Not upheld: fraud checks, account blocking, and provision of incorrect information complaint against Nationwide Building Society

Decision detail

Summary

Mr K complained to Nationwide Building Society about the handling of fraud checks on his credit card when he attempted to purchase a high-value item (£11,090) on 4 January 2026. His account was blocked for fraud verification and remained blocked for approximately 2 days until 6 January. Mr K claimed he received conflicting information about the block status, was treated poorly by staff, and suffered distress when he could not complete the purchase in time for his friend's wedding, resulting in a £586.70 price increase. Nationwide apologized for providing some incorrect information and offered £75 compensation but refused to reimburse the price difference or accept that its fraud procedures were inappropriate. The ombudsman found Nationwide's fraud checks and blocking procedures were fair, reasonable, and compliant with regulatory requirements, and that the £75 compensation was appropriate for the minor inconvenience caused.

The Ombudsman's reasoning

The ombudsman accepted that financial institutions must follow regulatory requirements to prevent fraud and protect customers. The block was placed reasonably based on irregular activity indicators and was removed promptly (2 days) after Mr K provided required evidence. While Nationwide provided some incorrect information about the block status, this was acknowledged and compensated with £75. The ombudsman found no evidence the card remained blocked after 6 January, as Mr K successfully made the purchase on 9 January. The inconvenience caused was considered acceptable given the legitimate fraud prevention purpose.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website