Not upheld: transaction blocking and security procedures complaint against Kroo Bank Ltd

Decision detail

Summary

Mr M complained that Kroo Bank Ltd blocked an inbound payment of £115.20 from a legitimate UK business for security checks on 23 October 2025, causing him inconvenience and stress. Kroo defended its action as a responsible banking practice required by regulation, with the checks provided for in the account terms and conditions. The ombudsman found that while security checks can occasionally inconvenience customers, Kroo acted fairly and the payment was released within six hours with no unreasonable delay, therefore the complaint was not upheld.

The Ombudsman's reasoning

Businesses like Kroo are expected to have security measures and procedures in place to safeguard customer accounts and prevent fraud. While the ombudsman acknowledged that legitimate payments can occasionally be stopped causing inconvenience, the key consideration was whether there was unreasonable delay or detrimental impact. Since the payment was processed in under six hours during early morning hours, there was no unreasonable delay that would warrant compensation.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website