Upheld: unauthorized product arrangement, administrative error, mis-information complaint against TSB Bank plc

Decision detail

Summary

Miss C complained that TSB set up a new contents insurance policy and savings account without her permission during a branch visit on 11 February 2025 when she only requested an address change. TSB's staff cancelled the direct debit on her old policy, which subsequently led to that policy being cancelled by the insurer. The Ombudsman found the new products were likely discussed and agreed by Miss C in branch, but upheld the complaint because TSB made errors: it cancelled the direct debit, incorrectly told Miss C the old policy had been reinstated when only the direct debit was reinstated, and failed to address the unwanted savings account. The Ombudsman ordered TSB to pay £100 compensation and arrange closure of the savings account, finding this reasonable compensation for distress and inconvenience despite no demonstrated financial loss.

The Ombudsman's reasoning

The Ombudsman found that without a recording of the appointment, it was more likely than not that Miss C discussed and agreed to the new policy and savings account with TSB staff support, particularly as she cancelled the new policy the next day without financial loss. However, TSB made errors: it cancelled the direct debit on the old policy (whether by Miss C's action or TSB's advice is unclear), incorrectly told Miss C the policy had been reinstated when only the direct debit was reinstated, and failed to address the unwanted savings account. While Miss C had opportunities to reinstate the direct debit after receiving warning letters, TSB's errors caused loss of expectation and frustration. The £100 compensation offered was reasonable for distress and inconvenience as no financial loss was demonstrated.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website