Not upheld: insufficient notice of interest rate reduction; failure to notify of FSCS threshold change; poor customer service complaint against Aldermore Bank Plc

Decision detail

Summary

Ms H complained that Aldermore Bank failed to provide sufficient notice of an interest rate reduction on her ISA (6 days instead of 14 days) and failed to notify her of a FSCS threshold change. She also complained about poor customer service when her husband attempted to complain on her behalf. Aldermore acknowledged the service failures and paid £3.38 in loss of interest and £100 compensation. The ombudsman found these remedies to be fair and reasonable and did not uphold the complaint for further compensation, noting that the firm was not required to notify of the FSCS change and could not discuss the account with the husband without Ms H's authority.

The Ombudsman's reasoning

The ombudsman considered that Aldermore's remedy of 8 days backdated interest was reasonable compensation for the shortfall in notice period (6 days instead of 14 days). Regarding the FSCS threshold, the ombudsman found Aldermore was not required to notify Ms H at the time and was not liable for speculative loss of interest from potential earlier deposits. The £100 compensation for service failures was deemed fair, and the firm was correct that it could not discuss the account with the husband without Ms H's authority.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website