Partially upheld: Account administration errors complaint against Market Harborough Building Society

Decision detail

Summary

G, a limited company, complained that MHBS unfairly reduced the interest rate on its 180 Day Business Deposit Account in October 2024 and January 2025 without proper notification. MHBS had sent email notifications to a director's email address but G claimed not to have received them. The ombudsman found MHBS acted within the account terms, which permitted variable rate changes with notification by email. While MHBS could not prove the October 2024 email was received, it was more likely than not sent, and MHBS fairly offered compensation for the 16-day period when G may have been unaware. The January 2025 notification was evidenced as sent. The ombudsman upheld the complaint in part, ordering MHBS to pay interest at 0.35% for the period of non-awareness and £100 compensation for inconvenience.

The Ombudsman's reasoning

The ombudsman found that MHBS acted within the terms of the account when reducing the variable interest rate. The account terms clearly permitted rate changes and required notification by letter, email or personal notice. While MHBS could not prove the October 2024 email was received, it was more likely than not sent, and MHBS fairly acknowledged the possibility G was unaware for 16 days and offered compensation for that period. The January 2025 email was evidenced as sent with no record of non-delivery. The ombudsman rejected the requirement for postal notification as unreasonable, but accepted MHBS's offer of £100 compensation for the inconvenience of revoking online access to enable postal communications going forward.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website