Not upheld: inadequate compensation for trouble and inconvenience; alleged mistreatment and avoidance of responsibility complaint against National Westminster Bank Public Limited Company (NatWest/Coutts)

Decision detail

Summary

X complained that NatWest's £500 compensation for trouble and inconvenience was insufficient following an error in transferring his investment portfolio to Rathbones, which resulted in unintended capital gains and a CGT liability. NatWest had already upheld the complaint, paid £6,647.79 for the CGT liability, reimbursed £4,740 in accountant fees, and paid £500 for trouble and inconvenience. X sought £1,500 to £5,000 in additional compensation, citing NatWest's initial avoidance of responsibility, rudeness, and the significant effort required by Rathbones to obtain resolution. The ombudsman found that X's grievances primarily concerned Rathbones' experiences rather than his own, that NatWest had fairly resolved the matter, and that the £500 payment was reasonable compensation within FOS guidance.

The Ombudsman's reasoning

The ombudsman found that while X experienced trouble and inconvenience, the majority of his complaints related to Rathbones' experiences rather than his own direct experiences. The ombudsman noted that NatWest had conceded the complaint, redressed all financial losses, and made a fair apology. The £500 award fell within the FOS guidance range of £300-£750 for matters causing considerable distress over many weeks or months. The ombudsman clarified that FOS awards are compensatory, not punitive, and that FOS is not the industry regulator and cannot impose deterrent measures or assess firm-wide conduct.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website