Upheld: unfair handling of account application and failure to make reasonable adjustments for vulnerable customer complaint against Nationwide Building Society

Decision detail

Summary

Ms B sought to open a savings account for her son Mr K, who has a condition preventing him from managing his own finances, with Ms B as the third-party operator. Nationwide advised that this required either a Court of Protection order or Power of Attorney, and the subsequent branch visit lasted 1.5-2 hours with uncertain staff, causing Mr K significant distress and self-harm. Although the ombudsman found Nationwide's policy to be a legitimate commercial decision, it upheld the complaint because the firm's poor handling of the application and lack of clear communication caused foreseeable distress to a vulnerable customer. The ombudsman ordered £100 compensation, finding this a fair reflection of the distress and inconvenience suffered.

The Ombudsman's reasoning

While the ombudsman could not determine legal compliance with the Equality Act 2010, it assessed whether Nationwide treated Mr K fairly and reasonably. Although Nationwide's policy requiring legal authorisation for third-party account operation is a legitimate commercial decision and the firm followed its normal process, the branch visit was poorly handled due to staff uncertainty and lack of clear communication. The ombudsman found that Nationwide could have anticipated the difficulties for Mr K and that clearer communication and adjustments could have reduced the distress caused during the prolonged appointment.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website