Not upheld: administrative error and inadequate compensation complaint against Nationwide Building Society

Decision detail

Summary

Mr F complained that Nationwide Building Society failed to refund £16.49 from a closed credit card account for over six years (January 2018 to July 2024). Nationwide accepted the error and offered £50 compensation, which Mr F rejected, seeking £150-£250. The ombudsman found that Nationwide's £50 offer was sufficient, as the calculated interest at 8% simple per annum would be less than £50, and Mr F had not demonstrated sufficient distress or inconvenience to warrant a higher award. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman applied the FOS principle of putting customers back in the position they would have been in had the error not occurred. The 8% simple interest calculation on £16.49 for the period involved would be significantly less than £50. The ombudsman found that Mr F had not been distressed or inconvenienced to an extent warranting more than £50, noting that he did not realize the refund was missing until Nationwide took action and did not complain for nearly a year after the refund was paid. The ombudsman concluded that continuous contact with Nationwide would have been necessary to demonstrate ongoing upset and inconvenience, which was not the case.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website