Not upheld: administrative error and data handling - sending confidential correspondence to wrong address complaint against Bank of Ireland (UK) Plc

Decision detail

Summary

Mr Y complained that Bank of Ireland sent a final response letter regarding his mortgage redemption to his buy-to-let property address instead of his correspondence address, resulting in the tenant opening the letter and discovering he was mortgage-free. Mr Y claimed this led the tenant to demand reduced rent and unnecessary improvements, causing relationship damage and potential financial loss. Bank of Ireland acknowledged the error and offered £180 compensation. The ombudsman found that while an error occurred, Mr Y provided no evidence of actual financial losses, tenant demands, or that any tenant behavior was directly caused by the letter being sent to the wrong address, and therefore upheld Bank of Ireland's compensation offer as fair and reasonable.

The Ombudsman's reasoning

The ombudsman found that while Bank of Ireland made an administrative error, the risk of financial detriment or fraud was low. Mr Y failed to provide evidence of actual financial losses, including proof that the tenant vacated, agreed to rent reductions, or that any demands were made based on knowledge of the mortgage redemption. The ombudsman reasoned that tenancy negotiations are a normal part of property letting business and that Mr Y had not demonstrated these discussions were made more difficult by the letter being sent to the wrong address. The ombudsman concluded that Bank of Ireland's offer of £150 for distress and inconvenience plus £30 for CIFAS registration was fair and reasonable compensation.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website