Upheld: Complaints handling failures complaint against Lloyds Bank PLC
Financial Ombudsman decision DRN-6475317 of 2026-07-06T00:00:00+00:00. Complaints handling failures complaint against Lloyds Bank PLC. Outcome: Upheld.
Decision detail
| Reference | DRN-6475317 |
|---|---|
| Decision date | 2026-07-06T00:00:00+00:00 |
| Firm | Lloyds Bank PLC |
| Product | Credit card |
| Claim type | Complaints handling failures |
| Outcome | Upheld |
| Remedy | £50 compensation already paid by Lloyds; no further award made |
Summary
Mr T complained to Lloyds after a £2.35 payment to a merchant was declined on 18 July 2025. Lloyds explained it had not declined the payment and resolved the matter informally but failed to send a written confirmation letter due to a system error. The ombudsman found Lloyds' records supported its explanation that the payment was authorised and the decline was merchant-related, not a bank error. However, the ombudsman upheld the complaint because Lloyds failed to provide written confirmation as it should have, and found the £50 compensation already paid was fair and reasonable for this service failure.
The Ombudsman's reasoning
The ombudsman found that Lloyds' internal records supported its explanation that the payment was authorised and the decline was likely due to merchant-side issues, not bank error. However, Lloyds admitted it should have sent a written resolution letter in July 2025 and failed to do so, causing unnecessary distress and inconvenience. The £50 compensation already paid was deemed fair and reasonable given the modest amount of the transaction and the nature of the service failure.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Lloyds Bank PLC, all decisions | 19,887 | 16% |
| Complaints handling failures, all decisions | 4,481 | 37% |
| Credit card, all decisions | 26,117 | 22% |
Source
Read the original decision on the Financial Ombudsman Service website