Partially upheld: payment processing delay and poor customer service complaint against Starling Bank Limited

Decision detail

Summary

Mr K complained to Starling Bank after a £665,000 transfer request was delayed by one working day due to security checks, causing him to miss one day's interest (£122.06) on the receiving account. Mr K also complained about poor quality chat service, inadequate app notifications, and Starling's product notification policy. Starling upheld the chat quality complaint and awarded £50 compensation, but rejected other aspects. The FOS investigator recommended increasing compensation to £150 and providing a written apology, but rejected the interest reimbursement claim. The Ombudsman upheld the complaint partially, finding the security procedures reasonable but the chat service deficient, and confirmed the £150 compensation was appropriate while rejecting the interest claim.

The Ombudsman's reasoning

The Ombudsman found that Starling's security checks and payment hold were reasonable and standard procedure given the large transaction amount, and that Mr K should have reviewed Starling's payment policy or contacted them earlier given the importance of same-day dispatch. However, the Ombudsman upheld complaints regarding the quality of chat service, including misleading information about expediting the payment and the abrupt ending of the conversation. The Ombudsman rejected the claim for interest reimbursement as there was no guarantee of same-day processing, and found the app information combined with T&Cs was sufficient. The Ombudsman agreed that £150 compensation was commensurate with the service failures identified.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website