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

Decision detail

Summary

Mrs D complained that NatWest implemented an ISA transfer before the maturity date, causing her to incur an early withdrawal fee from her previous provider C. Mrs D had completed NatWest's transfer form on 14 November, answering 'no' to a question about notice periods, and the transfer was completed on 18 November, before the ISA's 30 November maturity date. NatWest argued it acted reasonably based on Mrs D's response and could not refund fees charged by C. The Ombudsman upheld NatWest's position, finding that Mrs D should have been aware of her account terms and the consequences of early transfer, and should have contacted NatWest if she wished to delay the transfer until after the maturity date.

The Ombudsman's reasoning

The Ombudsman found that Mrs D's answer of 'no' to the notice period question was a reasonable basis for NatWest to implement the transfer immediately. While the form terminology could have been clearer regarding fixed term ISAs versus notice accounts, Mrs D knew she was making the transfer request before the maturity date and had not informed NatWest of the maturity date or her preference to wait. The Ombudsman considered it reasonable to expect Mrs D to be familiar with her account terms and to take responsibility for the timing of the transfer to avoid fees. NatWest had no reason to delay the transfer and was not responsible for the fee charged by the previous provider.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website