Upheld: service failure, unclear communication, missed promotional opportunity due to account blocking delay complaint against Vanquis Bank Limited

Decision detail

Summary

Miss J's credit card was fraudulently used and blocked by Vanquis. After the disputed transaction was resolved in her favour, Vanquis took two months to unblock the account due to unclear communication about required information. During this delay, a balance transfer promotion expired, preventing Miss J from attempting to transfer balances from other credit cards at a promotional rate. Miss J sought compensation for the lost opportunity and the distress caused. The ombudsman upheld the complaint and ordered £300 compensation for distress and inconvenience, finding that while Vanquis could not retroactively apply the expired promotion, the delay was attributable to their poor communication.

The Ombudsman's reasoning

The ombudsman agreed with the investigator that Vanquis failed to communicate clearly about what was required to unblock Miss J's account, contributing to a two-month delay. This delay caused Miss J to miss the balance transfer promotion deadline. While the ombudsman acknowledged Miss J's disappointment and that she lost the opportunity to attempt a balance transfer, compensation should reflect the lost opportunity rather than speculative interest savings, as balance transfer acceptance is not guaranteed. The £300 compensation reflects both the distress and inconvenience caused and the additional time and effort Miss J had to expend.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website