Not upheld: unauthorised payment - late reporting complaint against Lloyds Bank PLC

Decision detail

Summary

R complained that Lloyds refused to refund an unauthorised payment of £6,782.16 from June 2024 that was discovered and reported in October 2025 (16 months later). Lloyds refused the refund citing its terms and conditions requiring disputes to be raised within 13 months, and noting that R had access to online banking and regular statements throughout the period. The ombudsman applied PSR 2017 Regulation 74 and found that R ought reasonably to have noticed the significant transaction sooner and reported it within the required timeframe. The complaint was not upheld, and the £35 compensation offered by Lloyds for service delays was deemed appropriate.

The Ombudsman's reasoning

The ombudsman applied PSR 2017 Regulation 74, which requires payment service users to notify their provider as soon as practically possible and no later than 13 months after the debit date. The ombudsman found that R ought reasonably to have noticed the significant transaction (£6,782.16) sooner, particularly given that R had regular access to online banking and statements. The ombudsman rejected R's argument that the time limit does not relieve Lloyds of its duty to prove authorisation, finding that the regulatory framework supports Lloyds' position. The ombudsman also determined that the £35 compensation offered by Lloyds was appropriate as it related only to service delays, not to the merits of the complaint.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website