Not upheld: Account administration errors complaint against Saffron Building Society

Decision detail

Summary

Mrs B complained to Saffron Building Society after discovering an old ISA account still showing £2,137.10 on her records, which she assumed was hers. Saffron had previously closed the account due to an interest rate problem and opened a new identical account with the funds transferred, but failed to clearly communicate this or mark the old account as zero balance. Mrs B experienced delays and confusion, eventually discovering the money had been transferred. Saffron apologized and offered £200 compensation. The ombudsman did not uphold the complaint, finding that while Saffron's service was poor, it had ultimately acted correctly and the compensation was fair.

The Ombudsman's reasoning

The ombudsman acknowledged that Saffron's communication was poor and that Mrs B's confusion was understandable given the old account remained visible without a zero balance notation and without clear notification that the transfer was complete. However, the ombudsman found that Saffron had ultimately acted correctly by opening a new identical account, transferring funds, adjusting interest, and not causing Mrs B financial detriment. The ombudsman concluded that while service could have been smoother, Saffron's admission of mistakes, apology, and explanation, combined with the £200 compensation offer, constituted a fair and reasonable outcome.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website