Upheld: failed international payment transfer and exchange rate loss complaint against Nationwide Building Society

Decision detail

Summary

Mr R instructed Nationwide Building Society to send £4,700 overseas to purchase a vehicle in mid-November 2025. The payment failed to reach the beneficiary and remained unaccounted for, forcing Mr R to make alternative arrangements and incur storage costs. When NBS finally returned the funds in late January 2026, Mr R received only £4,400 due to adverse exchange rate movements during the delay period. NBS accepted responsibility for service failures and delays but refused to compensate for the exchange rate loss, arguing this was an inherent risk of international transfers. The ombudsman upheld the complaint, finding that NBS should have returned the funds sooner and that Mr R should not bear the loss since he was not at fault, ordering NBS to pay compensation, refund the SWIFT fee, cover storage costs, and reimburse the exchange rate loss.

The Ombudsman's reasoning

The ombudsman found that NBS failed to successfully process the international payment and that delays in returning the funds caused Mr R to suffer a financial loss due to adverse exchange rate movements. Although NBS argued it should not be liable for exchange rate risks inherent in international transfers, the ombudsman determined that NBS could have mitigated the loss by returning funds sooner and that Mr R should not bear the loss since he was not at fault. The ombudsman also found NBS should refund the SWIFT fee because Mr R likely incurred a similar fee with another bank while waiting for the delayed refund.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website