Not upheld: Travel / life insurance claim disputes complaint against Barclays Bank UK Plc

Decision detail

Summary

Mr E complained that Barclays failed to intervene despite him making over £317,000 in gambling transactions between 2022 and 2025, resulting in losses of over £20,000. Barclays closed his account in April 2025 and offered £400 compensation. The ombudsman found that while Barclays could have done more to support Mr E, there was no evidence that earlier intervention would have prevented his losses, as Mr E managed his account well, did not disclose difficulties, and appeared to win back significant amounts. The ombudsman upheld Barclays' £400 offer as fair compensation and did not require further action.

The Ombudsman's reasoning

The ombudsman acknowledged that Barclays could have intervened by explaining how to block gambling payments or signposting to support organisations. However, the ombudsman was not persuaded that such intervention would have prevented Mr E's losses given his pattern of gambling and the fact that he appeared to win back a significant part of what he spent. The ombudsman noted that Mr E managed the account well within its limits, did not disclose difficulties to Barclays, and there was no clear evidence of vulnerability. The ombudsman concluded that compensation should reflect the impact of Barclays's actions, not punish the business, and that £400 was fair in the circumstances.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website