Not upheld: Account administration errors complaint against Robinhood U.K. Ltd

Decision detail

Summary

Mr R, with a documented severe gambling addiction and mental health crisis, requested urgent account restrictions from Robinhood on 3 July 2025 via chat, expressing suicidal ideation. Robinhood delayed implementing restrictions until 9 July, during which Mr R deposited money and traded, incurring losses. Mr R requested full account closure but Robinhood only restricted deposits and trading, not closing the account until 15 September. Mr R claimed £25,000 compensation for psychological harm and relapse. The ombudsman upheld a £500 remedy (trading losses plus interest and distress compensation) but rejected the larger claim, finding Robinhood's delay was a contributing factor rather than sole cause of harm, and that restricting rather than closing the account was reasonable.

The Ombudsman's reasoning

While Robinhood failed to act immediately on 3 July and should reimburse trading losses, the ombudsman found that Robinhood's delay was a contributing factor rather than the sole cause of Mr R's mental health crisis, given his pre-existing severe addiction and mental health problems. The ombudsman considered it reasonable for Robinhood to restrict trading and deposits rather than close the account, as this prevented further gambling while allowing access to funds and account information. The ombudsman found it was not reasonably foreseeable that continued app access without trading capability would cause distress, and that market information was available from other sources.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website