Upheld: Service failures generally complaint against Barclays Bank UK PLC, trading as Tesco Bank

Decision detail

Summary

Mr S complained that Tesco Bank's £150 compensation offer was inadequate following multiple service failings on his credit card account. The bank had provided incorrect information regarding available credit on several occasions, causing delays in processing balance and money transfers and resulting in fees. While Tesco Bank acknowledged the errors and attributed some confusion to system constraints caused by the high volume of Mr S's transfer requests, the ombudsman found this did not justify limiting compensation. The ombudsman upheld the complaint and increased the compensation to £250 plus reimbursement of evidenced fees, finding that agents should have informed the customer of system issues rather than providing incorrect information.

The Ombudsman's reasoning

While Tesco Bank argued that the high volume and frequency of transfer requests caused system delays affecting information accuracy, the ombudsman found this was not a valid reason to limit compensation. Agents should have been aware of system constraints and should have informed Mr S of any issues rather than providing incorrect information. Given the number of errors made by the bank regarding high-value transactions, £250 is more appropriate compensation than the initial £150 offer.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website