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

Decision detail

Summary

Mr M complained that Tesco Bank's letter advising his credit card account had exceeded the limit was unfair and threatening, and that the over-limit position resulted from interest charges rather than his spending. The ombudsman reviewed the account and found that a £9,500 transaction left only £75 available credit, and that Mr M made only the minimum payment of £95, triggering £292.09 in interest as warned on his statement. The ombudsman upheld Tesco Bank's position that interest was correctly applied under the credit agreement terms and that the letter, while distressing to Mr M, was factually accurate and not unfairly threatening. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that Tesco Bank had not made an error in applying interest of £292.09 as this was in accordance with the terms and conditions of the credit agreement which Mr M had agreed to. The letter advising of the over-limit position, while Mr M found it distressing, was factually accurate and reflected the position on the account. The language used was not intended to cause distress and merely set out what was required to bring the account back in line with the credit agreement terms. The ombudsman acknowledged Mr M's distress but found no unfair treatment or error by the firm.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website