Upheld: unauthorised transactions, failure to block card, delayed refund complaint against Bank of Scotland plc

Decision detail

Summary

Miss D disputed approximately 25 unauthorised transactions on her Bank of Scotland account from May 2025, allegedly made by a relative and friend who stole her bank card and mobile phone. After Miss D's carer reported the fraud, BoS failed to block the card and fraud continued. BoS initially refused to refund early transactions, citing gross negligence for writing her PIN on her phone, but agreed to the investigator's recommendation for full refund plus £150 compensation. Miss D remained unhappy with the compensation amount. The ombudsman upheld the complaint, finding the failure to cancel the card was more than a minor error and that £200 total compensation (£50 initial plus £150 additional) was fair under FOS guidelines.

The Ombudsman's reasoning

The ombudsman agreed that writing a PIN on a passcode-protected phone did not constitute gross negligence, as the phone was not shared. The failure to cancel the card after being notified of fraud was more than a minor administrative error and caused more than minimal impact. The compensation of £200 total (£50 initial plus £150 additional) was fair under FOS guidelines for an error causing more than frustration and annoyance but resolved fairly quickly. The ombudsman noted that BoS's initial refusal to uphold the complaint should not be penalised, as businesses are entitled to make their own findings.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website