Not upheld: Account administration errors complaint against Domestic & General Insurance Plc

Decision detail

Summary

Mr M complained that he did not receive a £1,299 cash settlement payment from D&G for a replacement mobile phone claim, despite D&G agreeing to pay it. Although Mr M requested the payment be sent to bank account two, D&G sent it to bank account one (the account on file) on 22 October 2025. D&G provided evidence that the payment left its bank account using the correct account details and was never refunded. The £100 compensation payment was successfully received by Mr M the previous day, confirming the banking route was operational. The ombudsman found that D&G had fulfilled its obligation and that the issue must lie with Mr M's bank, which failed to credit the funds despite receiving them with correct account details. The complaint was not upheld as D&G had no further obligation to make another payment without clarification from Mr M's bank.

The Ombudsman's reasoning

The ombudsman found that D&G had fulfilled its obligation by demonstrating that the settlement payment of £1,299 left its bank account on 22 October 2025 and was sent to the correct account details for Mr M's bank account one. The fact that the £100 compensation was successfully received the previous day proved the banking route was operational. Since D&G could show the money left its account and was never returned, and the payment was sent with correct account details, the issue must lie with Mr M's bank. The ombudsman determined that only Mr M's bank could explain why the funds were not credited to his account, and therefore D&G had no further obligation to make another payment without clarification from the bank.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website