Not upheld: unauthorised transaction / disputed payment complaint against TSB Bank plc

Decision detail

Summary

Mr M complained that TSB refused to refund a £1,950 payment he claimed he did not make or authorise from his newly opened current account. The payment was made via mobile banking using an OTP sent to Mr M's phone and his memorable information. TSB's technical evidence showed only one device was ever used to set up mobile banking and make the disputed payment. The ombudsman found that the transaction was more likely than not authorised by Mr M, as there was no plausible explanation for how an unauthorised party could have accessed the necessary security details. The complaint was not upheld and TSB was entitled to hold Mr M liable for the overdrawn balance.

The Ombudsman's reasoning

The ombudsman applied the Payment Services Regulations 2017 and found that TSB could hold Mr M liable for transactions he made or authorised. The evidence showed that mobile banking was set up using an OTP sent to Mr M's phone and his memorable information, and the same device made the disputed payment. The ombudsman concluded that it was more likely than not that the device was Mr M's or being used by him, and that there was no plausible explanation for how an unauthorised party could have accessed the necessary information without Mr M's involvement. The ombudsman noted that Mr M had not provided evidence of alternative circumstances despite being adamant he didn't share the OTP or account details.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website