Not upheld: payment error recovery and timeliness complaint against Lloyds Bank PLC
Financial Ombudsman decision DRN-6138202 of 2026-04-14T00:00:00+00:00. payment error recovery and timeliness complaint against Lloyds Bank PLC. Outcome: Not upheld.
Decision detail
| Reference | DRN-6138202 |
|---|---|
| Decision date | 2026-04-14T00:00:00+00:00 |
| Firm | Lloyds Bank PLC |
| Product | current account |
| Claim type | payment error recovery and timeliness |
| Outcome | Not upheld |
| Remedy | None - complaint not upheld |
Summary
Mr G made a faster payment to the wrong payee on 26 July 2025 and reported the error to Lloyds shortly after. Lloyds promptly contacted the payee's bank at 11:20 am requesting recovery on a best endeavours basis. The payee's bank confirmed on 15 August that recovery was impossible due to insufficient funds in the payee's account. The Ombudsman found Lloyds acted promptly and reasonably throughout the process and did not uphold the complaint, as the failure to recover funds was not attributable to any delay by Lloyds.
The Ombudsman's reasoning
The Ombudsman found that Lloyds acted promptly by contacting the payee's bank within 37 minutes of Mr G reporting the error. The bank followed a reasonable process by requesting best endeavours recovery. The failure to recover funds was due to insufficient funds in the payee's account, not due to any delay or unreasonable conduct by Lloyds. Lloyds also provided Mr G with information about alternative recovery options.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Lloyds Bank PLC, all decisions | 19,800 | 16% |
Source
Read the original decision on the Financial Ombudsman Service website