Not upheld: transfer delay and security verification procedures complaint against Halifax Share Dealing Limited

Decision detail

Summary

Mrs K complained about delays in transferring funds from her share dealing account with Halifax, claiming a £42 loss in interest and distress. Halifax had flagged the transfer for security verification checks and requested additional information from Mrs K with a 12pm deadline on 12 February 2025. When Mrs K failed to respond in time due to work commitments, Halifax recalled the transaction. The ombudsman found that Halifax's security checks were necessary and reasonable, the multiple contact attempts were appropriate given the urgency, and Halifax was entitled to set its own verification procedures. Although Mrs K experienced inconvenience and frustration, the ombudsman did not find this warranted compensation as no mistakes were made by Halifax.

The Ombudsman's reasoning

The ombudsman found that Halifax's conduct of security checks was necessary and reasonable to protect against fraud and meet regulatory obligations. While the short timeframe for response was inconvenient, Halifax was entitled to set its own policies and procedures. The ombudsman noted that Halifax made multiple contact attempts using various methods, which was appropriate given the urgency. Although Mrs K experienced frustration and inconvenience, the ombudsman did not find this rose to the level warranting compensation, particularly as no mistakes were made by Halifax in conducting the check or recalling the transfer.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website