Not upheld: unfair charges and complaint handling complaint against Prepay Technologies Limited

Decision detail

Summary

Mr V complained about a £6 cash out fee charged by Prepay Technologies Limited to transfer his remaining £21.10 balance back to his bank account and close his account. He argued the fee was not properly incorporated into his agreement and noted it had not been charged on two previous occasions. The ombudsman found the fee was clearly included in the account terms and conditions that Mr V would have agreed to, and that inconsistent application on previous occasions did not make the fee unfair to apply in this instance. Although Prepay had some complaint handling issues including missed call backs, the ombudsman found the £25 goodwill credit offered was fair and reasonable compensation and did not uphold the complaint.

The Ombudsman's reasoning

The ombudsman found that the £6 cash out fee was clearly included in the account terms and conditions that Mr V would have agreed to when entering the account. Although Prepay failed to charge the fee on two previous occasions, this inconsistency does not make the fee unfair to apply in this instance. While Prepay had some complaint handling issues including missed call backs and confusion over responsibility, these did not materially affect the advice given to Mr V that the fee was applicable. The £25 goodwill credit offered by Prepay was deemed fair and reasonable compensation for the inconvenience caused during the complaint process.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website