Not upheld: Card / payment disputes complaint against Barclays Bank UK PLC

Decision detail

Summary

Miss M complained that Barclays failed to process her Direct Debit Indemnity claim correctly after she initially submitted the required form in 2024. When she recontacted Barclays in February 2026, the bank stated it had not received her original submission and requested the information again. Upon resubmission, Barclays requested additional information including proof from the business that payments were made in error. Miss M objected, arguing she had provided all relevant information and that the process was inefficient, particularly as she was transferring to another bank. The ombudsman found that Barclays was entitled to request further information to establish whether the claim met the Direct Debit Guarantee criteria and that the bank responded promptly, therefore not upholding the complaint.

The Ombudsman's reasoning

Banks are entitled to request further information to establish what has happened and whether the criteria of the Direct Debit Guarantee are met. The scheme rules explicitly allow banks to ask for information before processing a claim. It is important for banks to complete checks prior to processing a refund because if a refund is later found to be invalid, the bank would need to re-debit the amount, which could leave the customer in a difficult position. In this case, Barclays responded promptly (the following day) to Miss M's resubmission, and while better updates could have been provided, the bank acted fairly and promptly overall.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website