Not upheld: misleading information regarding early repayment charge liability complaint against Nationwide Building Society

Decision detail

Summary

Miss S complained that Nationwide wrongly created an expectation she would not be liable for an early repayment charge (ERC) when redeeming her mortgage. Nationwide admitted it misled her in a phone call on 1 August 2025 by stating no ERC was due, but corrected this misinformation on 4 August 2025 before the transaction was concluded. Miss S confirmed she would proceed with the redemption despite the ERC. The ombudsman found the ERC was rightfully payable under the contract terms, the misinformation lasted only three days, and there was no evidence Miss S suffered detriment. The ombudsman upheld Nationwide's £150 compensation as fair and reasonable and did not uphold the complaint.

The Ombudsman's reasoning

The ombudsman determined that while Nationwide did mislead Miss S about the ERC liability, the misinformation was corrected within three days and before the transaction was concluded. Miss S confirmed she would proceed with the redemption despite the ERC. There was no evidence that Miss S suffered detriment by changing her position during the brief three-day period. The ERC was rightfully applied under the contract terms. The £150 compensation already paid by Nationwide was assessed as fair and reasonable for the temporary raising of expectations, considering the short duration and lack of demonstrable harm.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website