Upheld: Service failures generally complaint against Barclays Bank UK PLC trading as Tesco Bank

Decision detail

Summary

Mr C opened an Instant Access ISA with Tesco Bank but was unable to withdraw funds without first signing and returning a form. He complained that the requirement was not made sufficiently clear before opening the account. The ombudsman upheld the complaint, finding that Tesco Bank failed to provide adequate, timely information about the form requirement despite the account being marketed as 'instant access'. Although Tesco Bank had the right to conduct KYC and CDD checks, the relevant terms were unclear, not prominent, and presented after the customer had already committed to a deposit. The ombudsman ordered Tesco Bank to pay £50 compensation for the avoidable distress and inconvenience caused.

The Ombudsman's reasoning

While Tesco Bank has the right to conduct KYC and CDD checks, it has a duty to enable customers to achieve their financial objectives and provide information needed for informed decisions. The term 'instant access' reasonably suggests immediate access to deposited funds. The information about the form requirement was not sufficiently clear, prominent, or timely - it appeared after the customer had already committed to a deposit amount. The terms and conditions were ambiguous about what 'checks' meant, and a customer could reasonably believe the checks were completed after the identity verification page. Tesco Bank failed to equip Mr C with the information needed to make a properly informed decision.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website