Not upheld: fraud liability and refund processing delays complaint against Nationwide Building Society

Decision detail

Summary

Miss B complained that Nationwide Building Society failed to prevent fraudulent transactions totalling £1,522.98 to a food delivery service and delayed refunding the money, causing her to miss a council tax payment. Although Nationwide refunded the fraudulent amount, Miss B argued the bank should have detected the unusual spending pattern earlier and processed the refund faster than 4 August. The ombudsman found that while the transaction pattern was extraordinary, it is not feasible for banks to monitor accounts at such a granular level, and the refund timeline complied with Nationwide's terms and conditions. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that while the pattern of spending was unusual, it is not feasible for banks to monitor accounts at such a granular level even for previous fraud victims, as this would hinder normal banking operations. Regarding the refund timeline, since Miss B reported the fraud at 18:00 on 31 July (after the working day had ended), Nationwide's terms and conditions stating refunds would be made 'normally by the end of the next working day' meant the 4 August refund was compliant. The ombudsman acknowledged Miss B was given a misleading impression but concluded Nationwide did not unduly delay the refund.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website