Not upheld: debt write-off request refusal and account management errors complaint against Barclays Bank UK PLC trading as Tesco Bank

Decision detail

Summary

Mr D requested that Tesco Bank write off his credit card balance, providing medical evidence and income/expenditure information showing no surplus income. Tesco Bank declined the request and required a payment arrangement instead. Mr D complained that Tesco Bank had not properly considered his financial situation and also that it had transferred his debt to a collection agency despite confirming a 30-day hold. Tesco Bank acknowledged service failures and paid £150 compensation. The ombudsman found that Tesco Bank had fairly followed its review process for the write-off request and was entitled to decline it based on its own criteria, and that the compensation for service errors was fair and reasonable.

The Ombudsman's reasoning

The ombudsman found that Tesco Bank followed its processes correctly and fairly reviewed Mr D's write-off request. Although Tesco Bank could not disclose specific business-sensitive criteria for declining the request, it confirmed thorough review of all information provided and senior management involvement in the decision. The fact that other creditors agreed to write-offs does not obligate Tesco Bank to do so, as each creditor has its own criteria. Regarding service failures, the £150 compensation was deemed fair and reasonable for the distress caused by the improper debt transfer and the inconvenience of the unanswered letter.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website