Not upheld: Account administration errors complaint against GVS Prepaid Limited

Decision detail

Summary

Mr T complained that GVS Prepaid Limited charged a 90p inactivity fee one month early on his gift card and failed to promptly credit a promised top-up, resulting in the card appearing invalid when he attempted to use it in store. GVS upheld the complaint and offered £25 compensation. The ombudsman found GVS breached their own terms by deducting the fee early, caused delays in processing the top-up beyond the promised one working day, and likely experienced technical issues on their side affecting the card's validity. Although GVS refunded Mr T to his original financial position, the ombudsman upheld the £25 compensation as proportionate for the distress and inconvenience caused.

The Ombudsman's reasoning

The ombudsman found that GVS deducted the inactivity fee one month early in breach of their own terms, caused delays in crediting the promised top-up, and likely experienced technical issues on their side that caused the card to appear invalid in-store. However, GVS did refund Mr T to his original financial position. The ombudsman determined that £25 compensation was proportionate for the distress and inconvenience caused, noting that FOS awards are not designed to punish businesses but to compensate for wrongful conduct causing distress beyond what naturally flows from the event.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website