Not upheld: ATM cash withdrawal dispute - alleged non-dispensal of funds complaint against Santander UK plc

Decision detail

Summary

Mr C complained that Santander refused to refund £300 that debited his account at an ATM but was not dispensed. Santander initially relied on electronic records from the ATM owner showing the cash was dispensed correctly, but later offered to refund as a gesture of goodwill. Mr C remained unhappy and referred the complaint to the FOS, arguing that evidence from the ATM owner stating the withdrawal was unsuccessful should have triggered an immediate refund. The ombudsman found Santander's reliance on the electronic ATM records was reasonable and not unreasonable, and that the £300 refund already offered was fair. The complaint was not upheld.

The Ombudsman's reasoning

Under the Payment Services Regulations 2017, section 75, it is for the payment service provider to prove that a payment transaction was correctly executed. Santander provided electronic records from the ATM showing the cash was dispensed correctly. Although Mr C provided an email from the ATM owner stating the withdrawal was unsuccessful, this email was contradictory to the electronic records Santander had received directly from the ATM owner and was dated after Santander had already agreed to refund. The ombudsman found it was not unreasonable for Santander to rely on the electronic records and information received directly from the ATM owner. Since Santander had already agreed to refund the £300, this was the appropriate remedy.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website