Upheld: service failure - repeated direct debit processing failures and poor complaint handling complaint against TSB Bank plc
Financial Ombudsman decision DRN-6094479 of 2026-05-28T00:00:00+00:00. service failure - repeated direct debit processing failures and poor complaint handling complaint against TSB Bank plc. Outcome: Upheld.
Decision detail
| Reference | DRN-6094479 |
|---|---|
| Decision date | 2026-05-28T00:00:00+00:00 |
| Firm | TSB Bank plc |
| Product | credit card |
| Claim type | service failure - repeated direct debit processing failures and poor complaint handling |
| Outcome | Upheld |
| Remedy | TSB Bank plc directed to: (1) Pay Ms P £500 in total compensation; (2) Ensure any adverse information reported to credit reference agencies as a result of the payment issues is removed; (3) Remove any fees and charges unnecessarily applied to the account as a result of the payment issues; (4) Consider reimbursement of any associated costs Ms P incurred upon receipt of evidence. |
Summary
Ms P transferred a credit card balance to TSB in May 2025 and set up a direct debit to pay it, but the direct debits failed repeatedly in June, July, August, September, and October 2025. Despite raising complaints and receiving assurances from TSB that the issue was resolved, the same problems persisted, requiring Ms P to make numerous contact attempts and resulting in payment chaser letters threatening credit file damage. TSB initially offered £200 compensation, later increased to £300, but Ms P and the investigator considered this insufficient given the months-long disruption and distress. The Ombudsman upheld the complaint and ordered TSB to pay £500 in compensation, remove adverse credit reporting, and eliminate unnecessary charges.
The Ombudsman's reasoning
TSB accepted responsibility for multiple errors causing direct debit failures over several months. Despite repeated assurances from TSB that issues were resolved, the same problems persisted, requiring Ms P to make numerous contact attempts. The prolonged nature of the issue (spanning every month from May to October), combined with the distress caused by arrears letters threatening credit file damage, the inconvenience of multiple failed payments, and the eventual need to transfer the balance away from TSB, justified compensation at the higher end of the FOS guidelines for issues causing considerable distress and significant inconvenience lasting many weeks or months.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| TSB Bank plc, all decisions | 3,552 | 26% |
Source
Read the original decision on the Financial Ombudsman Service website