Not upheld: direct debit guarantee claim - refund of alleged unauthorised payments complaint against Nationwide Building Society
Financial Ombudsman decision DRN-6353143 of 2026-06-11T00:00:00+00:00. direct debit guarantee claim - refund of alleged unauthorised payments complaint against Nationwide Building Society. Outcome: Not upheld.
Decision detail
| Reference | DRN-6353143 |
|---|---|
| Decision date | 2026-06-11T00:00:00+00:00 |
| Firm | Nationwide Building Society |
| Product | Current account |
| Claim type | direct debit guarantee claim - refund of alleged unauthorised payments |
| Outcome | Not upheld |
| Remedy | None ordered. The £100 compensation already paid by Nationwide for the administrative error (not raising the full claim initially) was noted but not considered to require further action. |
Summary
Mr M complained that Nationwide Building Society wrongly rejected his claim for a refund of direct debit payments to an internet/mobile phone provider (E) that he alleged were unauthorised. Nationwide initially credited one payment but declined to apply temporary credit for other payments whilst investigating the claim, ultimately rejecting it after receiving evidence from E in the form of monthly bills. The ombudsman found Nationwide acted reasonably given that Mr M failed to notice or report the payments for years (from 2021-2025 until January 2026), contrary to the direct debit guarantee's requirement to check accounts regularly and report unrecognised payments immediately. The complaint was not upheld.
The Ombudsman's reasoning
The ombudsman found that whilst the direct debit guarantee provides for immediate refund in case of error, it is not absolute. The ombudsman considered it reasonable for Mr M to have noticed the payments at the time they were taken, as the guarantee requires customers to check accounts regularly and contact their bank immediately upon noticing unrecognised payments. Given that Mr M waited considerable time (years in some cases) before contacting Nationwide, and that E provided evidence in the form of monthly bills showing the payments were authorised, the ombudsman found it reasonable for Nationwide to investigate and ultimately reject the claim. The ombudsman also noted the guarantee does not cover contractual disputes.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Nationwide Building Society, all decisions | 13,231 | 21% |
| Current account, all decisions | 45,590 | 19% |
Source
Read the original decision on the Financial Ombudsman Service website