Not upheld: Account administration errors complaint against TSB Bank plc

Decision detail

Summary

Miss B complained that TSB incorrectly handled direct debits following her account switch using CASS, initially cancelling them in error and then failing to resolve a subsequent collection failure in January 2026. TSB paid £200 compensation for the initial errors and reviewed the January 2026 issue with its Payments Team, confirming the direct debit was correctly set up. The ombudsman found the £200 compensation fair for the early mistakes and concluded that TSB was not responsible for the January 2026 failure, as evidence suggested no collection attempt was made that month rather than TSB causing a failure. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that TSB's £200 compensation appropriately recognised the frustration and inconvenience caused by the initial direct debit cancellation errors, given TSB's responsibilities under CASS. Regarding the January 2026 failure, the ombudsman concluded that TSB was not responsible because: (1) the system evidence showed active direct debits were in place in December 2025, so a payment should have been possible in January 2026; and (2) the February 2026 payment bore a code '01' indicating it was the first collection attempt, with no evidence of previous attempts in January 2026, suggesting no collection attempt was made that month rather than TSB causing a failure.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website