Partially upheld: ISA / savings administration complaint against Barclays Bank UK PLC

Decision detail

Summary

Ms A complained about Tesco Bank's failure to promptly transfer her cash ISA to a new product offering better interest rates, which she requested on 1 September 2025. Tesco acknowledged the transfer should have been completed by 4 September 2025 and initially compensated Ms A £80.18 for lost interest and £100 for distress. However, further delays occurred until 13 January 2026, partly because Tesco provided incorrect information about whether Ms A could continue contributing to her 2025-2026 ISA and then failed to proactively contact her to confirm transfer instructions. The ombudsman upheld the complaint in part, finding that Tesco should have been more proactive given the circumstances and Ms A's legitimate concerns, and ordered an additional £100 compensation for the further distress and inconvenience caused.

The Ombudsman's reasoning

The ombudsman agreed that Tesco's initial compensation was fair as it put Ms A in the position she would have been in had the transfer been completed on time. However, the further delays after the final response were caused by Tesco's errors (providing incorrect information about contribution eligibility) and Tesco's failure to be proactive. Although Ms A could have confirmed the transfer instructions, given the issues she had experienced and her legitimate concerns about losing her ISA allowance, the ombudsman understood why she did not. Tesco should have been more proactive in contacting Ms A to confirm her instructions, especially given it was aware of her unhappiness and that her original request was straightforward. Although there was no additional financial loss due to backdating of interest, Ms A suffered further distress and inconvenience from the continued delays and lack of clear advice.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website