Revolut Ordered to Compensate Gambling Addict After Failing to Close Account

Digital bank Revolut has been ordered to pay compensation to a gambling addict for failing to close the individual’s account, which he was using to fund his gambling habit.

The user, identified only as Mr. H, contacted Revolut last year to inform the company that he was struggling to control his gambling. He said this was leading to mental health issues and making him suicidal.

He requested that Revolut block him from sending money to gambling accounts. The company provided him with information on how to do this, but it did not cover payments to crypto gambling sites.

When he asked Revolut to disable the cryptocurrency feature on his account, the company said this could not be done. He then suggested closing his account. Revolut said it was possible to do this, but said it would be meaningless as he could immediately reopen the account.

Gambling addicts frequently file lawsuits against gambling companies, alleging they encourage problem gambling. In this case, Mr. H took his case to the Financial Ombudsman Service (FOS) in the UK, a free service that settles complaints between consumers and businesses that provide financial services.

Revolut Failed to Help ‘Vulnerable’ Gambler

The FOS upheld the complaint and ordered Revolut to pay him £400 ($550) in compensation. In a ruling, Ombudsman Caroline Davies said the company should have done more to help the user, particularly given he had revealed how much distress his gambling was causing him.

Davies wrote, “Mr H was vulnerable, in crisis, seeking help and took the brave step in making Revolut aware of this. But despite this, it failed to take proactive steps to provide him with the help he’d requested”.

Davies also stated that she could not understand why Revolut did not close the user’s account, stating, “I am at a loss as to why Revolut couldn’t take the decision itself to close Mr H’s account permanently when it has the ability to do this and Mr H had requested that as a possible solution.”

Other Gamblers Bring Complaints Against Revolut

It was not revealed how much money he lost gambling or whether he has now stopped. In a similar complaint last year, the Ombudsman ordered Revolut to refund a gambler £365 she had lost online.

She similarly contacted the company to inform them of her problem, but the company did not immediately show her how to block gambling transactions. The Ombudsman ruled that Revolut should have put the block in place sooner, preventing the loss of £365 in the days after she informed the company of her problem.

In another case last month, the Ombudsman failed to uphold a complaint against Revolut. In that case, Mr. W had been gambling at unlicensed platforms, and Revolut said it was not aware that the transactions were gambling, so it did not intervene.

The Ombudsman sided with the company, saying the user had not placed a gambling block on his account and that there was no way for Revolut to recognize the transactions as gambling.

Revolut Encourages Gamblers to Add Restrictions

A Revolut spokesperson said, “We provide all our UK customers with a gambling block feature. When enabled, this tool automatically blocks card payments that are identified as being for gambling. We strongly encourage any customers with concerns about gambling to activate this feature in their app.”

In response to Mr. H’s problem of not being able to block cryptocurrency payments, the spokesperson added, “Revolut offers the option to disable the visibility of cryptocurrency tools for users who do not require them.”

It raises questions about how much responsibility companies should take to prevent customers from engaging in self-destructive behaviors, such as problem gambling. The FOS said it aims to provide fair and reasonable assistance to customers with complaints against financial institutions.

Its website states, “We believe that every customer who engages with us – both consumers and financial businesses – should have a better outcome or feel better informed following our involvement.”