Not upheld: service failure and payment processing error (alleged) complaint against Lloyds Bank Plc

Decision detail

Summary

Mr R complained that Lloyds' banking app failed to process a transfer to pay his council tax bill, resulting in a £100 late payment fee. Lloyds maintained that its systems were functioning normally and that the issue was likely due to Mr R's device or network. The ombudsman reviewed evidence including system records, customer reports, and Mr R's account activity, finding no evidence of bank error. While accepting that Lloyds' complaint handling could have been better, the ombudsman upheld the £30 goodwill payment as reasonable and did not uphold the complaint.

The Ombudsman's reasoning

The ombudsman accepted Lloyds' position that there were no system errors because Lloyds provided consistent evidence showing no technical faults, no customer reports of similar issues, and records confirming Mr R made a successful payment on the same day. The ombudsman found that the most likely explanation was a problem at Mr R's end (device or network). While acknowledging that complaint handling could have been better, the ombudsman considered the £30 goodwill payment reasonable compensation for the distress caused during the complaint process.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website