Partially upheld: Service failures generally complaint against First Rate Exchange Services Ltd

Decision detail

Summary

Mr S complained that First Rate Exchange Services failed to refund a cash withdrawal on 24 May 2025, claiming the cash was not dispensed despite his account being debited. The firm had raised a chargeback which was successfully defended by the ATM owner. The ombudsman found that electronic ATM records clearly showed the cash was correctly dispensed, so no refund was justified. However, the ombudsman upheld the complaint regarding poor service, as the firm failed to provide clear explanation of dispute processes, gave misleading information about the likely outcome, and caused unnecessary delays requiring frequent contact. The ombudsman ordered compensation of £150 for the distress and inconvenience caused.

The Ombudsman's reasoning

Under Payment Services Regulations 2017 section 75, it is for the payment service provider to prove the payment transaction was correctly executed. First Rate Exchange Services provided electronic ATM records showing Mr S's cash was dispensed correctly, with no corresponding discrepancy that would indicate a failed transaction. The subsequent successful withdrawal by another customer further supports the ATM was functioning properly. However, the firm provided poor service by failing to clearly explain the dispute process, giving misleading information about the likely outcome, and causing unnecessary delays that required Mr S to make frequent contact.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website