Not upheld: Card / payment disputes complaint against Barclays Bank UK PLC

Decision detail

Summary

Mr S complained that Barclays Bank UK PLC failed to refund payments made under the direct debit guarantee, claiming the payments were taken without authority. The direct debits began in 2019 but Mr S did not notice them until May 2025. Barclays requested more information to determine whether the claim fell within the direct debit guarantee's scope, which only covers payment errors, not contractual disputes. The ombudsman found Barclays' request for clarification was reasonable and fair given the circumstances, and did not hold the bank responsible for the originator's failure to provide information. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that the direct debit guarantee only covers mistakes in payment, not contractual disputes. While Mr S claimed the payments were taken without authority, Barclays was entitled to request more information before processing a refund to ensure the claim was covered by the guarantee. Given the high number of direct debits and the six-year gap between when payments began and when Mr S noticed them, the bank's request for clarification was reasonable and fair. The ombudsman did not hold Barclays responsible for the originator's failure to provide information to Mr S.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website