Partially upheld: ISA / savings administration complaint against Nationwide Building Society

Decision detail

Summary

Mr C complained that Nationwide failed to act on his instruction to transfer £20,000 from his wife's account into his maturing ISA. Nationwide correctly refused the request as ISA rules prohibit third-party direct contributions. However, the ombudsman found that Mr C likely sought staff advice when completing the maturity form and would reasonably expect the staff member to identify that section B had been incorrectly signed by his wife. The ombudsman partially upheld the complaint, finding Nationwide failed in its advisory duty, and ordered compensation comprising interest on £20,000 for the period the funds could not be added and £25 for inconvenience. The ombudsman also upheld Nationwide's written warning regarding Mr C's behaviour during a branch interaction.

The Ombudsman's reasoning

While Nationwide was correct to refuse the invalid transfer request (as ISA rules prohibit third-party contributions), the ombudsman found that Mr C likely sought advice from a staff member when completing the form and would reasonably expect that staff member to have the knowledge to identify the error. The staff member should have corrected the form before it was signed. Nationwide failed in its advisory duty. The complaint about complaint handling could not be considered as it falls outside the FOS's jurisdiction. The written warning issued regarding Mr C's behaviour in branch was deemed fair.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website