Partially upheld: Direct Debit refund claim and failure to make reasonable adjustments for vulnerable customer complaint against Bank of Scotland plc trading as Halifax

Decision detail

Summary

Ms H claimed refunds for nine Direct Debits totalling £21,208.58 taken between 2017 and 2023 under the Direct Debit Guarantee, stating they were taken in error. She informed Halifax she could not communicate by phone due to mental health conditions. Halifax requested clarification of her claim but Ms H provided no further details, only later telling the FOS her claim was based on lack of informed consent due to mental health issues at the time. The ombudsman found Halifax was entitled to ask reasonable questions about such historic claims and decline the refund when Ms H failed to provide details, but upheld her complaint about customer service failures, as Halifax repeatedly attempted phone contact despite her stated inability to communicate this way, causing unnecessary distress. Halifax was ordered to pay £300 compensation.

The Ombudsman's reasoning

The ombudsman found that the Direct Debit Guarantee does not entitle customers to immediate refunds without reasonable questions being asked, particularly where claims involve historic payments spanning several years and multiple companies. Ms H failed to provide the basis for her claim when Halifax asked for clarification, only later telling the FOS about lack of informed consent. However, Halifax failed to make reasonable adjustments by repeatedly attempting phone contact despite Ms H's explicit notification of mental health difficulties preventing phone communication, causing unnecessary distress and inconvenience.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website