Not upheld: Account administration errors complaint against Barclays Bank UK PLC trading as Tesco Bank

Decision detail

Summary

Mr C complained that Tesco Bank failed to collect a direct debit payment, causing his card to be blocked and resulting in embarrassment when attempting to use it in a supermarket. Mr C had amended his direct debit on 28 November 2025 (one day after his statement was issued) from minimum payment to full statement balance, but the new instruction would not take effect until the next statement. Tesco displayed a clear message informing Mr C that the direct debit would not be in place until the next statement and that he still needed to make a payment by the due date of 22 December 2025. When Mr C failed to make the payment, Tesco blocked his card as a precaution against increased risk of non-payment, which was permitted under the account terms. The ombudsman found that Tesco acted fairly and in accordance with the agreed terms, and therefore did not uphold the complaint.

The Ombudsman's reasoning

The ombudsman found that Tesco's message to Mr C was clear and unambiguous, stating the direct debit would not take effect until the next statement and that Mr C still needed to make a payment by the due date. The ombudsman was satisfied this was Tesco's normal procedure, evidenced by the same process occurring when Mr C later amended the direct debit back to minimum payment. The card block was justified under the account terms as a response to significantly increased risk of non-payment, and the 72-hour lifting period was communicated to Mr C. Therefore, Tesco acted fairly and within the agreed terms.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website