Not upheld: Card / payment disputes complaint against State Bank Of India (UK) Limited

Decision detail

Summary

Mr C complained that SBI unreasonably suspended his account and blocked his debit card after he made a payment that caused a small overdraft of just over £2 on 22 January 2026, despite having arranged for a substantial credit to arrive the same day. The account had no overdraft facility, and Mr C could not use his debit card for several days until a replacement arrived on 28 January, forcing him to rely on friends and relatives for payments. SBI also sent a misleading email stating the card was blocked 'as per your request' when this was untrue. The ombudsman found that while SBI acted within its terms and conditions and Mr C bore responsibility for maintaining sufficient funds, he could not have reasonably anticipated such action for such a small amount. The £150 compensation offered by SBI was upheld as fair and reasonable given the inconvenience and misleading communication, though Mr C retained the ability to make online transfers.

The Ombudsman's reasoning

The ombudsman found that while Mr C was responsible for ensuring sufficient funds in his account without an overdraft facility, he could not have reasonably anticipated that SBI would block his debit card for such a small overdraft amount. Although SBI acted within its terms and conditions (which allow blocking where 'significant risk arises with respect to your ability to repay any indebtedness'), the ombudsman acknowledged that Mr C could not have expected such action. The misleading email stating the block was 'as per your request' was inappropriate. However, since Mr C retained the ability to make online transfers and could arrange for friends and relatives to make payments on his behalf, the inconvenience, while real and embarrassing, was not as severe as a complete account freeze. The £150 compensation was deemed fair and reasonable for the inconvenience and misleading communication.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website