Not upheld: charges and interest application; alleged unclear communication regarding promotional rates complaint against Barclays Bank UK PLC trading as Tesco Bank

Decision detail

Summary

Mr B complained that Tesco Bank charged him a money transfer fee and interest on a £14,500 transfer made on 8 July 2025, believing it qualified for a 0% promotional rate. Tesco Bank explained that no 0% rate was available for money transfers on that date, though a 0% rate existed for balance transfers. Mr B argued the app was unclear and that Tesco Bank should have made it more obvious that the promotional rate did not apply to money transfers, citing his previous successful 0% transactions. The ombudsman reviewed the app screenshot and found the information clearly distinguished between balance transfer and money transfer options, with 'standard rates will apply' being sufficiently clear language. The ombudsman concluded that Tesco Bank did not breach Consumer Duty and did not uphold the complaint.

The Ombudsman's reasoning

The ombudsman applied the FCA's Consumer Duty framework, which requires firms to act in good faith, avoid foreseeable harm, and enable consumer objectives through clear communication and product design. The ombudsman reviewed the app screenshot and found that the wording clearly distinguished between balance transfers and money transfers, with the heading explicitly stating which type of transfer was associated with the 0% promotional offer. The phrase 'standard rates will apply' was found to be sufficiently clear to inform a reasonable person that the usual rate of interest applies rather than a promotional rate. The ombudsman noted that Mr B had successfully completed 0% transfers previously using the same app layout, suggesting the information was clearly presented. The ombudsman concluded that Tesco Bank did not breach Consumer Duty and that the information provided was neither misleading nor ambiguous.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website