Upheld: unauthorized transactions and service failure in cancelling continuous payments complaint against Barclays Bank UK PLC
Financial Ombudsman decision DRN-6348524 of 2026-05-19T00:00:00+00:00. unauthorized transactions and service failure in cancelling continuous payments complaint against Barclays Bank UK PLC. Outcome: Upheld.
Decision detail
| Reference | DRN-6348524 |
|---|---|
| Decision date | 2026-05-19T00:00:00+00:00 |
| Firm | Barclays Bank UK PLC |
| Product | current account |
| Claim type | unauthorized transactions and service failure in cancelling continuous payments |
| Outcome | Upheld |
| Remedy | Barclays Bank UK PLC directed to: (1) Pay Mr M the September 2025 payment transaction of £4.99 if still outstanding; (2) Add simple interest at time-weighted average Bank of England base rate plus one percentage point from the date of the transaction until settlement; (3) Pay Mr M £50 compensation for distress and inconvenience. |
Summary
Mr M complained to Barclays about unauthorized continuous payment transactions to Uber One totaling £4.99 each across multiple months in 2025 and 2026. Barclays refunded all transactions except the September 2025 payment and paid £100 compensation. An FOS investigator recommended an additional £50 compensation (total £150) and refund of the outstanding £4.99 plus interest, which Barclays accepted but Mr M rejected, requesting £600 instead. The Ombudsman upheld the complaint and affirmed the investigator's recommendation of £150 total compensation, finding it fair and reasonable given that fraudsters were the root cause, though Barclays could have cancelled the payments more promptly.
The Ombudsman's reasoning
The Ombudsman accepted the investigator's findings that Barclays could have cancelled the continuous payments more promptly. However, the Ombudsman noted that the root cause of the complaint was fraudulent activity by third parties, not Barclays's actions. The Ombudsman also acknowledged that continuous payments are not always straightforward for banks to cancel. Given these factors, the Ombudsman determined that £50 additional compensation (totaling £150 with the £100 already paid) was fair and reasonable, rejecting Mr M's request for £600.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Barclays Bank UK PLC, all decisions | 11,165 | 22% |
Source
Read the original decision on the Financial Ombudsman Service website