 (the opening date), and that CTB's documentation was unclear. CTB investigated and did not uphold the complaint, citing their clear terms and conditions. The FOS investigator and ombudsman both found that CTB's policy was clearly stated in their documentation, which Mrs M had access to before opening the account online, and therefore did not uphold the complaint.

The Ombudsman's reasoning

The ombudsman found that CTB's terms and conditions clearly set out the policy that interest begins when funds are received, while the maturity date is linked to the account opening date. Since Mrs M opened the account online, she had access to all relevant information before committing to the product. The ombudsman considered it reasonable for customers to research products prior to proceeding, especially when depositing significant funds. While sympathising with Mrs M's position, the ombudsman found no evidence that Mrs M raised queries about the policy before proceeding with the account opening and transfer. The ombudsman also noted that terms and conditions form the basis of financial contracts and that the FOS cannot influence them as it is a complaint handler, not the regulator.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website