Not upheld: scam - refund claim complaint against Revolut Ltd

Decision detail

Summary

Mr D, acting on behalf of J (a limited company), complained that Revolut failed to refund £75,000 lost in a property investment scam in July 2024. The payment was made from J's Revolut account but was funded via a director's loan taken by Mr D, and the investment contract was in Mr D's personal name. The ombudsman found that J, as the eligible complainant, did not suffer a financial loss because the funds were invested personally by Mr D, who owes J the director's loan amount. Consequently, the ombudsman determined it would be unfair to hold Revolut liable for losses not suffered by its customer and did not uphold the complaint.

The Ombudsman's reasoning

The ombudsman determined that J, as the eligible complainant, did not suffer a financial loss because the funds were invested personally by Mr D through a director's loan arrangement. Mr D owes J the amount of the director's loan, meaning the loss was personal to Mr D rather than to J. Therefore, it would not be fair or reasonable to hold Revolut liable for losses not suffered by its customer. Additionally, Mr D cannot make a complaint directly as he is not an eligible complainant in his own right since the funds did not come from a personal account.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website