Not upheld: misinformation regarding overdraft interest terms and irresponsible application of charges complaint against Bank of Scotland plc trading as Halifax

Decision detail

Summary

Miss J complained that Halifax incorrectly told her via live chat in February 2025 that her overdraft would be interest-free, but interest charges began in August 2025, causing her to exceed her limit. Halifax had previously sent letters in May 2024 and May 2025 correctly stating the interest-free period would end in August 2025. The ombudsman found that Halifax's remedial actions—refunding £46.48 in charges, freezing interest until 29 November 2025, paying £100 compensation, and protecting her credit file—were sufficient and fair. The complaint was not upheld, and the ombudsman rejected Miss J's request to write off the overdraft as disproportionate.

The Ombudsman's reasoning

The ombudsman acknowledged that Miss J was given incorrect information but found that Halifax had taken sufficient remedial action. The ombudsman noted that the May 2025 letter should have alerted Miss J to a potential discrepancy and prompted her to seek clarification. The ombudsman considered Halifax's refund of charges, extension of the interest-free period, £100 compensation payment, and credit file protection to be fair and proportionate remedies. The ombudsman rejected Miss J's request for the overdraft to be written off as disproportionate.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website