Not upheld: unauthorized transaction / fraud claim and account closure complaint against Monzo Bank Limited

Decision detail

Summary

Ms V complained that Monzo refused to refund a disputed card transaction of £592.59 made on 3 November 2025, citing poor service and account closure. The ombudsman found that technical evidence showed the transaction was authenticated using Ms V's biometrics on her own device, and that Ms V had transferred the exact amount from savings the previous day, indicating authorization. Although Monzo's service was deficient in handling the dispute, the £50 compensation offered was fair. The account closure was within Monzo's contractual rights as they provided proper notice.

The Ombudsman's reasoning

The ombudsman applied the Payment Services Regulations 2017 and determined that the technical evidence of biometric authentication combined with Ms V's confirmed possession of her device, and her own transfer of the exact amount the day before, demonstrated that Ms V most likely authorized the transaction. The ombudsman acknowledged service failings but found the £50 compensation appropriate. Regarding account closure, the ombudsman confirmed that banks have the right to terminate customer relationships with proper notice as defined in their terms and conditions.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website