Not upheld: Service failures generally complaint against Bank of Scotland plc trading as Halifax

Decision detail

Summary

Mrs T complained to the FOS about Halifax's treatment regarding her joint interest-only mortgage that remained outstanding after the term ended in 2021. She was unhappy about inconsistent information: an adviser on 7 August did not mention impending legal action, but two days later a different adviser confirmed Halifax would pursue legal proceedings. Halifax paid £100 compensation, which the ombudsman found fair and reasonable for the stress caused by the two-day misunderstanding. However, the ombudsman dismissed Mrs T's broader complaint about Halifax's decision to pursue legal action without the consent of the joint mortgage holder, as this affected both parties. The property was subsequently sold and the mortgage redeemed in March 2026.

The Ombudsman's reasoning

The ombudsman separated the complaint into two parts: (1) the customer service and inconsistent information provided, which could be considered without the joint holder's consent as it concerned information given to Mrs T personally; and (2) the decision to pursue legal action, which could not be considered without the joint holder's consent as it affected both parties to the mortgage. On the first part, the ombudsman found that while the information was inconsistent, the misunderstanding lasted only two days and was clarified on 9 August. The £100 compensation was deemed fair to reflect the stress caused by the inconsistent information specifically, separate from the broader stress of Mrs T's overall situation. The ombudsman declined to hold Halifax responsible for the overall difficult circumstances.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website