Not upheld: direct debit guarantee claim handling and refund entitlement complaint against The Co-operative Bank Plc

Decision detail

Summary

Mr S complained that The Co-operative Bank Plc mishandled his direct debit guarantee claim regarding payments made to a media services provider from 2004 onwards. He claimed he had not authorised the direct mandate and requested a refund of all payments to the same recipient. The bank requested further information before considering the historic claim, which Mr S refused to provide, arguing the bank statements were sufficient evidence. The ombudsman found it was fair for the bank to seek additional information and reasonable to decline the claim when Mr S did not provide it, noting that the direct debit guarantee does not guarantee refunds in all cases and Mr S had delayed raising the complaint for 15 years.

The Ombudsman's reasoning

The ombudsman found that the direct debit guarantee does not provide an absolute right to refund in all cases. It was fair for the bank to seek further information before considering a historic claim, particularly given the 15-year delay in raising the complaint and the apparent continuity of payments through business transfers. The ombudsman noted that it would be unsurprising if direct debit mandates were transferred during business acquisitions, and Mr S appeared aware of the payments at the time but did not object until much later.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website