Not upheld: balance transfer not completed; alleged unclear terms and Consumer Duty breach complaint against Lloyds Bank Plc

Decision detail

Summary

Mr M complained that a balance transfer from his Lloyds credit card to a credit card held with lender M could not be completed. Mr M had checked that M was UK-based and a member of the Faster Payment Scheme, as required by Lloyds' terms, but M does not accept balance transfers on its credit cards. The ombudsman found that Lloyds' terms, while specifying two criteria, did not guarantee completion and made clear the process required approval from all parties. Mr M was responsible for verifying the credit card was suitable for his circumstances, and information about M's balance transfer policy was clearly available on its website. The ombudsman did not uphold the complaint and found Lloyds' £20 gesture of goodwill to be fair.

The Ombudsman's reasoning

The ombudsman found that while Lloyds' terms specified two criteria (UK-based and Faster Payment Scheme member), they did not guarantee a balance transfer would be completed. The terms made clear the process was subject to approval by all parties, including the recipient lender. M's policy against balance transfers was clearly stated on its website and was information Mr M could have verified before applying. Mr M bore responsibility for checking whether the credit card was suitable for his circumstances. The ombudsman was satisfied Lloyds' information was clear and that the agent handled Mr M's calls professionally.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website