Not upheld: scam/fraud - refund claim complaint against Barclays Bank UK PLC

Decision detail

Summary

Mr D complained that Barclays Bank UK PLC refused to refund money he lost to what he believed was a property investment scam in 2019. The complaint was initially rejected as out of time but was found to be within the 6-year jurisdiction limit. The ombudsman examined whether Mr D was actually scammed and whether Barclays should have intervened to prevent the payment. The ombudsman found insufficient evidence of an actual scam, noting that Mr D's submissions only demonstrated a transfer of funds rather than proof of intentional deception. Even assuming a scam occurred, the ombudsman concluded that Barclays' intervention would not have made a difference because Mr D had persuasive documentation and there was no negative information available at the time that would have raised concerns. The complaint was not upheld and no compensation was ordered.

The Ombudsman's reasoning

The ombudsman applied the Payment Services Regulations 2017, noting that consumers are generally liable for authorised payments and banks must help protect customers from fraud and scams. However, the ombudsman found insufficient evidence that a scam actually occurred, as Mr D's submissions only demonstrated a transfer of funds to a third party rather than proof of intentional deception from the outset. Even assuming a scam occurred, the ombudsman concluded that any intervention by Barclays would not have made a difference because Mr D had persuasive documentation and there was no publicly available negative information about the investment at the time of payment that would have raised concerns.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website