Not upheld: failure to protect from gambling harm; refusal to block gambling-related transactions complaint against Lloyds Bank PLC

Decision detail

Summary

Ms E complained that Lloyds Bank PLC failed to protect her from gambling harm despite knowing of her gambling addiction from a previous request in January 2024. Between October and November 2025, Ms E made numerous gambling payments to entity K via faster payments through open banking, and requested Lloyds refund these losses and block payments to K. Lloyds explained it could not block faster payments as they lack merchant codes and operate through open banking, and offered gambling blocks, card freeze options, and external support signposting. The ombudsman found that Ms E had actively circumvented the gambling block by choosing to use K, that Lloyds could not technically block such payments, and that Lloyds had provided appropriate support. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that while Lloyds was aware of Ms E's gambling vulnerability, it could not have technically blocked the payments to K because they were made via faster payments through open banking, which do not have merchant codes and cannot be intercepted by standard gambling blocks. The ombudsman noted that Ms E was aware of the gambling block mechanism and actively circumvented it by choosing to use K, demonstrating personal responsibility for her spending decisions. Lloyds provided appropriate support including offering gambling blocks, card freeze options, and signposting to external support organisations. The ombudsman concluded that banks cannot be held responsible for authorised payments made for legitimate activities such as gambling, and that customers bear primary responsibility for addressing harmful gambling behaviour.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website