Not upheld: Account closure without notice complaint against Capital Com (UK) Limited

Decision detail

Summary

Mr A complained about technical issues with Capital Com's CFD trading app that displayed incorrect profit and loss values, and the subsequent closure of his account. Capital Com identified and resolved the technical issue, offering £250 compensation which Mr A initially rejected but later accepted. The account closure was based on Mr A's economic profile indicating low income from government benefits, which Capital Com assessed as creating unacceptable risk for CFD trading. The ombudsman found both actions were fair and within Capital Com's terms, as the firm investigated the technical issue thoroughly and acted in Mr A's best interests regarding the account closure, which was a separate decision made prior to the complaint.

The Ombudsman's reasoning

The ombudsman found that Capital Com acted fairly in both matters. Regarding the technical issue, Capital Com investigated thoroughly, communicated proactively with Mr A, and the £250 compensation was reasonable given that no financial loss was evidenced. Regarding account closure, while the timing appeared suspicious, the chronology showed the closure decision process began over a month before the technical issue was reported, making the issues separate. Capital Com's terms permitted account termination, and the firm acted in Mr A's best interests given the high risk of CFD trading relative to his circumstances. Capital Com provided reasonable notice and allowed time to manage existing positions.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website