Not upheld: disputed transactions (unauthorised payments) and poor customer service complaint against Barclays Bank UK PLC

Decision detail

Summary

Mr N complained that Barclays Bank UK PLC declined to refund £1,937.53 in disputed transactions made to an overseas gambling merchant between May and June 2025, which he claimed were made by his cousin without permission. Mr N also complained about poor customer service, including misleading information about receiving a temporary refund and numerous failed callbacks. Barclays had already paid £475 compensation for service failures. The ombudsman found that by intentionally providing his cousin with access to his phone, mobile banking, and biometric authentication, Mr N breached his security obligations under the Payment Services Regulations 2017, entitling Barclays to hold him liable for the transactions. The ombudsman upheld the £475 compensation as appropriate and did not require any further action from Barclays.

The Ombudsman's reasoning

Under the Payment Services Regulations 2017, a payment service provider can hold a consumer liable for unauthorised transactions if the consumer intentionally breached their obligations to keep security credentials safe. The ombudsman found that by giving his cousin access to his phone, mobile banking, and Apple Pay with biometric authentication, Mr N intentionally breached his security obligations. Therefore, Barclays was entitled to hold Mr N liable regardless of whether he or his cousin actually made the transactions. Regarding customer service, whilst the ombudsman acknowledged Barclays provided poor service and gave false hope through misleading information about temporary refunds, the £475 compensation already paid was deemed appropriate and fair in the circumstances.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website