Not upheld: direct debit guarantee scheme claim handling complaint against Triodos Bank UK Limited

Decision detail

Summary

Mr F complained that Triodos Bank unreasonably refused to immediately refund an unauthorised direct debit payment of approximately £150 under the direct debit guarantee scheme, instead requesting additional evidence that the payment was taken in error. Triodos Bank maintained that it needed to establish an error had occurred before processing the claim. The ombudsman found that the bank's request for additional information was reasonable and not unfair, as the guarantee scheme specifically requires confirmation of an error. The complaint was not upheld, particularly as the merchant subsequently refunded the payment anyway.

The Ombudsman's reasoning

The ombudsman found it was not unreasonable for Triodos Bank to request additional evidence to establish that an error had occurred, as the direct debit guarantee scheme specifically applies when an error has occurred. Although Mr F believed an immediate refund should have been given, the bank's request for clarification was proportionate and did not ultimately prevent Mr F from receiving a refund, as the merchant refunded the payment shortly afterwards.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website