Not upheld: Misleading information about product accessibility and withdrawal restrictions complaint against Scottish Friendly Assurance Society Limited

Decision detail

Summary

Miss R complained that Scottish Friendly misled her about JISA withdrawal rights during a 2020 phone call, claiming she was told she could access funds if needed. When she later attempted to withdraw money following the child's father's death, she was informed funds were locked in until age 18. Scottish Friendly partly upheld the complaint and paid £50 for unclear communication about HMRC's exceptional circumstances policy. The ombudsman did not uphold the complaint, finding Miss R's recollection of the phone call from six years prior insufficient evidence of misleading information, and noting that the firm's 2020 website and product guide clearly stated funds were locked in until age 18. The ombudsman concluded Scottish Friendly was bound by HMRC rules and correctly refused the withdrawal request, as the only exception is terminal illness diagnosis.

The Ombudsman's reasoning

The ombudsman found that Miss R's recollection of a phone call from approximately six years ago, without corroborating evidence, was insufficient to establish that Scottish Friendly provided misleading information. The archived website and Product Guide from 2020 clearly disclosed that JISA funds were locked in until age 18. The ombudsman noted that HMRC sets ISA rules and Scottish Friendly has no discretion to allow withdrawals outside the permitted exceptions (terminal illness diagnosis). While sympathetic to Miss R's difficult circumstances following the child's father's death, the ombudsman concluded Scottish Friendly was not wrong or unreasonable in refusing the withdrawal request.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website