Not upheld: administrative error in redemption statement and compensation payment handling complaint against Bank of Scotland plc (Halifax)

Decision detail

Summary

Mr M and Mrs R complained that Halifax provided an incorrect redemption statement with a missing page and wrong total amount. While Halifax acknowledged the error and issued a corrected statement promptly, the complainants were unhappy that Halifax paid £100 compensation into their bank account without discussing it with them first. The ombudsman found Halifax had attempted to contact them on 21 October via SMS and voicemail before making the payment, and that paying into their bank account was fair and reasonable. The ombudsman did not uphold the complaint, finding Halifax's apology, corrected statement, and £100 compensation were appropriate remedies despite the error.

The Ombudsman's reasoning

The ombudsman found that while Halifax made a mistake in both the redemption amount and page numbering, the firm took appropriate corrective action by apologising, issuing a corrected statement promptly, and attempting to contact the complainants before paying compensation. The evidence (SMS and voicemail recording) supported that Halifax tried to contact Mr M and Mrs R on 21 October to discuss the compensation payment. The £100 payment into their bank account was reasonable as it allowed them discretion over its use. The compensation amount was consistent with FOS published guidelines. Although the error was regrettable, no actual financial loss occurred as the complainants queried the statement before relying on it.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website