Not upheld: unauthorized continuous payment authority and failure to prevent debits complaint against Barclays Bank UK PLC

Decision detail

Summary

Miss T complained to Barclays after a £0.49 online payment to Merchant W for a PDF conversion service resulted in an unwitting continuous payment authority (CPA) being set up, leading to a successful £49 debit and further attempted debits. Miss T argued Barclays should have prevented these debits. The ombudsman found that Miss T had unwittingly authorized the CPA at the point of the initial payment, which Barclays could not have known. Given the operational nature of CPAs and the difficulties banks face in cancelling them, the ombudsman found Barclays acted appropriately by cancelling the CPA once notified and informing Miss T of the refund procedure. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that Miss T unwittingly set up the CPA when making the initial payment, which Barclays could not have known at that time. CPAs operate differently from direct debits and are difficult for banks to prevent or cancel quickly. Barclays acted appropriately by cancelling the CPA once notified and informing Miss T that further debits might occur but would be refunded. The subsequent debit on 25 February 2026 after cancellation was not Barclays's responsibility given the operational nature of CPAs.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website