Not upheld: repossession, property sale valuation, property damage, Data Subject Access Request handling, shortfall debt complaint against Bank of Scotland plc

Decision detail

Summary

Mrs P complained to the Financial Ombudsman Service about Bank of Scotland's handling of her mortgage repossession and the subsequent sale of her property. She claimed the bank failed to properly care for the property, resulting in damage to her belongings, sold the property at an undervalue, failed to provide documentation under a Data Subject Access Request, and should write off the resulting shortfall debt of approximately £900,000. The ombudsman found that the property was properly valued and sold for £1.35 million, which was 35% higher than expected, that Mrs P was responsible for removing her own possessions, that the documentation she sought was not personal data under GDPR, and that the shortfall debt was justified. The ombudsman upheld the £600 compensation already offered by the bank for DSAR handling issues and did not uphold any other aspects of the complaint.

The Ombudsman's reasoning

The ombudsman determined that Bank of Scotland was entitled to take possession and sell the property, and that the bank was required to obtain the best possible price considering market conditions. The property was properly valued by qualified surveyors and offered to the market at the valuation price, ultimately selling for 35% above the expected price, demonstrating it was not sold at an undervalue. Regarding the damaged possessions, it was Mrs P's responsibility to remove her belongings within a reasonable time, and the basement flooding did not appear to affect the sale price. For the DSAR, the ombudsman clarified that the information Mrs P sought did not constitute personal data under GDPR, as it related to the repossession, valuation, and sale process rather than personal data about Mrs P herself. The substantial shortfall debt of approximately £900,000 was justified given the level of outstanding debt at the time of sale, and Bank of Scotland was entitled to record this on her credit file.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website