Not upheld: Account administration errors complaint against Bank of Scotland plc

Decision detail

Summary

Mr A complained about Bank of Scotland's administration of his current account following a switch to another bank. He was told he owed no money before the switch, but subsequently received notice of an unarranged overdraft caused by Direct Debits taken before the switch completed. Bank of Scotland acknowledged poor service and paid £120 compensation, but maintained the debt was legitimate. The ombudsman found the debt was owed by Mr A and the compensation was fair, declining to uphold the complaint. The subsequent default of the debt fell outside the scope of the complaint as it occurred after the complaint was raised.

The Ombudsman's reasoning

The ombudsman found that the Direct Debits were legitimately owed by Mr A and were taken before the account switch completed. Bank of Scotland's decision to pay them was reasonable as it avoided potential adverse action by the originators. Although the timing created an unexpected debt and Bank of Scotland could have warned Mr A about upcoming Direct Debits, this does not absolve Mr A of responsibility to repay. The ombudsman accepted that service was poor but found the £120 compensation already paid was fair and reasonable. The subsequent default fell outside the scope of the complaint as it occurred after the complaint was raised.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website