Not upheld: service error - incorrect account restriction complaint against Nationwide Building Society

Decision detail

Summary

Mr D complained that Nationwide Building Society incorrectly blocked his sole personal account after he reported a death and was arranging a funeral, and that the £50 compensation paid was inadequate. Nationwide acknowledged the error occurred due to human error when processing the bereavement notification and removed the restriction the same day (less than two hours). The ombudsman found that while the timing during bereavement increased emotional impact, the practical impact was limited because the account held no funds, no specific payments were prevented, and the restriction was very brief. The ombudsman upheld Nationwide's position that £50 was fair compensation for a temporary service error with no financial loss and limited practical consequences.

The Ombudsman's reasoning

The ombudsman acknowledged the distressing context of bereavement but found that the practical impact of the restriction was limited because the account held no funds, no specific payments were prevented, and the restriction lasted less than two hours. While the timing during bereavement increased emotional impact, the ombudsman distinguished between distress caused by broader circumstances versus distress caused by the service failure itself. The ombudsman concluded that £50 was fair compensation for a temporary restriction with no financial loss and limited practical impact, consistent with comparable cases.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website