Partially upheld: unauthorized transactions dispute and misinformation regarding temporary credit complaint against Barclays Bank UK PLC

Decision detail

Summary

Miss W complained that Barclays declined her fraud claim for transactions to gambling merchant L totalling just under £1,300 and misinformed her about a temporary £790 pre-credit that was later debited, causing her account to go overdrawn. The ombudsman found the disputed transactions were authorized based on correct card details, IP address evidence, and merchant information matching Miss W's details. While Barclays acted reasonably in providing and reclaiming the pre-credit, they provided contradictory information about whether Miss W would receive credit and failed to communicate when the debit would occur. The ombudsman upheld the complaint in part, finding Barclays not liable for the overdraft but awarding £75 compensation for the inconvenience and distress caused to a vulnerable customer.

The Ombudsman's reasoning

The ombudsman found that the disputed transactions were authorized based on: correct card details being used, IP address evidence linking transactions to Miss W's location, the merchant having Miss W's correct personal information, Miss W receiving significant credits from the merchant without questioning them, and Miss W having other gambling spend on her account. The ombudsman concluded Miss W likely noticed the £790 credit given her daily account monitoring and previous experience with pre-credits. The ombudsman found Miss W understood the credit would be reclaimed if the claim was unsuccessful, having been told this twice and having experienced it before. However, the ombudsman acknowledged Barclays provided contradictory information about pre-credit and failed to communicate about the debit, causing inconvenience and frustration, particularly given Miss W's vulnerability. The ombudsman could not hold Barclays liable for the overdraft itself but awarded compensation for the distress caused.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website