Partially upheld: Card / payment disputes complaint against Nationwide Building Society

Decision detail

Summary

Mr M complained that Nationwide Building Society was holding him liable for three transactions totalling £1,000 that he claimed he did not authorise, occurring while he was detained under the Mental Health Act. Nationwide produced withdrawal forms, signatures, and evidence that the transactions were made in branch using a passbook account. The ombudsman found that Mr M was granted escorted leave for one hour per week and the branches were near the hospital, making it possible for him to have attended in person. The ombudsman concluded that Nationwide's decision not to refund the transactions was not unreasonable, but upheld the complaint in relation to £200 compensation for poor service and delays.

The Ombudsman's reasoning

The ombudsman found that while Mr M was detained under the Mental Health Act, he was granted escorted leave for one hour per week, making it possible for him to attend the branch with a nurse. The branches were in the vicinity of the hospital, making the journey feasible during escorted leave. The pattern of withdrawals (two separate days, £1,000 total not draining the account) was not consistent with fraudulent activity. Nationwide successfully authenticated the transactions through passbook and withdrawal forms. Without evidence of how an unauthorised third party could have accessed the passbook, and given Mr M could have attended the branch, the ombudsman found Nationwide's decision not to refund was not unreasonable.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website