Partially upheld: unauthorised transaction handling and claims investigation complaint against Lloyds Bank Plc

Decision detail

Summary

Mrs H and Mr H complained about Lloyds' handling of an unauthorised transaction of £55.72 on their account. Lloyds initially declined to refund the transaction but subsequently refunded it as a gesture of goodwill and offered £30 compensation. The complainants rejected this, arguing Lloyds had not properly investigated or believed them. The ombudsman found that while Lloyds' initial handling was reasonable and there was no evidence of card cloning or technical fault, the matter could have been resolved sooner. The ombudsman partially upheld the complaint and determined that the £30 award was fair and reasonable compensation for the inconvenience caused by the delay in resolution.

The Ombudsman's reasoning

The ombudsman found that Lloyds' initial decision to decline the refund was reasonable based on the evidence available to it at the time. There was no evidence of card cloning or technical fault. However, the ombudsman agreed that the matter could have been resolved sooner, and Lloyds' subsequent refund and offer of £30 was appropriate recognition of the inconvenience caused by the delay. The ombudsman noted that awards are intended to recognise upset caused by an error, not to punish the business, and that Lloyds refunded the transaction despite no evidence of fault on its part.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website