Not upheld: interest rate administration and notification complaint against Buckinghamshire Building Society

Decision detail

Summary

G Ltd, represented by directors Mr H and Ms M, complained to the FOS about Buckinghamshire Building Society's administration of a Business Saver Base Rate Tracker account. The complaint arose when the interest rate decreased from 3.80% to 3.05% in June 2025 without notification from BBS. The complainants argued that BBS should have notified them of the rate change and that the terms allowing unnotified variations breached the Consumer Duty. The ombudsman found that the account terms were sufficiently clear that the rate would track 1.20% below Base Rate without notification, and that rate variations were automatic applications of the agreed tracker mechanism rather than discretionary changes. The ombudsman rejected the complaint, finding BBS had acted fairly and that the complainants had adequate notice of how the account would operate before opening it.

The Ombudsman's reasoning

The ombudsman found the account terms were sufficiently clear about how the tracker mechanism would operate and that BBS would not notify customers of rate variations tied to Base Rate changes. The rate variations were automatic applications of the agreed tracker formula, not discretionary variations requiring notification under regulatory rules. The ombudsman rejected arguments that BBS had breached the Consumer Duty, noting that the information provided was clear and G did not experience a bad outcome. The ombudsman also rejected comparisons with other providers, stating there is no requirement for BBS to match competitors' rates or notification practices.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website