YBS refusing to cancel pending product transfer despite clear mistake – serious financial impact

TechWizard1987

Hi all,

First of all I think this is the best category I can post it to - apologies if its in the wrong place.

I’m hoping someone can offer guidance or share experience, because I’m in a very difficult situation with Yorkshire Building Society and I’m struggling to see a way forward.

What happened

• On 8 April I selected a mortgage product online.
• The system only provides a generic automated email with no product details.
• The full illustration is only visible at the moment of selection and disappears afterwards.
• I didn’t realise a mistake had been made until over a month later, when I received a letter showing a different rate had been applied.
• I referenced the 4.5% rate in a secure message at the time, so I clearly believed that was what I had chosen.

What YBS have said

• They say I clicked “accept” and therefore “waived my rights” to cancellation.
• They say they have evidence of the product I selected, which may well be the case.
• They also say they cannot confirm what other products were available at the time, so they cannot validate my belief that a lower rate was available.
• They have refused to cancel the pending product transfer, even though it has not yet started (starts 1 August).

Why this is a problem

• The repayments at the applied rate will cause significant financial detriment.
• I explained that I may not be able to maintain the mortgage at this rate.
• Despite this, the decision to uphold the transfer was made immediately, even after escalation to a manager.
• I escalated to the CEO, who passed it to the Executive Complaints Team, but the outcome was the same.

Customer journey issue

The biggest problem for me is that once the illustration disappears, there is no way for a customer to retrieve it or verify what was selected. The online account also shows no details of the pending product. So any mistake — even an honest one — is impossible to detect until a letter arrives weeks later.

Where I am now

• I’m waiting for the final response letter.
• I will be going to the Financial Ombudsman Service.
• In the meantime, I wanted to ask the community:

My questions

1. Has anyone seen a lender refuse to cancel a pending product before it activates?
2. Can a lender say a customer “waives their rights” under FCA rules simply by clicking accept?
3. Has anyone had success with the Ombudsman in similar product‑selection or consent‑related cases?
4. Is there anything else I should be doing while I wait for the final response?

Any advice or shared experience would be hugely appreciated.
Thanks

RelievedSheff

What rate do you believe you will get that is better than 4.5%?

MyRealNameToo

1. Never tried
2. There are no statutory cooling off periods for mortgages so you have no rights to waive
3. From the other side, and not for mortgages, I've seen plenty of FOS complaints. There is no universal outcome, it depends a lot on the finer detail of the case and inevitably, a little bit on who your case handler is
4. You could prepare the materials etc to go to the FOS but shouldn't submit until you have the final response

Their system doesnt sound to out of the ordinary, with NW (at least the last time I did a renewal) you can only see the rates until you have selected one and once selected you can't see what other options there were nor what you selected.

The FOS does consider industry norms so if most do something similar they are less likely to say that your bank is doing something wrong

I tend to use a broker because most the time there is no difference in price and once it was marginally cheaper so its then down to them if they mess up and select the wrong option. They have also informed me of upcoming rate increases which initially I thought was a sales tactic but when speaking to another broker they confirmed the rates were about to change

TechWizard1987

https://forums.moneysavingexpert.com/discussion/comment/82032666#Comment_82032666

What I’m really trying to understand here is whether a lender can refuse to cancel a pending product more than 50 days before it starts. I’ve spoken to several brokers and they’ve all said the same thing, product transfers can normally be cancelled right up until around two weeks before activation.

In my case, I believed I had selected the 4.5% product, but YBS are applying 5.1%. Even now there are products around 4.4%, so the 5.1% rate is significantly out of line with both what I thought I’d chosen and what’s currently available.

My question isn’t about chasing a better rate, it’s about whether YBS can refuse to correct a mistake when there is still plenty of time to do so. From what I can see, this seems to go against the FCA’s requirement to prevent foreseeable harm, especially when the repayments at 5.1% will be unaffordable for me.

That’s what I’m trying to clarify.

dunstonh

My questions

Has anyone seen a lender refuse to cancel a pending product before it activates?

Can a lender say a customer “waives their rights” under FCA rules simply by clicking accept?

Has anyone had success with the Ombudsman in similar product‑selection or consent‑related cases?

Is there anything else I should be doing while I wait for the final response?

What rights under FCA rules are you referring to?

Product transfers do not gain a statutory right to cancel. It is at the discretion of the lender whether they are willing to unwind a change once it's gone through processing even if it has not yet taken effect.

The Ombudsman is not a consumer champion and will not automatically take your side. They consider fairness and rules and regulations. The FOS will ask them to verify the process and what you were given at the point of sale. If they are satisfied that YBS showed you the correct information at the time and you agreed to it, they are likely to say YBS has acted fairly and not uphold the complaint. If they conclude that the online process or wording was unclear and that this materially contributed to you selecting the wrong product, then they may decide some redress is appropriate.

What I’m really trying to understand here is whether a lender can refuse to cancel a pending product more than 50 days before it starts. I’ve spoken to several brokers and they’ve all said the same thing, product transfers can normally be cancelled right up until around two weeks before activation.

