Upheld: service failure, delayed refund processing, poor customer communication complaint against Remitly U.K., LTD

Decision detail

Summary

Mr Y complained that Remitly cancelled his payment transaction on 8 July and held the refund for nearly two months, causing financial hardship including missed credit card payments and late fees. Remitly failed to contact Mr Y when its automated refund process failed, did not respond to multiple follow-up emails, and experienced technical delays that extended the refund period. The ombudsman found Remitly made multiple service errors causing a total 31-day delay and upheld the complaint, ordering compensation of £180. However, the ombudsman rejected Mr Y's claim for reimbursement of credit card late fees due to insufficient evidence of direct causation.

The Ombudsman's reasoning

The ombudsman found that Remitly made multiple errors: failing to contact Mr Y when the automated refund failed (15-day delay), failing to respond to multiple emails during the processing period, and experiencing technical delays that caused a further 16-day delay. The total delay of 31 days, combined with poor customer service and lack of communication, warranted compensation beyond the initial £100 offer. However, the evidence regarding credit card late fees was insufficient to establish direct causation, as the charges did not clearly show the billing periods they related to.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website