Upheld: Account administration errors complaint against Barclays Bank UK PLC trading as Tesco Bank

Decision detail

Summary

Ms B complained that Tesco Bank charged her interest on her credit card account after assuring her it would not. Although Tesco Bank refunded the interest and waived further charges, Ms B was unhappy with the length of time and amount of correspondence required to resolve the issue. The investigator upheld the complaint and recommended £150 total compensation. Tesco disagreed and offered £100, while Ms B requested £200. The ombudsman upheld the complaint and awarded £150 total compensation, finding this amount fair and reasonable given the distress and inconvenience caused by the firm's failure to provide clear information and the protracted resolution process.

The Ombudsman's reasoning

The ombudsman upheld the complaint and awarded £150 total compensation, finding this amount commensurate with the FOS's consistent approach to compensation. The ombudsman considered the length of time to resolve the matter, the number of phone calls Ms B had to make, and her testimony about the distress and inconvenience caused. The ombudsman rejected both Tesco's offer of £100 and Ms B's request for £200, finding £150 to be fair and reasonable in the circumstances.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website