Not upheld: account limits not applied as requested; excessive dispute letters complaint against Barclays Bank UK PLC

Decision detail

Summary

Mr K, an 11-year-old with a Barclays children's account, had over £180 in transactions processed despite his mother's request for a £5 spending limit. When the payments were disputed, Barclays sent over 30 separate letters requiring completion and return. The ombudsman found that the pattern of transactions exceeding £5 suggested the account limits may have changed over time at the mother's instruction, and that Barclays had not acted unfairly or unreasonably. While acknowledging the multiple dispute letters were unhelpful, the ombudsman did not uphold the complaint, noting that the absence of certain features (like transaction notifications) in Barclays' product compared to competitors does not constitute an error.

The Ombudsman's reasoning

The ombudsman was not satisfied that Barclays was definitively told to apply a £5 limit, based on the pattern of transactions exceeding £5 that appeared to be planned purchases. The ombudsman concluded it was more likely than not that the account operated in line with limits Barclays was asked to apply, which may have changed over time at the mother's instruction. While acknowledging that some aspects were unhelpful (particularly the multiple dispute letters), the ombudsman found no evidence of unfair or unreasonable conduct by Barclays. The fact that another provider offers features Barclays does not provide is not itself grounds for upholding the complaint.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website