Partially upheld: service failure, poor communication, failure to process cancellation requests, complaint handling failure complaint against Barclays Bank UK PLC

Decision detail

Summary

Mr W complained to Barclays about its handling of his attempted current account switch and refusal to honour a £200 switch incentive. His application for a standard account was declined based on his credit file, and he was advised to visit a branch. At the branch, staff opened a basic current account, which is ineligible for the switch incentive under Barclays' terms. Mr W was not informed of this ineligibility and made three branch visits, during which he experienced poor communication, delayed cancellation processing, and call handling issues. The ombudsman upheld the complaint regarding poor service and awarded £150 compensation for distress and inconvenience, but rejected the claim for the £200 incentive as Mr W was genuinely ineligible under the offer terms.

The Ombudsman's reasoning

The ombudsman found that while Barclays' terms clearly stated that basic current accounts are ineligible for the switch incentive and the switch must be completed via the app, Mr W was not directed by Barclays to open a basic account but rather was advised to visit a branch after his application was declined. The ombudsman determined that Mr W's ineligibility for the incentive was due to his credit file assessment, not Barclays' failings. However, the ombudsman agreed that Barclays provided poor service through unclear communications, giving Mr W forms without explanation, failing to process cancellation requests promptly, and providing poor call handling. The ombudsman concluded that compensation for distress and inconvenience was warranted, but the switch incentive should not be paid as Mr W was genuinely ineligible under the terms.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website