Not upheld: account closure, CIFAS fraud marker, standing order cancellation failure complaint against TSB Bank plc

Decision detail

Summary

Miss C complained that TSB Bank closed her accounts without reason, lodged a CIFAS fraud marker, and failed to cancel a standing order she claimed to have requested in November 2019. The complaint arose from Miss C's dispute of 41 gambling transactions in March 2020, which TSB believed she had made herself, constituting first-party fraud. The ombudsman found TSB had sufficient evidence to lodge the CIFAS marker based on the pattern of gambling transactions and Miss C's initial benefit from a refund, that account closure was permitted under TSB's terms and conditions, and that there was no evidence Miss C had requested standing order cancellation. The complaint was not upheld, and no compensation was ordered.

The Ombudsman's reasoning

The ombudsman found that TSB had sufficient evidence to lodge the CIFAS marker because Miss C disputed 41 gambling transactions while approximately 100 similar undisputed transactions existed, and TSB had initially refunded Miss C under the Payment Services Regulations, meaning she benefitted from a fraudulent claim. The account closure was permitted under TSB's terms and conditions. Regarding the standing order, the ombudsman found it implausible that Miss C would not have noticed a £750 monthly payment continuing for four months if she had genuinely requested cancellation, and TSB's contact notes contained no evidence of such a request. The fraudulent transactions complaint was outside the ombudsman's jurisdiction as more than six months had passed since the final response.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website