Upheld: failure to monitor account activity and take protective action; failure to adequately assess vulnerability; inadequate intervention in response to compulsive spending behaviour complaint against TSB Bank Plc
Financial Ombudsman decision DRN-6338948 of 2026-05-06T00:00:00+00:00. failure to monitor account activity and take protective action; failure to adequately assess vulnerability; inadequate intervention in response to compulsive spending behaviour complaint against TSB Bank Plc. Outcome: Upheld.
Decision detail
| Reference | DRN-6338948 |
|---|---|
| Decision date | 2026-05-06T00:00:00+00:00 |
| Firm | TSB Bank Plc |
| Product | credit card |
| Claim type | failure to monitor account activity and take protective action; failure to adequately assess vulnerability; inadequate intervention in response to compulsive spending behaviour |
| Outcome | Upheld |
| Remedy | TSB must: (1) block all future transactions from Mrs W's credit cards to the retailer; (2) refund all interest applied to Mrs W's account relating to transactions to the retailer made between 11 May 2023 and 1 August 2025; (3) pay Mrs W £150 compensation for trouble and inconvenience caused by TSB's failure to take appropriate action in May 2023; (4) recalculate Mrs W's account balance after removing interest; (5) if Mrs W has overpaid, refund the surplus with 8% simple yearly interest from the date of overpayment. |
Summary
Mrs W complained that TSB failed to safeguard her against making multiple transactions to a single online retailer on her credit card. From 2018 onwards, Mrs W spent over £58,000 with the retailer, with spending escalating dramatically from August 2022 onwards, reaching £1,000-£3,700 monthly by 2024-2025. TSB had a conversation with Mrs W in May 2023 but took no further action despite the situation substantially worsening thereafter. The ombudsman found TSB breached its regulatory duty to monitor account activity and take protective action. TSB was directed to block future transactions, refund interest accrued from May 2023 to August 2025, and pay £150 compensation.
The Ombudsman's reasoning
TSB had a regulatory duty to monitor account activity and take action where necessary. While the spending was initially low-value and frequent, a sustained and dramatic increase began in August 2022, reaching over £1,000 monthly by mid-2023. The May 2023 conversation was inadequate—merely asking if Mrs W wanted to continue making payments was insufficient given the compulsive spending behaviour exhibited. TSB's failure to take further action after May 2023, despite the situation substantially worsening, constituted a breach of regulatory duty. Mrs W should pay for goods and services received but should not bear interest charges that would not have accrued had TSB acted appropriately.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| TSB Bank Plc, all decisions | 3,565 | 26% |
Source
Read the original decision on the Financial Ombudsman Service website