Not upheld: Account administration errors complaint against Barclays Bank Plc

Decision detail

Summary

Mr and Mrs M complained that Barclays wrongfully withheld £16.98 from their share sale proceeds on 15 December 2025, claiming they had already paid the Smart Investor fee via direct debit from their current account. Barclays explained it was standard practice to ringfence funds to cover the fee until the direct debit cleared, which occurred on 18 December when the remaining amount was released. The ombudsman found that the bank and investment accounts are separate systems with individual agreements, and Barclays had contractual rights to retain assets for fee payment. The ombudsman concluded that the temporary hold was fair and reasonable, as the Smart Investor account would not 'know' the fee had been paid from another account until the direct debit cycle completed.

The Ombudsman's reasoning

The ombudsman found that while Mr and Mrs M's bank and investment accounts were both with Barclays, they are separate accounts governed by individual agreements and operating on separate systems. Under the Smart Investor account terms, Barclays had the right to retain assets for payment of fees. The ombudsman considered it fair for Barclays to ringfence funds to ensure investment fees are paid, reducing the risk of non-payment and adverse consequences. The Smart Investor account would not 'know' the fee had been paid from another account until the direct debit cycle completed, which typically takes several days. The temporary inability to access funds while trades settle is not uncommon and does not indicate wrongdoing.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website