Yes, they can, as there are no statutory rights to cancel.

In my case, I believed I had selected the 4.5% product, but YBS are applying 5.1%. Even now there are products around 4.4%, so the 5.1% rate is significantly out of line with both what I thought I’d chosen and what’s currently available.

When you apply for a fixed rate product, you are asking the lender to reserve funds from a pool which is limited. The fact that a future fixed term offering is lower or higher is irrelevant. It's what matters at the point of application and what is applied for at that time.

If the lender backtracks at this point, then it will be at financial detriment to them as the investors that the funds have been sourced from will still want paying.

In my case, I believed I had selected the 4.5% product, but YBS are applying 5.1%. Even now there are products around 4.4%, so the 5.1% rate is significantly out of line with both what I thought I’d chosen and what’s currently available.

Show them the illustration that you downloaded at the point of application. It doesn't matter that it's not available at any other point; once you've downloaded it, that's your copy for your file.

My question isn’t about chasing a better rate, it’s about whether YBS can refuse to correct a mistake when there is still plenty of time to do so. From what I can see, this seems to go against the FCA’s requirement to prevent foreseeable harm, especially when the repayments at 5.1% will be unaffordable for me.

Based on what you have written so far, it sounds as though YBS have applied the product you actually selected, even if that was not the one you intended to pick. In that situation the “mistake” sits on the customer side rather than the firm’s. The FCA’s requirement to prevent foreseeable harm does not mean a lender must undo any customer error, especially where they gave the correct information at the time – that duty is more about how they design and operate their processes and how they respond to genuine vulnerability.

TechWizard1987

https://forums.moneysavingexpert.com/discussion/comment/82032755#Comment_82032755

Thanks, that’s helpful context.

I understand there’s no statutory right to cancel a product transfer, but I’m trying to clarify whether refusing to use discretion, when the product hasn’t started, there are more than 50 days to act, and the customer has raised affordability concerns, aligns with FCA Principles 6 and 7 and the Consumer Duty (PRIN 2A.2).

Those rules require firms to treat customers fairly, communicate clearly, and avoid foreseeable harm. In my case, the risk of repossession was explicitly raised and acknowledged, yet the decision was declined within minutes. That’s what I’m trying to understand.

This is my understnding of the principles:

FCA Principle 6 – Customers’ Interests
“A firm must pay due regard to the interests of its customers and treat them fairly.”

FCA Principle 7 – Communications with Clients
“A firm must pay due regard to the information needs of its clients and communicate information to them in a way which is clear, fair and not misleading.”

Consumer Duty (PRIN 2A.2.1R)
“A firm must act to deliver good outcomes for retail customers.”

Consumer Duty – Avoiding Foreseeable Harm (PRIN 2A.2.8R)
“A firm must avoid causing foreseeable harm to retail customers through its conduct, products or services.”

kingstreet

Here's the PT page for Accord, YBS broker arm. You can look at changing rates and cancellation here;-

https://www.accordmortgages.com/products/product-transfers

TechWizard1987

Thanks all, that clarifies my understanding.

I appreciate the explanations around statutory cancellation rights. My intention wasn’t to argue that a statutory right exists, but to understand how a refusal to use discretion fits with FCA Principles 6 and 7 and the Consumer Duty, given the 50‑day window and the affordability concerns I raised.

The regulatory wording I referenced was simply to frame the question, and I think I now have the clarity I need on that point.

Thanks again for the input.

Woodstok2000

Surely the whole point of 'discretion' is that you can refuse to use it. If they had to agree to your request, it wouldn't be discretionary….

ACG

1. Has anyone seen a lender refuse to cancel a pending product before it activates? Irrelevant.
2. Can a lender say a customer “waives their rights” under FCA rules simply by clicking accept? Not normally. But how long was the gap between applying and raising the issue?
3. Has anyone had success with the Ombudsman in similar product‑selection or consent‑related cases?
4. Is there anything else I should be doing while I wait for the final response? No. You have taken your complaint to Leeds. If that does not give you the answer you want then you have the right to go to the ombudsman. There is nothing more you can really do.

MyRealNameToo

https://forums.moneysavingexpert.com/discussion/comment/82032803#Comment_82032803

My experience of the FOS is that complaints based on the relatively vague FCA principles generally dont go very well.

On Cust Duty you would need to make a much stronger argument of how doing what you instructed them to do is out of line with their duty. The FOS explicitly looks at "fair" outcomes, fair to both business and customer and whilst you may not like not having a cancellation right if they can show there is material complexity or costs for not allowing you cancel then the ombudsman may rule in their favour.

Any case that gets escalated from a adjudicator to a full ombudsman gets published on their website and can be searched https://www.financial-ombudsman.org.uk/decisions-case-studies/ombudsman-decisions . Whilst their decisions are not binding on themselves they do tend to be relatively consistent and so looking for similar cases may be helpful.

https://www.financial-ombudsman.org.uk/decision/DRN-6279975.pdf

You probably won't be too happy reading the above case, another complaint about not being able to withdraw from an accepted offer but the Ombudsman didnt uphold their case