Not upheld: breach of agreement / poor complaint handling / service failure complaint against TSB Bank plc

Decision detail

Summary

Mr and Mrs W complained that TSB contacted them about their mortgage arrears despite agreeing to place holds on their account following a family member's critical hospitalisation in August 2025. TSB initially offered £50 compensation, which Mr and Mrs W rejected and requested the complaint be reopened. TSB subsequently offered an additional £100 (£150 total) after acknowledging the delay in responding to the reopened complaint. The ombudsman found that while TSB's service was poor in not responding promptly, the holds were appropriately time-limited and TSB was entitled to contact them after the holds expired. The ombudsman determined that £150 total compensation was fair and reasonable for the additional distress caused by the delayed complaint response.

The Ombudsman's reasoning

The ombudsman acknowledged the distressing circumstances but found that TSB's actions were largely fair and reasonable. While TSB took too long to respond after reopening the complaint, the ombudsman determined that most contact between the parties was either in response to complaints or initiated by Mr and Mrs W themselves. The holds were appropriately time-limited rather than indefinite, and it was reasonable for TSB to contact them once hold periods expired to discuss their situation and potential further support. The delay in responding to the reopened complaint did add to their distress, but £150 total compensation was considered fair and reasonable for this service failure.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website