Not upheld: Card / payment disputes complaint against The Co-operative Bank plc

Decision detail

Summary

Mr J complained that The Co-operative Bank plc should refund approximately £40,000 in gaming app transactions made between September 2021 and November 2022, arguing he lacked mental capacity due to a degenerative disease and that the bank should have detected the unusual spending pattern. The Co-op declined to use chargeback rules as the disputes were raised outside the permitted timeframe. The ombudsman found that Mr J had properly authorised all transactions under the Payment Services Regulations 2017 with both authentication and consent, and that while he suffered cognitive issues, there was no independent medical evidence of lack of mental capacity. The ombudsman noted that Mr J continued normal account management, actively transferred funds to enable gaming, and was capable of raising disputes, suggesting retained capacity. The complaint was not upheld as there were insufficient grounds under the Mental Capacity Act or FCA guidance to require refund, and the Co-op had no knowledge of his medical condition during the transaction period.

The Ombudsman's reasoning

The ombudsman found that Mr J had properly authorised all transactions under the Payment Services Regulations 2017, which require both authentication and consent. While Mr J suffered from a degenerative disease causing cognitive issues, there was no independent medical evidence that he lacked mental capacity. The fact that Mr J continued normal day-to-day account management, actively transferred funds between accounts to enable gaming use, and was capable of raising a dispute in March 2023 suggested he retained mental capacity. The Co-op had no knowledge of his medical condition during the transaction period, and there were no grounds under the Mental Capacity Act or FCA guidance on vulnerable customers to require refund.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website