Not upheld: Account closure without notice complaint against Paysafe Financial Services Limited
Financial Ombudsman decision DRN-5197697 of 2025-02-20T00:00:00+00:00. Account closure without notice complaint against Paysafe Financial Services Limited. Outcome: Not upheld.
Decision detail
| Reference | DRN-5197697 |
|---|---|
| Decision date | 2025-02-20T00:00:00+00:00 |
| Firm | Paysafe Financial Services Limited |
| Product | Current account |
| Claim type | Account closure without notice |
| Outcome | Not upheld |
| Remedy | None. The complaint was not upheld. |
Summary
Mr N complained that Neteller closed his account without explanation in April 2024, after using it for international money transfers since July 2022. Mr N sought account reopening and an explanation for the closure. The ombudsman found that Neteller acted fairly and within its contractual rights, as the terms and conditions permitted immediate closure in certain circumstances which were satisfied based on confidential evidence reviewed by the ombudsman. The ombudsman also determined that Neteller had no obligation to disclose the reasons for closure. The complaint was not upheld.
The Ombudsman's reasoning
The ombudsman applied the principle that banks have commercial freedom to decide who they want as customers, provided they act fairly, comply with law and regulations, and follow their terms and conditions. The ombudsman reviewed the confidential evidence and concluded that Neteller met the criteria for immediate account closure under its terms. The ombudsman also found that Neteller has no obligation to disclose the reasons for account closure to customers.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Paysafe Financial Services Limited, all decisions | 43 | 28% |
| 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