Not upheld: Card / payment disputes complaint against Tide Platform Limited

Decision detail

Summary

Business A complained that Tide Platform Limited blocked its business account and cancelled a payment, causing reputational damage and business interruption when client payments bounced back. Tide had stopped the payment on 25 February for compliance checks and requested supporting documentation, which A did not provide until 22 March. The ombudsman found Tide was entitled to take these actions for regulatory compliance and fraud prevention purposes, and that it had properly notified A of its requirements. However, the ombudsman identified a slight delay after documentation was received and acknowledged that temporarily blocking incoming payments caused unnecessary disruption. The ombudsman upheld Tide's £150 compensation offer as fair and reasonable for the short delay and inconvenience, rejecting A's claim for higher compensation.

The Ombudsman's reasoning

The ombudsman accepted that Tide was entitled to stop the payment and request information for compliance purposes, and that it notified A appropriately about what was needed. However, the ombudsman found there was a slight delay after A finally provided documentation on 22 March, particularly when Tide also blocked incoming payments which caused A to contact with more urgency. The ombudsman balanced Tide's legitimate compliance obligations against the service failures, concluding that while Tide could have acted with greater haste, the impact was limited and the £150 compensation was proportionate to the short delay and inconvenience caused.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website