Not upheld: Card / payment disputes complaint against Western Union Payment Services GB Limited

Decision detail

Summary

Mr D complained that WU blocked his account without proper explanation and stopped a $500 payment from his relative in January 2025, leaving him without funds for nine days. WU had originally blocked the account in 2017 for compliance purposes after Mr D failed to respond to three requests for information. When Mr D provided documentation in 2019, WU maintained the block. In January 2025, WU's compliance team determined the incoming payment was outside its risk appetite and required additional information. After Mr D provided further documentation, WU unblocked the account and refunded the payment to the sender on 4 February 2025. The ombudsman did not uphold the complaint, finding that WU acted in compliance with its legal and regulatory obligations, followed its account terms and conditions, and conducted a thorough review process.

The Ombudsman's reasoning

The ombudsman accepted that WU has extensive legal and regulatory responsibilities to prevent financial crime and protect customers from harm. WU's decision to block the account and stop the payment was made in compliance with these obligations and the account terms and conditions that Mr D agreed to. The ombudsman found that WU conducted a thorough review involving senior colleagues and acted fairly in determining the payment was outside its risk appetite. While sympathetic to Mr D's concerns, the ombudsman concluded that WU was not obliged to provide detailed explanations for its compliance decisions and that the seven-day timeline for processing was reasonable given the circumstances.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website