Not upheld: Account administration errors complaint against Lloyds Bank PLC

Decision detail

Summary

Mr B complained that Lloyds Bank opened a Basic Account instead of the Club Lloyds Bank Account he applied for, causing him to miss out on a £200 switch incentive. He also complained that he was not informed he was ineligible for the Club account and that the account appeared incorrectly on his credit file. The ombudsman found that Lloyds Bank was entitled to set eligibility requirements for promotional offers, that Mr B was presented with the Basic Account offer and its terms during the application process, and that the credit file entry was correctly recorded. The complaint was not upheld.

The Ombudsman's reasoning

Financial businesses are entitled to set their own terms and eligibility requirements for promotional offers. Lloyds Bank's terms clearly stated that only certain Club Lloyds Bank Account types qualified for the £200 incentive. The ombudsman was satisfied that Mr B was presented with the account he was eligible for (Basic Account) on the application process and had the opportunity to read the terms and conditions before completing the application. While the ombudsman acknowledged that Lloyds Bank ideally should have notified Mr B of the change and given him the option to cancel, the evidence showed Mr B was presented with the account offer and its terms during the application process. The credit file entry was correctly recorded as 'Current account' rather than 'credit account'. Complaint handling issues fall outside the ombudsman's jurisdiction.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website