Not upheld: unfair treatment in mortgage product switching; alleged breach of Consumer Duty obligations complaint against Barclays Bank UK PLC

Decision detail

Summary

Mr and Mrs S complained that Barclays acted unfairly by allowing them to switch to a five-year fixed rate mortgage product online while they were experiencing financial difficulties and had recently accessed Mortgage Charter support. They sought to exit the fixed rate without paying the early repayment charge. Barclays argued that the switch was made on a non-advised basis and the customers were not in arrears, so there was no reason to block the process. The ombudsman upheld Barclays' position, finding that clear information was provided, the customers had the option to seek advice but chose not to, and Consumer Duty does not require firms to prevent all harm where appropriate information and support have been offered.

The Ombudsman's reasoning

The ombudsman found that Barclays provided clear, fair and non-misleading information through the online process and the mortgage offer. Mr and Mrs S were given the option to seek advice but chose the non-advised route. The ombudsman determined that Consumer Duty does not require firms to prevent all harm or intervene in every customer decision where appropriate information has been provided. The fact that customers were experiencing financial difficulty does not remove their ability to make their own choices when they have been provided with sufficient information and had the option to seek advice.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website