Not upheld: service failure in handling direct debit indemnity claim and failure to log complaint complaint against Nationwide Building Society

Decision detail

Summary

Mr D complained to Nationwide Building Society about its handling of his request to raise a direct debit indemnity claim against company S for a £160 payment, and its failure to log a complaint when asked. Mr D initiated a webchat on 14 May 2025 requesting the indemnity but left without providing full details; Nationwide did not follow up or raise the claim. When Mr D contacted again on 24 May 2025 asking for a complaint to be logged, Nationwide failed to do so. Nationwide later requested clarification of the indemnity grounds on 17 July 2025 but received no response. The ombudsman found Nationwide was not obliged to proceed without understanding the grounds for the claim, as the Direct Debit Guarantee only covers payment errors, not liability disputes. The £50 compensation for failing to log the complaint was upheld as fair and reasonable, and the complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that Nationwide was not obliged to raise a direct debit indemnity without understanding the grounds for the claim, as the Direct Debit Guarantee only covers errors in payment, not disputes about liability. Mr D left the initial webchat without providing the requested information, and when Nationwide later asked for clarification on 17 July 2025, there was no evidence he responded. Regarding the failure to log a complaint on 24 May 2025, while this was a service shortfall, the £50 compensation was appropriate as there was no financial loss (the outcome would have been the same) and the amount reflected reasonable non-financial loss for inconvenience and upset.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website