Current Account Decision Reference 2021-0281

• Case Outcome: Rejected
• Reference: 2021-0281
• Date: 20 August 2021
• Year: 2021
• Subject Matter: Current Account
• Conducts Complained Of: Handling of fraudulent transactions
• Finantial Sector: Banking

Decision Ref:

2021-0281

Sector:

Banking

Product / Service:

Current Account

Conduct(s) complained of:

Handling of fraudulent transactions

Outcome:

Rejected

LEGALLY BINDING DECISION

OF THE FINANCIAL SERVICES AND PENSIONS OMBUDSMAN

The complaint concerns a current account.

The Complainant’s Case

The Complainant submits that on 30 October 2018 through to 6 December 2018, a series of

payments were debited from his debit card totalling €47,473 to a scam merchant. The

Complainant argues that the merchant in question did not invest his money but stole it. The

Complainant states that he submitted a chargeback dispute with the Provider on 24 January

2019.

The Complainant states that the Provider denied his claim on 29 January 2019 on the

grounds that “disputes for gains, losses or returns on financial investment, trading or binary

transactions cannot be addressed under the dispute process”. The Complainant submits that

the Provider advised him to approach the merchant to resolve the case.

The Complainant argues that at the time he authorised payments on his account and debit

card, he was not aware that the merchant was a scam merchant.

Following a review of the complaint submitted by the Complainant, the Provider’s

chargebacks department affirmed its decision by letter dated 26 June 2019 in relation to its

ability to recoup the funds that were invested. The Provider emphasised that the

transactions were authorised by the Complainant without any background checks being

completed by the Complainant prior to authorisation.