Not upheld: account management - display of Direct Debit payments in available balance complaint against THE CO-OPERATIVE BANK P.L.C. trading as Smile

Decision detail

Summary

Mr M complained that Smile did not reflect Direct Debit payments due to be debited in his account's available balance, which resulted in multiple unpaid Direct Debits. He requested that Smile change its systems to display pending Direct Debits so he could ensure sufficient funds. Smile declined, explaining that Direct Debit amounts are variable and only known upon receipt of the payment instruction. The ombudsman found that Smile's approach was reasonable and that Mr M received sufficient information through text notifications and transaction details to manage his account, and that Direct Debits were correctly declined when insufficient funds existed. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman reasoned that Smile cannot be required to change its systems or operations, and that Smile's approach to Direct Debits is reasonable because the originator determines the amount and Smile only knows this upon receipt of the instruction. The ombudsman found that Mr M received sufficient information through text notifications, visible account balance, and clickable transaction details to determine how much to deposit. The ombudsman concluded that Smile did not act incorrectly in declining Direct Debits when insufficient funds existed, including when the balance would exceed the arranged overdraft limit.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website