Not upheld: service failure / delayed withdrawal processing and inability to cancel/redirect transaction outside business hours complaint against Hargreaves Lansdown Asset Management Limited trading as Hargreaves Lansdown

Decision detail

Summary

Mr S submitted a withdrawal request for approximately £100,000 from his stocks and shares ISA shortly before 8pm on a Friday, then discovered his nominated bank account details were outdated. He updated the details via HL's website and requested cancellation and redirection via secure messages and a Saturday morning call, but HL's relevant department was closed over the weekend. The withdrawal was successfully redirected to the correct account on Monday, the first working day. Mr S complained about the service failure and emotional distress caused by the weekend uncertainty, but the ombudsman found HL acted reasonably by operating during normal business hours and processing the payment in accordance with its terms of business, placing responsibility on Mr S to verify details before submission.

The Ombudsman's reasoning

The ombudsman found that Mr S bore responsibility for ensuring correct bank details were recorded before submitting the withdrawal instruction, particularly given the transaction size and time elapsed since the last withdrawal. The app provided an opportunity to check details before submission. HL was entitled to operate its departments during normal business hours and was not required to provide emergency stop mechanisms or weekend support for transaction cancellations. The withdrawal was processed on the first working day following the instruction in accordance with HL's terms of business, resulting in no unreasonable delay. While the ombudsman acknowledged the emotional distress caused, compensation is only appropriate where the firm has failed to meet reasonable expectations, which was not found to be the case here.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website