Not upheld: account switch, product downgrade, eligibility, cancellation rights, switching incentive eligibility complaint against Nationwide
Financial Ombudsman decision DRN-6429884 of 2026-06-15T00:00:00+00:00. account switch, product downgrade, eligibility, cancellation rights, switching incentive eligibility complaint against Nationwide. Outcome: Not upheld.
Decision detail
| Reference | DRN-6429884 |
|---|---|
| Decision date | 2026-06-15T00:00:00+00:00 |
| Firm | Nationwide |
| Product | Current account |
| Claim type | account switch, product downgrade, eligibility, cancellation rights, switching incentive eligibility |
| Outcome | Not upheld |
| Remedy | No remedy ordered. The ombudsman declined to award compensation, stating that to do so would require finding that Nationwide made a mistake causing the impact, which the ombudsman did not find. |
Summary
Ms M applied online to switch to a Nationwide FlexDirect account with an overdraft and interest benefits but was declined based on a credit check and offered a FlexBasic account instead with no overdraft, interest, or other benefits. Ms M proceeded with the switch but contacted Nationwide the day before completion to cancel and keep her old account. Nationwide refused, stating it was too late to reverse the switch, and the switch completed with Ms M's old account closed and the £175 switching incentive forfeited. The ombudsman found that Nationwide's application process clearly informed Ms M of the downgrade with key information provided before she agreed, that the cancellation refusal complied with switching service rules, and that the incentive eligibility was correctly applied, therefore not upholding the complaint.
The Ombudsman's reasoning
The ombudsman found that Nationwide's online application process clearly informed Ms M that the FlexDirect account was declined, explained why, offered an appeal option, and presented key information about the FlexBasic account (including no overdraft and no interest) before Ms M agreed to proceed. The ombudsman was satisfied this was clear, fair, and not misleading. Regarding cancellation, the ombudsman found that Ms M's request to cancel the day before the switch date was correctly refused under the current account switching guide rules, which state that if cancellation is requested during the six days before the switch date, the old account will be closed because the closure instruction cannot be cancelled. The ombudsman determined that the switching incentive terms are separate from the account product and switching service, and Nationwide correctly applied the eligibility criteria. The ombudsman concluded Nationwide made no mistake that caused Ms M's losses.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Nationwide, all decisions | 2 | 0% |
| Current account, all decisions | 45,590 | 19% |
Source
Read the original decision on the Financial Ombudsman Service website