Not upheld: Account administration errors complaint against Bank of Scotland plc trading as Birmingham Midshires

Decision detail

Summary

Mr M, as personal representative of Ms M's estate, complained that Birmingham Midshires mishandled the mortgage account after Ms M's death in August 2022. Mr M claimed he notified the firm in late 2022 but received no guidance, resulting in a delayed property sale and inflated mortgage balance. The ombudsman found no credible evidence of late 2022 contact and held that Mr M bore responsibility for obtaining probate and managing the estate. While Birmingham Midshires should have referred Mr M to its bereavement team in mid-2024, the firm's prior actions were not unfair, and the compensation and refunds already paid were deemed fair and reasonable. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found no credible evidence that Mr M contacted Birmingham Midshires in late 2022, relying on the absence of records, lack of supporting documentation, and the implausibility that Mr M would wait nearly two years without following up. The ombudsman held that even if contact had been made in 2022, it remained Mr M's responsibility as personal representative to apply for probate and take steps to sell the property, which he did not do until 2025. Birmingham Midshires was entitled to apply interest and take recovery action while unaware of Ms M's death. The firm's failure to refer Mr M to the bereavement team in mid-2024 was an error, but the compensation and refunds already paid were fair and reasonable. The ombudsman could not award further compensation to Mr M personally as he was not the eligible complainant.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website