Not upheld: Account administration errors complaint against Lloyds Bank PLC

Decision detail

Summary

Mr M complained that Lloyds failed to close his stocks and shares ISA when it ended their banking relationship in November 2023, resulting in him continuing to receive quarterly statements. He believed the £20 compensation offered was inadequate. The ombudsman found that Lloyds had indeed made an administrative error but concluded that once notified, Lloyds responded appropriately by investigating, apologising, closing the account, and issuing compensation. The ombudsman determined that £20 fairly reflected the distress and inconvenience caused by this specific error, and did not uphold the complaint for additional compensation.

The Ombudsman's reasoning

The ombudsman acknowledged that Lloyds made an administrative error by failing to close the stocks and shares ISA, which caused confusion and frustration. However, once Lloyds became aware of the issue, it investigated promptly, acknowledged the mistake, apologised, closed the account, and issued compensation. The ombudsman distinguished between the distress caused by this specific administrative error and the wider distress Mr M experienced from the account closure decision itself (which fell outside the scope of this complaint). The ombudsman concluded that £20 fairly reflected the impact of the specific error, as it was administrative in nature and Lloyds took steps to rectify it once notified.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website