Not upheld: service complaint - account verification procedures and communication clarity complaint against National Counties Building Society trading as Family Building Society (FBS)

Decision detail

Summary

Mr K complained about FBS's handling of his request to change nominated account details ahead of a bond maturing. FBS was unable to electronically verify the account and instead requested additional documentation, which Mr K believed was an ineffective approach causing unnecessary delay and distress. FBS defended its actions as necessary security measures to prevent fraud, noting that changing nominated accounts is a common fraudster tactic. The ombudsman found FBS acted reasonably and proportionately in its verification procedures, which were aligned with its terms and conditions and regulatory requirements, and did not uphold the complaint.

The Ombudsman's reasoning

The ombudsman found that FBS acted reasonably in attempting electronic verification and, when unsuccessful, proceeding with alternative security measures including documentary evidence. The ombudsman determined that FBS's actions were proportionate to prevent fraud, aligned with its terms and conditions, and compliant with FCA Principles requiring fair treatment. The ombudsman noted that while initial clarity on documentation requirements could have been better, this was soon resolved and Mr K's expectations of 24-hour turnaround were unrealistic.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website