Not upheld: refund processing and duplicate payment handling complaint against NewDay Ltd

Decision detail

Summary

X complained that NewDay failed to refund him correctly after duplicate payments were made on his credit card account. On 5 and 10 August 2025, two identical payments of £832.55 were made, and X later requested a refund of the duplicate payment. NewDay processed the refund by debiting the amount from X's card account, which X believed left him out of pocket. The ombudsman upheld NewDay's position, finding that the refund was processed correctly and that X had not suffered financial loss, as debiting the card was the appropriate mechanism for processing the refund of one of the two payments.

The Ombudsman's reasoning

The ombudsman determined that when X requested a refund of the duplicate £832.55 payment, NewDay correctly debited this amount from his card account. Since two payments had reduced the balance by £1,665.10 total, refunding half of that amount required the card to be debited accordingly. The ombudsman found no evidence that X suffered financial loss and noted that failing to debit the card would have amounted to giving X £832.55 for free, which would be unreasonable.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website