Upheld: service failure / delay in account management complaint against Zilch Technology Limited

Decision detail

Summary

Mr C complained that Zilch Technology Limited failed to promptly lift a block on his account after he settled his outstanding balance via bank transfer. Although Zilch had correctly informed Mr C that the bank transfer could take up to five working days, the firm subsequently delayed in removing the block even after the payment was received and cleared. Mr C had to contact Zilch multiple times over several days by phone and online chat to resolve the issue, during which his card continued to decline. Zilch upheld the complaint and paid £20 compensation, but the ombudsman found this inadequate given the inconvenience caused by the repeated contact attempts. The ombudsman instructed Zilch to pay an additional £55 compensation, bringing the total to £75.

The Ombudsman's reasoning

The ombudsman distinguished between the acceptable five-day bank transfer processing time (which was disclosed) and Zilch's subsequent failure to lift the block once payment was received. Zilch's own apology in its final response acknowledged this delay. The ombudsman found that Mr C's multiple contact attempts over several days to resolve the issue merited compensation beyond the initial £20 offer. While Mr C had alternative payment methods available (rejecting the £270 charge claim), the inconvenience of repeated contacts justified an increase in compensation to £75 total.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website