Upheld: fraud handling failure and poor customer service complaint against Barclays Bank UK PLC (trading as Barclaycard)

Decision detail

Summary

Mr R complained that Barclaycard failed to handle his fraud report properly when unauthorised transactions to an IT company continued even after he reported them and his card was replaced. Barclaycard refunded most fraudulent transactions and paid £350 compensation, but Mr R was dissatisfied with the amount and the manner of payment. The ombudsman upheld the complaint, finding Barclaycard's failure to stop the continuing fraudulent payments and poor customer service caused considerable distress and inconvenience. The ombudsman verified Barclaycard's financial figures were accurate and determined that total compensation of £625 (including £350 already paid) was fair and reasonable, rejecting Mr R's request for £1,200 due to lack of evidence supporting claims of credit score damage and health impacts.

The Ombudsman's reasoning

The ombudsman found that Barclaycard failed to stop fraudulent transactions even after Mr R reported them and the card was replaced, and provided poor customer service throughout. The ombudsman verified that Barclaycard's financial figures were correct and that the interest refunds included generous coverage of genuine transactions. The ombudsman rejected Mr R's arguments that the £350 compensation should have been discussed in advance, finding that crediting the account was not unreasonable as it reduced his outstanding balance. The ombudsman applied FOS guidance that compensation of £300-£750 is appropriate for considerable distress and significant inconvenience lasting weeks or months, and determined £625 total compensation was fair and reasonable. The ombudsman rejected Mr R's claims regarding credit score impact and health effects due to lack of evidence, and rejected the argument that his high salary should increase compensation.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website