Not upheld: data deletion failure and unauthorized transaction complaint against CB Payments Ltd trading as Coinbase

Decision detail

Summary

Mr B complained that Coinbase failed to delete his card details when he closed his account in July 2024, leading to a £0.01 authorization attempt on his replacement debit card in September 2025. Although the authorization was never claimed and caused no financial loss, Mr B sought compensation for distress and inconvenience. Coinbase maintained they deleted his payment details as required, retaining only legally mandated information. The ombudsman found insufficient evidence to conclusively determine that Coinbase caused the error, noting that while an Automated Billing Updater notification could explain the transaction, Coinbase claimed to have no record of Mr B's payment details. The complaint was not upheld as no financial loss occurred and the error could not be safely attributed to Coinbase.

The Ombudsman's reasoning

The ombudsman acknowledged that while an authorization attempt occurred, there was insufficient evidence to conclusively determine that Coinbase caused it or failed to delete Mr B's data. Although an Automated Billing Updater (ABU) notification could explain the transaction, Coinbase stated they no longer had Mr B's payment details on file. Since no financial loss occurred and the error could not be safely attributed to Coinbase, compensation was not warranted. The ombudsman noted that while Coinbase took time to respond, they kept Mr B informed throughout.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website