Upheld: account closure and administration; failure to provide clear information complaint against Barclays Bank UK PLC trading as Barclaycard

Decision detail

Summary

Mr S complained that Barclaycard restricted and closed his credit card account without notice during a dispute, causing embarrassment when transactions were declined. Barclaycard initially told Mr S the account could not be reopened but later indicated it would reconsider. The ombudsman upheld the complaint, finding that while the closure itself was within Barclaycard's contractual rights, the firm failed to clearly explain that it could reassess and potentially reopen the account. The ombudsman awarded £200 compensation for the delay in reconsidering Mr S's concerns and the confusion caused by contradictory information, but did not require compensation for the closure itself as it was within the firm's terms.

The Ombudsman's reasoning

While Barclaycard acted within its contractual rights to close the account and the closure itself was not unreasonable, the firm failed to provide clear and correct information to Mr S. Specifically, Barclaycard incorrectly told Mr S the account could not be reopened when it later demonstrated it could reassess and reopen the account. The firm should have explained this possibility more promptly and clearly. The £200 compensation is fair for the delay in reconsidering Mr S's concerns and the confusion caused by contradictory information.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website