Not upheld: rejected payments / account administration error complaint against Barclays Bank UK PLC

Decision detail

Summary

Mr T complained that Barclays rejected his debit card payment for car insurance in October 2025 due to an incorrectly recorded postcode, requiring him to visit a branch to resolve the issue. Barclays initially offered £70 compensation, which Mr T rejected and counter-suggested £150. Barclays agreed to £150 and closed the complaint, but Mr T later requested an additional £250. The ombudsman found that £150 was fair compensation reflecting the inconvenience and embarrassment caused, as Mr T had considered all factors when suggesting this amount. Earlier payment rejections were determined to be due to legitimate fraud concerns rather than postcode errors, so no additional compensation was warranted.

The Ombudsman's reasoning

The ombudsman found that £150 was fair compensation because it reflected the inconvenience of visiting branch, parking costs, and embarrassment of payment rejection. Mr T had considered these factors when suggesting the £150 figure and indicated it covered everything. The complaint handler clearly explained the complaint would be closed on that basis. Earlier payment rejections were not caused by postcode errors but by legitimate fraud concerns, so no additional compensation was warranted for those incidents.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website