Not upheld: declined transactions and card malfunction; communication and handling of complaint complaint against Halifax

Decision detail

Summary

Mrs C complained that Halifax unfairly declined her credit card transactions while she was travelling abroad in November 2025, leaving her unable to use her card and causing financial loss and distress. The card stopped working after three incorrect PIN attempts on 17 November 2025 triggered a security lock. Mrs C experienced a bereavement while overseas and was unable to resolve the issue quickly due to limited access to banking infrastructure abroad. Halifax explained the PIN lock was a standard security feature and provided resolution options, refunding a £0.30 fee. The ombudsman did not uphold the complaint, finding that Halifax acted fairly by applying standard security measures and that communication difficulties were an unfortunate consequence of being overseas rather than a Halifax failing.

The Ombudsman's reasoning

The ombudsman found that Halifax's system records were consistent and supported their explanation that the PIN lock resulted from three incorrect PIN attempts, which is a standard security feature. The ombudsman was not persuaded by Mrs C's dispute of the incorrect PIN entries, finding no evidence of system error. While acknowledging Mrs C's difficult circumstances, including being overseas and experiencing bereavement, the ombudsman concluded that Halifax was not obliged to suspend standard security measures based on customer location, and that communication difficulties were an unfortunate consequence of being overseas rather than a Halifax failing. The ombudsman also found that costs incurred through alternative financial arrangements were indirect consequences rather than direct and foreseeable results of any Halifax failing.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website