Upheld: administrative error - incorrect reason code for direct debit cancellation complaint against The Royal Bank of Scotland Public Limited Company (RBS)

Decision detail

Summary

Mr G called RBS to cancel a direct debit that had debited an incorrect amount. RBS confirmed the cancellation but used an incorrect reason code, causing the third party to receive a notification stating Mr G was deceased rather than that the direct debit was cancelled by customer request. The third party subsequently sent a letter to Mr G addressed to the executor of his estate, causing distress and inconvenience. The ombudsman upheld the complaint, finding RBS had made an error in processing the cancellation code, and awarded £300 compensation for the distress and inconvenience caused.

The Ombudsman's reasoning

On the balance of probabilities, RBS processed the cancellation using an incorrect reason code, resulting in the third party receiving a deceased customer notification rather than a customer request cancellation. The ombudsman found RBS made a mistake that caused distress and inconvenience to Mr G. While Mr G claimed financial loss and counselling costs, no evidence was provided to support these claims. The ombudsman determined £300 was fair and reasonable compensation for the distress and inconvenience caused.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website