Not upheld: Service failures generally complaint against Frasers Group Financial Services Limited (FGFSL)

Decision detail

Summary

Mr P complained to FGFSL about issues with his Fraser Plus account, including two declined transactions in October and November 2025, dissatisfaction with a hard search on his credit file, and the hasty closure of his account. The October decline was caused by a retailer-placed flag outside FGFSL's control, while the November decline resulted from FGFSL's internal error in placing a fraud block. FGFSL upheld the complaint and paid £66 in compensation (£50 plus £16 balance write-off). The ombudsman found this compensation fair and reasonable, rejected the claim that the hard search should be removed, and determined the account closure was not an error based on call recordings showing Mr P's clear acceptance. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman distinguished between the two declined transactions: the October decline was caused by the retailer's actions (outside FGFSL's control), while the November decline resulted from FGFSL's internal error. However, the ombudsman found that the £66 compensation already paid was fair and reasonable because Mr P was able to complete the November purchase using cash, so the error did not prevent the transaction or cause significant lasting impact. Regarding account closure, the ombudsman reviewed call recordings and concluded that Mr P clearly accepted the compensation offer and agreed to closure without ambiguity, making the closure not an error. The ombudsman rejected the claim that the hard search should be removed, as FGFSL is obligated to maintain accurate credit file records.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website