Not upheld: Fraud reimbursement (APP scams) complaint against Barclays Bank UK PLC trading as Tesco Bank

Decision detail

Summary

Miss E disputed a £200 payment on her Tesco Bank credit card, claiming she did not authorize it and that it was made while she was at a restaurant. Tesco investigated and concluded the payment was made from Miss E's registered device using the correct password, with no evidence of third-party involvement. Miss E failed to make a minimum payment on the disputed amount while the investigation was ongoing, resulting in a late payment marker on her credit file. The ombudsman found that Miss E more likely than not authorized the transaction based on the security measures in place and the pattern of the payment, and upheld Tesco's decision to hold her liable and report the late payment accurately, though Tesco fairly refunded the late payment fee and compensated Miss E £150 plus Clubcard points for the delayed investigation.

The Ombudsman's reasoning

The ombudsman applied the standard that a consumer is only responsible for authorized transactions. Given that the payment was made from Miss E's registered device using the correct password, that Face ID security was in place, that the password was not changed, and that a fraudster with full access would likely have attempted to take more of the available credit, the ombudsman found it unlikely that an unknown third party made the payment without Miss E's authorization. The ombudsman also found that Tesco correctly reported the late payment marker to Credit Reference Agencies as it had a duty to report accurate information, though the refund of the late payment fee was fair.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website