Stop complaining about Clydesdale mortgage saga

Stop complaining about Clydesdale mortgage saga

It soon became apparent that this set-up was not working as the bank debited amounts at random and said I was in arrears. Twice it reset the account to try to resolve the problem and eventually I made a formal complaint. In July 2008, the bank awarded me compensation for poor service – £200 for distress plus interest, altogether rounded up to £900.

But matters have gone from bad to worse. In August, I visited the Clydesdale to transfer money out of the offset account to pay for repairs on my property. I discovered that the bank had used my savings to pay off the whole mortgage. I had deposited £37,250, which is the same amount as I was borrowing. They could not tell me when it was done or at whose request.

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This came as a huge shock as I needed several thousand pounds. JM, Edinburgh

Clydesdale says it had already told you it had mistakenly repaid your mortgage, in the July 2008 letter that offered you compensation. It had, but not spelled out in those clear terms.

The bank accepts that it made a mess of your original instructions but is unrepentant about its subsequent behaviour. When it finally reset your mortgage to a single flexi-repay account, it failed to close your other bank accounts. The inadvertent effect is that you have benefited from a difference in interest rates on the various accounts. The bank thought that, as this was working to your advantage, you might want to maintain the arrangement. It asked in 2008 what you wanted to do about your account and says it is still waiting to hear your decision.

The situation changed, and no longer worked in your favour, when you wanted to make a withdrawal. Clydesdale denies responsibility for this. It says it could not have foreseen that you might want to take out money. You still have a choice. You can reinstate the offset arrangement or choose a new mortgage. The bank has sent you another £75 compensation.

You told me you are dissatisfied with this response and intend taking your complaint to the Financial Ombudsman Service. I believe you have nothing substantial left to complain about and should sort out your mortgage directly with Clydesdale Bank.

• Email Margaret Dibben at your.problems@observer.co.uk or write to Margaret Dibben, Your Problems, The Observer, Kings Place, 90 York Way, London N1 9GU and include a telephone number. Do not enclose SAEs or original documents. Letters are selected for publication and we cannot give personal replies. The newspaper accepts no legal responsibility for advice.