Not upheld: service failure - delayed response to customer inquiry via mobile messaging service complaint against Lloyds Bank PLC

Decision detail

Summary

Dr M complained about Lloyds Bank's delayed response via mobile messaging when their credit card was blocked abroad after multiple incorrect PIN attempts. Dr M sought refund of £257.56 in additional costs incurred when they had to purchase an expensive insurance policy instead of using their credit card for a car rental security deposit. Lloyds acknowledged the excessive three and a half hour wait time and paid £75 compensation. The ombudsman found this compensation fair and reasonable but rejected the refund claim because the card block resulted from Dr M's own actions, not Lloyds' failure, and there was insufficient evidence that a faster response would have prevented the additional cost.

The Ombudsman's reasoning

The ombudsman acknowledged that Lloyds' response time of three and a half hours was excessive and that £75 compensation was appropriate for this service failure. However, the ombudsman rejected the claim for refund of the £257.56 additional costs because: (1) the card block was caused by Dr M's own actions (entering incorrect PIN multiple times), not by Lloyds; (2) there was no evidence of how long Dr M waited before deciding to purchase the insurance policy; (3) there was no evidence the insurance policy was not required in any event; and (4) the website did not promise instant responses or specify a particular timescale, only that responses would be provided 'as soon as possible'. The ombudsman found that information about unlocking the PIN via ATM was available on Lloyds' website.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website