Not upheld: Account closure without notice complaint against Paysafe Financial Services Limited

Decision detail

Summary

Mrs K complained that Neteller unfairly closed her account and retained approximately 20,000 INR in funds. Mrs K had used the account for gambling transactions. Following a review in July 2023, Neteller closed the account immediately and requested verification documents (selfie with ID and certified bank statements) before releasing the funds. Mrs K submitted multiple sets of documents but all failed verification checks. The ombudsman found that Neteller acted fairly in reviewing and closing the account in accordance with its legal and regulatory obligations to prevent financial crime, and that its verification requirements were reasonable and legitimate. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that Neteller had important legal and regulatory obligations regarding financial crime prevention and consumer protection. The firm was entitled under the account terms to review Mrs K's account and had sufficient grounds to close it immediately. The verification process requiring identification and certified bank statements was a legitimate requirement to comply with regulatory obligations. Mrs K had been clearly informed of what documents were needed and had submitted multiple attempts, but none satisfied the verification checks. The ombudsman found Neteller's position reasonable and did not find unfair treatment.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website