Not upheld: Mortgage administration / arrears handling complaint against OneSavings Bank Plc trading as Kent Reliance

Decision detail

Summary

Mr and Mrs H complained to FOS about OSB's administration of their mortgage after their fixed rate expired in September 2023 and the account reverted to SVR. They claimed OSB failed to notify them of the impending expiry, though OSB had sent letters in July and October 2023. After Mr H contacted OSB in November 2023, the bank offered to apply the old fixed rate retroactively for October to December 2023 and provided £200 compensation. Mr and Mrs H were unhappy that their credit files showed missed payments and sought further compensation and credit file amendments. The ombudsman found that OSB had met its obligations by sending timely notification letters, that the retroactive rate application was a fair concession, and that the credit file reporting was accurate since no payments were made during the disputed period. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that OSB had correctly sent notification letters about the fixed rate expiry and was not obliged to follow up with phone calls, as mortgage administration is largely computerised and proactive monitoring of every account would not be feasible. While acknowledging that Mr H experienced inconvenience through multiple phone calls with different staff members, the ombudsman considered OSB's offer to backdate the old fixed rate for three months to be a fair concession. Regarding credit file reporting, the ombudsman found it was accurate because Mr and Mrs H chose not to make any payments for October, November, and December 2023, creating genuine arrears. The ombudsman was satisfied that OSB had provided the required information about payments and how they were applied, and that the £200 compensation was fair and reasonable.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website