Not upheld: failure to intervene in gambling spending / irresponsible lending complaint against Bank of Scotland plc trading as Halifax

Decision detail

Summary

Mr P complained that Halifax failed to intervene when he spent large amounts gambling between April and September 2019, funded by loans, credit cards, and stolen money from his employer. Mr P argued Halifax should have recognised his gambling problem from transaction patterns and intervened, particularly given his previous mortgage default due to gambling. The ombudsman found that while Halifax was aware Mr P gambled, the firm lacked specific intervention tools in 2019 (card block not available until November 2019) and that intervention would not have stopped Mr P's compulsive spending, as evidenced by his willingness to steal from his employer and only stopping when the theft was discovered. The complaint was not upheld, and no refund was ordered.

The Ombudsman's reasoning

The ombudsman found that while Halifax was aware of Mr P's gambling, the firm lacked adequate intervention tools in 2019 (card block not available until November 2019). Critically, the ombudsman concluded that even if Halifax had intervened, it would not have stopped Mr P's compulsive spending, evidenced by his willingness to steal from his employer to fund gambling and his only stopping when the theft was discovered. The ombudsman noted that Halifax had previously challenged Mr P about gambling in 2015 without effect, and that any conversation or card block would not have prevented access to cash withdrawals.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website