Not upheld: unfair account closure, alleged discrimination, alleged retaliation complaint against Bank of Scotland plc (trading as Halifax)

Decision detail

Summary

Miss H complained that Halifax unfairly and discriminatorily closed her current account following a chargeback claim, allegedly in retaliation for her complaints and as a pretext for her chargeback claims. She alleged Halifax failed to accommodate her reasonable adjustments for disabilities and that the account restrictions during the closure notice period caused significant detriment. Halifax did not disclose the reason for closure but relied on contractual terms permitting closure with 60 days' notice. The ombudsman found Halifax acted within its contractual rights and fairly, having provided confidential evidence of legitimate reasons for closure and having recorded Miss H's vulnerabilities. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that Halifax was entitled to close the account under its terms and conditions, which permit closure with two months' notice for any reason. While Halifax did not disclose the reason to Miss H, it provided confidential evidence to FOS demonstrating a legitimate reason for closure that was fair and reasonable. The ombudsman considered Miss H's vulnerabilities and found Halifax's actions were reasonable taking these into account. The ombudsman could not make a legal finding on discrimination (a matter for courts) but assessed fairness and reasonableness under industry standards. The ombudsman was satisfied Halifax had not acted unfairly regarding the account restrictions, the lack of disclosure of reasons, or the vulnerability procedures.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website