Not upheld: service failure / account opening delays / lack of communication complaint against Lloyds Bank Plc

Decision detail

Summary

Miss P applied to open a bank account with Lloyds and was asked to bring her passport to a branch for verification. After submitting her identification, she was told she would receive an update within a few days but heard nothing further. Lloyds later acknowledged it had not handled the matter correctly and paid £100 compensation. Miss P complained to the FOS, arguing the compensation was insufficient given the extended period without banking services and the inconvenience caused. The ombudsman upheld Lloyds' position, finding that £100 was fair compensation for the disappointment and delays, particularly as Miss P could have applied to another bank earlier and did eventually obtain banking services elsewhere.

The Ombudsman's reasoning

The ombudsman acknowledged Miss P's disappointment and the impact of delays and lack of communication, but considered that £100 compensation was appropriate for a matter causing disappointment lasting weeks. The ombudsman noted that Miss P could have applied to another bank earlier if concerned about lack of banking access, and that she did ultimately obtain banking services elsewhere. The ombudsman was not bound by compensation paid by another entity in the same banking group and applied FOS guidance on typical awards for similar cases.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website