Partially upheld: mortgage valuation dispute and poor customer service complaint against THE CO-OPERATIVE BANK PLC

Decision detail

Summary

Ms B complained that Co-op's valuer incorrectly valued her property as two-bedroom when she had legally converted a reception room into a bedroom. After Ms B submitted two appeals with comparable property evidence, Co-op rejected them without adequately explaining the valuation basis. The ombudsman found that while it was reasonable for Co-op to rely on its valuer's professional conclusions about saleability and comparable properties (which fall outside FOS jurisdiction), Co-op made a mistake by failing to explain to Ms B that mortgage valuations are based on 'readily saleable' properties considering the property's designed purpose. The ombudsman partially upheld the complaint, awarding £250 compensation for poor customer service and inadequate explanation, but rejected Ms B's claims that the valuation itself was wrong.

The Ombudsman's reasoning

While the ombudsman found it reasonable for Co-op to rely on its valuer's professional expertise and conclusions about saleability and comparable properties, Co-op made a mistake by failing to explain to Ms B why the property was valued as two-bedroom. The valuer had provided an explanation regarding mortgage valuations being based on 'readily saleable' properties and the property's designed purpose, but Co-op did not communicate this to Ms B, giving the appearance of having 'washed its hands of the issue.' This constituted poor customer service. The ombudsman determined that valuers fall outside FOS jurisdiction, so the assessment focused on whether Co-op's actions were fair and reasonable, not whether the valuer's conclusions were correct.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website