Not upheld: failure to action customer instructions on bond reinvestment complaint against Secure Trust Bank Public Limited Company

Decision detail

Summary

Mr T complained that Secure Trust Bank failed to correctly action his instructions when his fixed rate bond matured on 9 May 2025. He instructed that £77,850 be reinvested but claimed he wanted the accrued interest sent to his nominated account; however, the firm reinvested both the capital and interest. Secure Trust maintained it followed his instructions and transferred the interest to his account by 12 May as a gesture of goodwill. The ombudsman found the firm had provided clear onscreen warnings about interest treatment and upheld the firm's position that it correctly followed the customer's instructions, therefore not upholding the complaint.

The Ombudsman's reasoning

The ombudsman found that Secure Trust provided clear and prominent warnings about interest treatment on the reinvestment instruction screen. The warning was not hidden in small print but appeared directly above the selection boxes. The ombudsman considered that customers should take such warnings into account when deciding the reinvestment amount. The ombudsman did not expect Secure Trust to deduct accrued interest from the specified reinvestment amount. The resolution timeframe of 3 days was reasonable, and the firm acted as a gesture of goodwill.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website