Not upheld: Card / payment disputes complaint against Metro Bank PLC

Decision detail

Summary

F, a limited company represented by its director Mr J, complained that Metro Bank PLC wrongfully declined to refund disputed transactions totalling £1,292.29 made from its account between 8 and 10 May 2025. Mr J claimed he did not make these transactions and reported them as fraudulent. Metro Bank declined the refund after investigating. The ombudsman found that the genuine card in Mr J's possession and the correct PIN were used for all transactions, and that Metro Bank correctly sent the PIN to Mr J's registered address. Despite Mr J's inability to explain how an unauthorised person could have obtained both the card and PIN, the ombudsman concluded the transactions were authorised in some way and upheld Metro Bank's decision not to refund the money.

The Ombudsman's reasoning

Under the Payment Services Regulations 2017, the starting point is that the customer is liable for authorised payments and the bank is liable for unauthorised payments. The ombudsman found that the genuine card and correct PIN were used for all transactions. While Mr J claimed he did not receive the PIN, the ombudsman was satisfied it was correctly sent to his registered address and was the only PIN that could have been used. The ombudsman considered the possibility that someone known to Mr J made the transactions without his knowledge, but found this would require taking the card from his possession, using it with the PIN, and returning it without Mr J noticing. Given Mr J's inability to provide any credible explanation for how an unauthorised individual could have made these transactions, the ombudsman found it fair for Metro Bank to treat them as authorised in some way by Mr J.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website