Not upheld: Account administration errors complaint against Atom Bank PLC

Decision detail

Summary

Mr B complained that Atom Bank PLC applied an incorrect interest rate when he closed his Instant Saver Reward account, receiving a lower withdrawal rate instead of a higher reward rate. The account terms and conditions explicitly stated that the withdrawal rate would apply when an account was closed during a monthly interest period. The ombudsman found that Mr B had voluntarily agreed to these terms when opening the account and that Atom correctly applied the withdrawal rate in accordance with the contract. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that the account terms and conditions formed a binding financial contract that Mr B voluntarily agreed to when opening the account. The terms clearly and unambiguously stated that the withdrawal interest rate would be applied when the account was closed. Since Mr B did close his account, Atom correctly applied the withdrawal rate in accordance with the contractual terms. While Mr B argued the terms were unreasonable, the ombudsman noted that the FOS cannot influence contract terms as it is a complaint resolution service, not a regulator.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website