Not upheld: Account closure without notice complaint against Sumup Payments Limited
Financial Ombudsman decision DRN-4545743 of 2024-01-11T00:00:00+00:00. Account closure without notice complaint against Sumup Payments Limited. Outcome: Not upheld.
Decision detail
| Reference | DRN-4545743 |
|---|---|
| Decision date | 2024-01-11T00:00:00+00:00 |
| Firm | Sumup Payments Limited |
| Product | Current account |
| Claim type | Account closure without notice |
| Outcome | Not upheld |
| Remedy | None ordered. SumUp's apology for the payment error was accepted as sufficient. |
Summary
Mr B complained that SumUp unfairly closed his account without notice and failed to return his £200 closing balance to his nominated bank account, instead paying it to a different account that was subsequently restricted. SumUp argued the closure was permitted under the terms and conditions and regulatory obligations, and was not obliged to disclose reasons. The ombudsman upheld SumUp's position, finding the immediate closure was justified, SumUp had no obligation to explain its reasons, and there was no evidence the misdirected payment caused the account restriction. The complaint was not upheld.
The Ombudsman's reasoning
SumUp's account closure was legitimate and compliant with regulatory obligations and account terms permitting immediate closure in certain circumstances. SumUp is not obliged to disclose reasons for account reviews or closures. The payment error to the wrong account was acknowledged and apologised for, but there was no evidence this caused the bank D account restriction. SumUp's apology was deemed reasonable resolution.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Sumup Payments Limited, all decisions | 17 | 15% |
| Account closure without notice, all decisions | 11,650 | 19% |
| Current account, all decisions | 48,245 | 19% |
Source
Read the original decision on the Financial Ombudsman Service website