Not upheld: interest rate fairness and account management complaint against Bank of Scotland plc trading as Halifax

Decision detail

Summary

Ms C complained that her Halifax savings account did not earn interest at the expected rate and that it was changed to a Web Saver Variable account without her knowledge or consent in 2015. She only discovered the lower rate in October 2024 when she switched to a Bonus Saver account. Halifax maintained it had contacted her about rate changes and that she had instructed the account change, but could not produce documentary evidence. The ombudsman found it highly unlikely Halifax would have arbitrarily changed the account without Ms C's instruction, particularly given the long period she held it and the communications she received. The ombudsman concluded the interest rate paid was fair under applicable regulations and was not an outlier in the market, and that Halifax provided appropriate information to Ms C about her account.

The Ombudsman's reasoning

The ombudsman found it highly unlikely that Halifax would have arbitrarily opened the Web Saver Variable account without Ms C's instruction, and that Ms C would not have raised concerns about an unwanted account change for such a long period given the communications she received naming the account. The ombudsman concluded that Halifax provided appropriate information about the account and interest rate, and that the rate paid (above 1% post-Consumer Duty) was not an outlier in the market. The ombudsman noted that businesses are free to set their own interest rates provided they do so fairly, and that the Consumer Duty does not require firms to pay the best rate or track the Bank of England Base Rate.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website