Not upheld: incorrect interest rate quoted and service failure complaint against Lloyds Bank plc

Decision detail

Summary

Mr H complained that Lloyds quoted him an incorrect interest rate of 4% for his 1-year fixed bond when the actual rate was 3.9%, and that the firm was unable to amend the bond rate. He also complained about poor service, including being given an incorrect interest adjustment amount. Lloyds upheld the complaint, applied a loss of interest adjustment of £89.39 plus additional credits of £245.46, and paid £75 compensation. The ombudsman found the complaint not upheld, concluding that Lloyds had acted fairly and reasonably by correcting the error and putting Mr H in a better financial position than if the error had not occurred, while also appropriately compensating for service failures.

The Ombudsman's reasoning

The ombudsman assessed whether Lloyds made a mistake and responded fairly and reasonably. While Lloyds did quote an incorrect rate (for a different product), it corrected the error by applying a loss of interest adjustment of £89.39 plus additional credits totalling £245.46, resulting in Mr H receiving more interest than he would have earned at the quoted 4% rate. The ombudsman considered that Lloyds resolved the issue on the call, arranged for a manager to speak to Mr H when requested, and paid £75 compensation for service failures. The ombudsman concluded that Lloyds had corrected its mistake, put Mr H in a better financial position, and appropriately compensated for the service received.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website