Upheld: Service failures generally complaint against Frasers Group Financial Services Limited trading as Studio

Decision detail

Summary

Mrs H complained to Studio about confusing emails, lack of account information, and the transfer of her account to another company (L), which prevented her from continuing to use the account for purchases. Studio initially paid £15 compensation and the FOS investigator recommended an additional £50, but Mrs H sought an ombudsman's decision. The ombudsman upheld the complaint, finding that Studio's communication was unclear and unfair, particularly through emails that incorrectly suggested non-payment and failed to provide promised follow-up information. While the account transfer was contractually permitted and the persistent debt communication was adequate, the ombudsman determined that the cumulative poor communication caused Mrs H significant distress, especially given her vulnerability to unclear communication affecting her mental health. The ombudsman ordered Studio to pay £150 in total compensation (£135 additional), rejecting the request to write off the debt as Mrs H had benefited from the account.

The Ombudsman's reasoning

The ombudsman found that Studio failed to communicate fairly and clearly with Mrs H through multiple confusing emails, lack of promised follow-up information, and unclear explanation of the account transfer and persistent debt situation. While the account transfer was permitted under the terms and conditions and the persistent debt communication was adequate, the overall pattern of poor communication caused Mrs H distress and inconvenience, particularly given her vulnerability to unclear communication affecting her mental health. The ombudsman rejected the request to write off the debt as Mrs H benefited from the account, but determined compensation was appropriate for the communication failures.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website