Not upheld: ISA transfer processing and early withdrawal penalty complaint against National Westminster Bank Public Limited Company (NatWest)

Decision detail

Summary

Mr D requested an ISA transfer from bank C to NatWest on 12 November 2025, answering 'no' to a question about whether a notice period applied to his ISA. His ISA with C was not due to mature until 30 November 2025, 18 days later. When C processed the transfer, it deducted a £1,757.18 early withdrawal penalty. Mr D complained to NatWest, arguing it should have known about the maturity date and delayed the transfer. The ombudsman found that the online form's question about notice periods was clear and unambiguous, and Mr D should have answered 'yes'. Since Mr D failed to disclose the maturity date, NatWest had no reason to delay the transfer and correctly processed his request based on the information provided. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that the online form asking about notice periods was framed in clear and unambiguous terms. Mr D, whose ISA had not yet matured, ought to have reasonably known to answer 'yes' to this question. By answering 'no', Mr D failed to inform NatWest that a notice period applied, preventing NatWest from delaying the transfer as it would have done had it been informed. The penalty charge resulted from Mr D's error in not disclosing the maturity date, not from any error or unfair treatment by NatWest. NatWest correctly processed the transfer based on the information Mr D provided and there was no evidence Mr D formally requested a reversal.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website