Not upheld: account management - removal of nominated bank account complaint against Hargreaves Lansdown Asset Management Limited (HLAM)

Decision detail

Summary

Mrs C complained that HLAM removed her Nominated Bank Account (NBA) which was in her husband's name, after she had been receiving payments to it for approximately 17 years. HLAM explained they removed it because the account holder's name did not match Mrs C's name on the HLAM account, in accordance with their policy and Terms and Conditions. The ombudsman found that HLAM's requirement for NBAs to be in the customer's own name is standard industry practice and fair, and that HLAM acted reasonably in removing the non-matching account as part of a systematic exercise to verify account holder names. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman determined that HLAM's requirement for NBAs to be in the customer's name is standard industry practice and fair. HLAM's removal of Mrs C's NBA was consistent with their policy, their Terms and Conditions, and how they treated all customers. Although HLAM had previously made payments to the husband's account, the ombudsman found it was not unreasonable for HLAM to enforce their stated policy when they gained the ability to verify account holder names. The ombudsman was satisfied that Mrs C would have been notified of any changes to the Terms and Conditions.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website