Later that day, the bank offered Donna a payment of $500, subject to the same condition she found unacceptable. Donna complained that the bank had already offered her $1,479. After reviewing the call, the bank reinstated the $1,479 offer, but Donna again rejected it because the condition remained. Donna said the bank's actions and absurd conditions had forced her to refinance elsewhere. She asked us to require the bank to reimburse her refinancing costs and compensate her for the stress and inconvenience she had suffered.

Our investigation

The bank accepted that its staff member should have explained, before mentioning the $1,479 figure, that any amount discussed was indicative only and subject to further approval. The bank offered Donna $500 as compensation for this failure to communicate clearly and effectively, as required by the Code of Banking Practice. We found that the bank’s offer was fair. It could have communicated with Donna more clearly in the initial phone call, but it clarified the terms and size of its offer within hours, so the inconvenience was brief. Retention payments are discretionary incentives, so the bank was entitled to decide both the amount it was willing to offer and the conditions attached to that offer. It did not have to remove the condition that Donna objected to or cover the costs of her decision to refinance elsewhere.

Outcome

Donna accepted the bank's offer.