Partially upheld: payment processing delay and refund request handling complaint against Rightcard Payment Services Limited trading as LemFi

Decision detail

Summary

Mr A complained that LemFi delayed processing an international payment to Pakistan and acted unfairly by not providing immediate processing or a refund when requested. The payment remained pending for five days before being confirmed unsuccessful and refunded, after which it successfully processed on a second attempt. LemFi offered £25 compensation. The ombudsman found that LemFi processed the payment immediately and escalated the issue to its overseas partner bank, which experienced system downtime beyond LemFi's control. LemFi could not fairly refund funds it no longer controlled while the overseas bank was unresponsive. The complaint was partially upheld, with the £25 compensation deemed fair for a minor communication shortfall.

The Ombudsman's reasoning

Once Mr A instructed LemFi to make the payment, it was immediately processed and funds left LemFi's control. LemFi escalated to its overseas partner bank immediately upon Mr A's contact. The terms and conditions exclude liability for circumstances outside LemFi's reasonable control, including partner bank system failures. LemFi could not fairly refund Mr A while the overseas bank was unresponsive and it was unclear whether the recipient had been credited. However, a shortfall in service was identified regarding communication.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website