Upheld: failure to support vulnerable customer; failure to adjust communications; poor handling of mortgage arrears complaint against Bank of Scotland plc

Decision detail

Summary

Mr and Mrs C complained that Bank of Scotland plc failed to adjust how it communicated about their mortgage arrears despite being informed multiple times (2018, 2020, 2023, 2025) that Mr C suffered from mental health issues and that receiving letters, calls and texts about the mortgage caused him severe distress. The mortgage fell into arrears from 2016, reaching approximately £40,000 by 2022 before Mr and Mrs C resumed payments from early 2022. In September 2025, Mr C received a badly worded letter and text message about the mortgage that caused a severe collapse requiring hospitalisation. The ombudsman found that while the arrears information reported to credit agencies was accurate and communications were necessary, Bank of Scotland should have been more flexible in suppressing communications to Mr C, particularly by removing his mobile number sooner and requesting information from Mrs C to suppress letters. The ombudsman upheld the complaint and ordered £2,000 compensation for the additional, avoidable distress caused over approximately seven years.

The Ombudsman's reasoning

While Bank of Scotland took some positive steps to support Mr and Mrs C (holding recovery action, limiting contact in 2018, seeking suspended possession order), it failed to adequately adjust its communications when repeatedly informed of Mr C's mental health vulnerabilities. The ombudsman found that Bank of Scotland should have been more flexible and sympathetic in suppressing communications to Mr C, particularly by removing his mobile number sooner and requesting necessary information from Mrs C to suppress letters. Although the arrears were genuine and communications about them were necessary, the firm's failure to implement reasonable adjustments caused additional, avoidable distress over approximately seven years. The September 2025 communications, which were badly worded and arrived simultaneously, caused severe harm requiring hospitalisation. The ombudsman acknowledged that while Mr C's mental health issues had multiple causes, Bank of Scotland's failure to adjust communications materially contributed to additional distress that could have been prevented.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website