Not upheld: Account administration errors complaint against Bank of Scotland plc trading as Halifax

Decision detail

Summary

Mrs T, as executor of her late father's estate, complained that Halifax delayed releasing funds from the deceased's account after she provided the Grant of Probate on 17 December 2025. Halifax's standard process required funds to be released within 25 working days, but the funds were not released until 10 February 2026, causing a 13 working day delay. Halifax acknowledged the error and paid £200 compensation to Mrs T. However, the ombudsman declined to uphold the complaint because the eligible complainant is the estate itself, not the executor, and FOS rules prevent compensation being awarded to representatives for personal distress or inconvenience. No financial losses to the estate were demonstrated.

The Ombudsman's reasoning

The ombudsman found that while Halifax made errors and caused a 13 working day delay, the complaint was brought on behalf of the estate of Mr C, which is the eligible complainant. Under FOS rules, compensation can only be awarded to the eligible complainant, not to representatives such as executors. The estate, as a legal entity, cannot suffer personal distress. No financial losses to the estate itself were demonstrated, as any potential loss (such as lost interest on savings) would have been experienced by Mrs T personally as the sole beneficiary, not by the estate.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website