Upheld: account restriction, poor handling of funds, service failures, delays in returning funds complaint against Modulr FS Limited trading as Pockit Limited
Financial Ombudsman decision DRN-6287850 of 2026-05-22T00:00:00+00:00. account restriction, poor handling of funds, service failures, delays in returning funds complaint against Modulr FS Limited trading as Pockit Limited. Outcome: Upheld.
Decision detail
| Reference | DRN-6287850 |
|---|---|
| Decision date | 2026-05-22T00:00:00+00:00 |
| Firm | Modulr FS Limited trading as Pockit Limited |
| Product | current account |
| Claim type | account restriction, poor handling of funds, service failures, delays in returning funds |
| Outcome | Upheld |
| Remedy | Pay a total of £500 compensation for distress and inconvenience caused (increase from original £150 offer). If Pockit had already paid the £150, it must pay the £350 balance. The ombudsman did not require Pockit to recover the HMRC funds or pay interest, as evidence suggested the funds were returned to HMRC as claimed, with subsequent delays attributable to HMRC's tracing issues. |
Summary
Mr P complained that Pockit restricted his account after receiving a £4,316 HMRC tax rebate, requested information in a confusing manner, and failed to return his wages (£379.95) and assist with recovery of the HMRC payment. Pockit claimed it returned the HMRC funds on 19 May 2025 and that a technical error caused the six-month delay in returning wages. The ombudsman found Pockit made two separate information requests with different details and only one clear deadline, processed the return before the deadline it had set, caused a six-month delay in returning wages, and was unresponsive to Mr P's requests for help. While accepting that Pockit likely returned the HMRC funds when claimed, the ombudsman found Pockit should have been more transparent and helpful. The complaint was upheld and compensation was increased from £150 to £500.
The Ombudsman's reasoning
The ombudsman found that Pockit failed to act fairly and reasonably in several respects: (1) it made two separate information requests with different details and only one clearly stated a deadline, creating confusion; (2) it processed the return of HMRC funds on 19 May before the 21 May deadline it had given to Mr P, suggesting the deadline was not genuine; (3) it caused a six-month delay in returning Mr P's wages (£379.95) due to a technical error, leaving him without earned income; (4) it was unresponsive to Mr P's requests for help and did not provide evidence or contact details to assist him in recovering the HMRC payment; (5) it only produced evidence to this service that HMRC had the funds after Mr P complained, rather than proactively helping him. While the ombudsman accepted that Pockit likely did return the HMRC funds when it claimed (19 May 2025) and that subsequent delays were likely HMRC's responsibility, Pockit should have been more helpful and transparent. The impact on Mr P was significant: he was without his wages for over six months and without access to his tax rebate for most of 2025. The £150 compensation was insufficient given the distress, inconvenience, and poor service.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Modulr FS Limited trading as Pockit Limited, all decisions | 2 | 100% |
Source
Read the original decision on the Financial Ombudsman Service website