A disabled couple experienced what they describe as "untold stress, sleepless nights and anxiety" after Nationwide Building Society misplaced a substantial £70,000 mortgage overpayment for more than a week, offering what experts call a "ridiculous" £200 compensation for their ordeal.
The mortgage milestone that turned into a nightmare
Robert Milne and his disabled partner visited their local Nationwide branch to make what should have been a celebratory £70,000 overpayment on their mortgage. This significant payment would have reduced their monthly mortgage commitment by more than £800, marking a crucial financial milestone for the couple.
However, their joy quickly turned to distress when the building society's mobile app showed confusing information. After multiple phone calls by Mr Milne, the shocking truth emerged: Nationwide had simply "lost" the £70,000 and had no idea where the substantial sum had gone.
Ten days of uncertainty and health impacts
The money remained missing for ten agonising days, during which the couple experienced severe stress and anxiety. "I had no idea where my money was. I was feeling physically sick," Mr Milne reported. Despite numerous branch visits and phone calls, the couple encountered what they described as "lots of talk but no actual action."
The situation took a serious toll on his partner's health, with the stress triggering a flare-up of her disability that required steroid medication. The entire resolution process took 14 days before the money was properly accounted for and their mortgage correctly adjusted.
The compensation battle begins
Although Nationwide has upheld Mr Milne's complaint and admitted fault, their compensation offer of £200 has been described as "parsimonious" and inadequate given the circumstances. The building society has refused to explain exactly where the £70,000 was during the ten-day period or disclose how much interest they earned while holding funds that rightfully belonged to Mr Milne.
Consumer disputes expert Scott Dixon told Sky News: "This was not a trivial error. Temporarily losing £70,000 is a serious failure. The stress, sleepless nights and impact on your partner's health clearly exceeds the offer of £200 compensation."
Dixon pointed to the Financial Conduct Authority's Consumer Duty rules, which require firms to put customers' needs first and avoid causing foreseeable harm. He suggested that a fair settlement would be in the region of £750-£1,000 plus interest earned on the missing money.
Expert recommends ombudsman intervention
Mr Dixon advised Mr Milne to escalate his complaint to the Financial Ombudsman Service (FOS), noting that financial institutions face costs of up to £650 for each complaint referred to the ombudsman.
"The ombudsman takes a dim view on vulnerable customers being unfairly treated and fobbed off with derisory sums to close complaints, and are likely to award you with higher compensation," Dixon explained.
The FOS routinely awards between £300-£750 for serious distress and inconvenience caused by major banking errors, with higher awards of £750-£1,500 where there's documented health impact or prolonged distress.
Despite being named Which?'s Banking Brand of the Year 2025, Nationwide maintains a poor 1.9 average rating from more than 7,600 reviews on Trustpilot, indicating broader customer service concerns.
Mr Milne has been advised to request a final response letter from Nationwide and then refer his case to the Financial Ombudsman Service for an independent review.
