Upheld: Account access error and incorrect information provision complaint against National Savings and Investments (NS&I)

Decision detail

Summary

Mr H Snr complained that NS&I had effectively stolen his son's Premium Bonds after being unable to access the account on 15 November 2025, the day before his son's 16th birthday. NS&I's system had removed the holding from Mr H Snr's control before the 16th birthday and had provided incorrect information about when Mr H Jnr would be contacted. The ombudsman upheld the complaint, finding NS&I made errors in providing incorrect contact timing information and preventing account access one day before the birthday, but rejected other claims including that the address should have been automatically updated. The ombudsman awarded total compensation of £100 (£50 already paid plus an additional £50), finding this appropriate for the distress and inconvenience caused, and rejecting Mr H Snr's claim for compensation based on speculative losses from disinvesting his own bonds.

The Ombudsman's reasoning

The ombudsman found that NS&I made two errors: providing incorrect information about when Mr H Jnr would be contacted, and its system preventing Mr H Snr from accessing the account one day before the 16th birthday. However, the ombudsman rejected the claim that NS&I should have automatically updated Mr H Jnr's address when Mr H Snr changed his own address, as the terms and conditions treat these as separate accounts. The ombudsman also found that Mr H Jnr would not have had immediate access to funds on his 16th birthday regardless, as he needed to confirm he was assuming control and provide his details. Mr H Snr's decision to disinvest his own bonds was his choice and not a direct consequence of NS&I's errors. Compensation was awarded for distress and inconvenience caused by the specific errors, not for speculative losses on potential bond winnings.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website