Not upheld: unfair interest rate reduction and notification adequacy complaint against Saffron Building Society

Decision detail

Summary

G, a limited company, complained that Saffron Building Society unfairly reduced the interest rate on its variable rate savings account from 3.95% to 3.30%, claiming insufficient notice was given and the new rate was uncompetitive. G also complained about a delay in receiving withdrawn funds via BACS and claimed Saffron breached FCA Consumer Duty regulations. The ombudsman found the account terms clearly permitted rate changes with notice, Saffron sent notification emails to the correct addresses provided by G's directors, the BACS timescales were disclosed in the terms, and Saffron's rates were competitive. The ombudsman did not uphold the complaint.

The Ombudsman's reasoning

The ombudsman found that Saffron acted fairly because: (1) the account was clearly a variable rate account allowing rate changes with sufficient notice; (2) Saffron sent notification emails to the correct email addresses provided by G's directors and was not obliged to use multiple notification formats; (3) the BACS payment timescales and transfer limits were clearly set out in the account terms; (4) Saffron's rates were higher than average for similar accounts at the time, demonstrating fair value; and (5) the FCA Consumer Duty does not require firms to match competitors' rates or set prices.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website