Not upheld: failure to monitor gambling transactions and provide support; account closure complaint against Barclays Bank UK Plc

Decision detail

Summary

Mr H complained that Barclays failed to monitor and prevent gambling transactions on his account and failed to offer support, instead closing his account when he disclosed his gambling addiction. Between 2020 and 2024, Mr H lost approximately £1,000,000 to gambling, with much of this occurring with overseas casinos using disguised merchant names. Although Barclays acknowledged they should have done more from July 2023 onwards, the ombudsman found that when Barclays contacted Mr H in October 2023, he confirmed he was fine, and he subsequently continued gambling and circumvented self-exclusion measures after recognizing his addiction. The ombudsman upheld Barclays' £350 compensation offer as fair and reasonable, finding that earlier intervention would not have prevented Mr H's gambling losses given his subsequent behavior.

The Ombudsman's reasoning

The ombudsman recognized that while gambling is a legal activity and banks have responsibilities to monitor accounts, the majority of Mr H's gambling was with overseas casinos that use disguised merchant names, making detection impractical. Although Barclays should have done more from July 2023, the ombudsman found that support would not have prevented Mr H's gambling because: (1) when Barclays attempted to contact him on 30 October 2023, he confirmed he was fine; (2) after recognizing his gambling issue, he continued to circumvent self-exclusion measures and use overseas casinos; and (3) he requested removal of the gambling block. The account closure was not unfair as it was not based on his gambling vulnerability, and Barclays' £350 compensation was deemed fair and reasonable.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website