Not upheld: account administration error - wrongful removal of beneficiary status complaint against Nationwide Building Society
Financial Ombudsman decision DRN-6367510 of 2026-06-05T00:00:00+00:00. account administration error - wrongful removal of beneficiary status complaint against Nationwide Building Society. Outcome: Not upheld.
Decision detail
| Reference | DRN-6367510 |
|---|---|
| Decision date | 2026-06-05T00:00:00+00:00 |
| Firm | Nationwide Building Society |
| Product | Savings / ISA |
| Claim type | account administration error - wrongful removal of beneficiary status |
| Outcome | Not upheld |
| Remedy | Nationwide to pay the outstanding £450 compensation (£425 remaining after £25 already paid). Nationwide offered to either: (1) add D's name as joint account holder with Mrs M, or (2) open an account in D's sole name and transfer the funds. Nationwide's final response letter and this ombudsman decision serve as documentary evidence of D's beneficial ownership. |
Summary
Mrs M opened a bare trust savings account for her daughter D in 2017. When D turned 18 and the account was transferred to a different product, D's name was incorrectly removed as beneficiary, leaving only Mrs M's name on the account. The error was discovered in 2025 and Nationwide accepted liability but could not reverse it as it no longer offers trust accounts. Nationwide offered to either add D as a joint account holder or transfer funds to an account in D's sole name, with £450 compensation. The ombudsman upheld Nationwide's position, finding the remedies fair and the compensation appropriate, as D remained the beneficial owner and the complaint documentation would serve as evidence of this.
The Ombudsman's reasoning
The ombudsman accepted that Nationwide made an error in removing D as a beneficiary but found that the practical remedies offered (adding D as joint account holder or transferring funds to an account in D's sole name) were fair given that Nationwide no longer offers trust accounts and D is over 18. The ombudsman reasoned that D remained the beneficial owner despite not being named on the account, and that the complaint letter and Nationwide's response would serve as sufficient documentary evidence of this. The ombudsman could not require Nationwide to provide a product that no longer exists.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Nationwide Building Society, all decisions | 13,232 | 21% |
| Savings / ISA, all decisions | 7,604 | 22% |
Source
Read the original decision on the Financial Ombudsman Service website