Not upheld: Account closure without notice complaint against Modulr FS Limited

Decision detail

Summary

Mr O complained that Pockit unfairly blocked and closed his account without notice, and returned funds totalling just under £500 that had been paid into his account. Mr O stated the funds comprised gambling winnings (£450), a gift, and money owed by a friend. Pockit stated it took these actions to comply with legal and regulatory obligations. The ombudsman found the review was legitimate, the account closure was permitted under the terms and conditions, and based on confidential information about account operation, the ombudsman was not satisfied Mr O was entitled to the funds. The complaint was not upheld and no remedy was ordered.

The Ombudsman's reasoning

The ombudsman found that Pockit's review was legitimate and in line with legal and regulatory obligations to protect persons from financial harm and prevent financial crime. The account terms and conditions permitted account suspension and immediate closure. Based on confidential information about how Mr O was operating his account, the ombudsman was not satisfied Mr O was entitled to the funds, and therefore found Pockit reasonably complied with its obligations by returning the payments to source. Financial businesses have discretion to decide whether to provide account services unless there is unfair bias, unlawful discrimination, or breach of law or regulations.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website