Not upheld: administrative handling error and misinformation regarding document requirements complaint against Close Brothers Limited

Decision detail

Summary

Mr S complained that CBL mishandled a request to transfer a running account credit agreement (used to finance an insurance policy) from the late Mrs S to himself following her death in April 2025. CBL initially rejected a Scottish Will as invalid, wrongfully requested information from the executors, and sent letters in Mrs S's name after the agreement was cancelled. This ultimately resulted in the estate being charged fees by the executors. While the ombudsman acknowledged CBL's errors regarding Scottish Will requirements and some wrongful information requests, it found CBL acted reasonably in requesting executor identification as part of standard due diligence procedures. The ombudsman concluded that CBL's partial uphold and £60 compensation was fair and reasonable, and did not uphold the complaint.

The Ombudsman's reasoning

The ombudsman found that while CBL made errors regarding Scottish Will validity and wrongfully requested some information from Mr S, CBL acted reasonably in requesting executor identification as part of their standard due diligence procedures for administrative changes. The ombudsman accepted that the request was not an executory issue but found CBL's internal processes justified the information request. The ombudsman concluded that CBL's partial uphold and £60 compensation adequately addressed the misinformation and distress caused, and that CBL was not responsible for the fees charged by the executors.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website