Not upheld: payment blocking / service failure complaint against Monzo Bank Limited

Decision detail

Summary

Mr A complained that Monzo blocked a payment for flights costing under £3,500, and by the time the block was lifted approximately 1 hour 15 minutes later, the flight price had increased by over £400. Monzo's security systems had flagged the transaction as potentially fraudulent due to its unusual nature and high value, and a specialist was required to review and clear it. The ombudsman found that while the delay caused financial loss, Monzo acted reasonably in triggering a security alert for an unusual transaction and resolved the matter within a reasonable timeframe, and therefore did not uphold the complaint.

The Ombudsman's reasoning

The ombudsman accepted that the delay caused financial loss but held that Monzo was not responsible because: (1) the payment was genuinely unusual and triggered a reasonable security alert; (2) banks have commercial discretion in designing their fraud prevention systems; (3) the resolution timeframe of approximately 1 hour 15 minutes was reasonable in the circumstances; and (4) while unfortunate, the price increase was not a result of unreasonable delay by Monzo.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website