Not upheld: Account closure without notice complaint against Teya Solutions Ltd.

Decision detail

Summary

T, represented by its director Mr D, complained that Teya Solutions Ltd improperly closed its payment processing account and withheld over £3,000 in funds for approximately two months. Teya Solutions also made an error in explaining refund procedures but offered £100 compensation. The ombudsman found that Teya Solutions acted appropriately in reviewing and closing the account as part of its regulatory obligations, that the two-month fund release timeframe was not unreasonably delayed, and that immediate closure was justified by the account terms. The ombudsman upheld the £100 compensation as reasonable for the procedural error and did not uphold the complaint.

The Ombudsman's reasoning

The ombudsman found that financial services providers have legal and regulatory obligations requiring account reviews, and that Teya Solutions appropriately exercised its discretion to review and close the account. The two-month timeframe for fund release was not unreasonably delayed given the circumstances. Immediate account closure was justified by the account terms. The firm's commercial discretion to close accounts is legitimate and does not require detailed explanation to customers. The £100 compensation for the procedural error was reasonable.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website