Upheld: Account administration errors complaint against Nationwide Building Society

Decision detail

Summary

Mr W complained that Nationwide Building Society failed to adhere to Payment Services Regulations regarding direct debit payments and sought a refund. Mr W had two direct debits of £125 each taken by Utility B, and raised Direct Debit Indemnity claims with Nationwide. While the first claim was correctly returned to Mr W on 24 February, a second debit of £125 on 2 April was debited from his Nationwide account with no corresponding credit from Utility B, leaving Mr W out of pocket. The ombudsman upheld the complaint, finding Nationwide made errors in processing the indemnity claims and ordered a refund of £125 plus £150 compensation for the distress and inconvenience caused by the confusion and time spent resolving the issue.

The Ombudsman's reasoning

The ombudsman reviewed both Nationwide and Utility B statements to track the movement of funds. The first DDI claim for £125 taken on 17 February was correctly returned to Mr W on 24 February. However, a second debit of £125 on 2 April labelled 'Correction of direct debit' was debited from Mr W's Nationwide account with no corresponding reflection on the Utility B account, leaving Mr W out of pocket. The ombudsman concluded Nationwide made errors in the DDI claim process that caused confusion and required Mr W to spend considerable time resolving the issue.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website