Not upheld: Card / payment disputes complaint against NewDay Ltd

Decision detail

Summary

Mr P complained that NewDay declined a £1,263.28 transaction for airline tickets at 00:28 on 8 July 2025 due to suspected fraud, and placed a temporary block on his card. He was unable to reach the Fraud Department outside business hours and when he finally got through the next day, the card was unblocked. However, by then the flight price had increased by £180.00, and Mr P sought compensation for this loss. The ombudsman found that NewDay had acted in accordance with its terms and conditions and anti-fraud procedures, and that the FOS cannot dictate how a business should operate. The complaint was not upheld and no compensation was ordered.

The Ombudsman's reasoning

The ombudsman found that NewDay acted in accordance with the account terms and conditions, which explicitly permit the firm to refuse to authorise a transaction if it suspects fraud or unauthorised use. The temporary block was a legitimate anti-fraud measure. While the ombudsman acknowledged Mr P's frustration with the process and the inability to reach the Fraud Team outside business hours, it is not the FOS's role to dictate how a business should operate its procedures. The card was unblocked without unreasonable delay once Mr P contacted the Fraud Team. Although the price increase was unfortunate, it resulted from NewDay's legitimate exercise of its contractual rights, not from any wrongdoing.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website