Upheld: unfair charges and failure to provide required notice of account changes complaint against THE ROYAL BANK OF SCOTLAND PUBLIC LIMITED COMPANY
Financial Ombudsman decision DRN-6307981 of 2026-05-05T00:00:00+00:00. unfair charges and failure to provide required notice of account changes complaint against THE ROYAL BANK OF SCOTLAND PUBLIC LIMITED COMPANY. Outcome: Upheld.
Decision detail
| Reference | DRN-6307981 |
|---|---|
| Decision date | 2026-05-05T00:00:00+00:00 |
| Firm | THE ROYAL BANK OF SCOTLAND PUBLIC LIMITED COMPANY |
| Product | packaged account |
| Claim type | unfair charges and failure to provide required notice of account changes |
| Outcome | Upheld |
| Remedy | RBS must: (1) Refund all Select Platinum packaged account fees charged since August 2025; (2) Pay simple interest on those fees using Bank of England base rate plus one percentage point, calculated from the date of each fee to settlement date, less tax; (3) Pay £50 compensation for distress and inconvenience caused by failing to act on Ms P's downgrade instructions; (4) Make payment within 28 calendar days, or pay 8% simple interest per year on unpaid amounts thereafter. |
Summary
Ms P, a former RBS employee, had retained a Select Platinum packaged account without monthly fees after leaving the bank. In August 2025, RBS began charging her £20 per month without providing the 30 days' notice required by the account terms and conditions. Ms P discovered the charges in late 2025, complained to RBS, and when RBS failed to respond, referred the matter to the FOS. Although RBS had contractual authority to remove the fee-waiver, it breached its obligation to provide notice, depriving Ms P of the opportunity to downgrade to a fee-free account. The ombudsman upheld the complaint and ordered RBS to refund all fees charged since August 2025, pay compensatory interest, and pay £50 compensation for the inconvenience caused by RBS's failure to act on Ms P's subsequent downgrade requests.
The Ombudsman's reasoning
While RBS had contractual authority to remove the fee-waiver under the account terms and conditions, it was required to provide 30 days' notice before doing so. RBS failed to provide this notice, depriving Ms P of the opportunity to downgrade to a fee-free account. Although Ms P could have self-mitigated by downgrading the account herself via the app or online banking, RBS's failure to notify her and failure to act on her subsequent downgrade requests warranted compensation. The refund of all fees charged since August 2025, plus compensatory interest, fairly restores Ms P to the position she would have been in had proper notice been given.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| THE ROYAL BANK OF SCOTLAND PUBLIC LIMITED COMPANY, all decisions | 17 | 21% |
Source
Read the original decision on the Financial Ombudsman Service website