Not upheld: Service failures generally complaint against Nationwide Building Society

Decision detail

Summary

Mr M complained that Nationwide allowed multiple gambling payments totalling £5,000 to leave his account despite an active gambling block being in place. Nationwide explained that the block only prevented card payments and could not block Open banking transactions, which operate through a different payment mechanism. The ombudsman found that the block worked as intended, the limitations were disclosed when applied, and Mr M's account activity did not show signs of financial difficulty requiring Nationwide to intervene. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman applied the Payment Services Regulations principle that payment service providers are expected to process authorised payments. Most providers do not monitor accounts for gambling transactions unless the customer discloses a problem or shows clear signs of financial difficulty. Mr M's account activity did not demonstrate financial difficulty - the account remained in positive balance and spending appeared manageable. The gambling block worked as intended for card payments; Open banking transactions operate differently and are not caught by such blocks. The limitations of the block were disclosed when Mr M applied it via the mobile app. While the chat advisor empathised with Mr M, this occurred before any investigation and did not constitute an admission of liability. Detailing what a block cannot prevent could educate compulsive spenders on circumvention methods, causing further harm.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website