Partially upheld: service failure / payment settlement error / failure to update bank account details complaint against Teya Solutions Limited
Financial Ombudsman decision DRN-6007009 of 2026-04-08T00:00:00+00:00. service failure / payment settlement error / failure to update bank account details complaint against Teya Solutions Limited. Outcome: Partially upheld.
Decision detail
| Reference | DRN-6007009 |
|---|---|
| Decision date | 2026-04-08T00:00:00+00:00 |
| Firm | Teya Solutions Limited |
| Product | Other regulated product |
| Claim type | service failure / payment settlement error / failure to update bank account details |
| Outcome | Partially upheld |
| Remedy | Teya Solutions Limited directed to pay D £422.45 (representing transaction settlements over a seven-day period from the date of the first transaction in May 2024), less any applicable fees. |
Summary
Company D switched merchant acquiring services to Teya Solutions Limited in May 2024. Teya's agent promised to update D's bank account details but failed to do so, resulting in transaction settlements being paid into the previous business owner's account for nine months. D did not discover the error until February 2025, by which time over £13,000 in settlements had been misdirected. The ombudsman upheld the complaint in part, finding Teya responsible for the error but applying loss mitigation principles. The ombudsman determined that D's director should have monitored the bank account and noticed the missing payments within seven days, and therefore limited compensation to the transaction settlements from the first seven days (£422.45) rather than the full amount claimed.
The Ombudsman's reasoning
Teya made an error by failing to update D's bank account details and link it to the existing terminal, resulting in settlements being paid to the wrong account. However, the ombudsman applied the principle of loss mitigation, finding that Mr T should have monitored D's bank account regularly and noticed the absence of transaction settlements far sooner than nine months. A reasonable business owner would have checked their account within seven days of onboarding. Therefore, compensation was limited to the seven-day period rather than the full £13,000, as Mr T failed to take reasonable steps to mitigate the impact of Teya's error.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Teya Solutions Limited, all decisions | 1 | 50% |
| Other regulated product, all decisions | 52,408 | 30% |
Source
Read the original decision on the Financial Ombudsman Service website