Not upheld: unfair account closure and restriction complaint against Lloyds Bank Plc

Decision detail

Summary

Mr M complained that Lloyds Bank unfairly restricted and closed his account without providing a reason, and failed to treat him as a vulnerable customer with known health conditions. Lloyds closed the account with two months' notice but restricted access during that period, effectively treating it as an immediate closure. The ombudsman found that Lloyds acted in accordance with the account terms and conditions and its regulatory obligations, and that despite Mr M's vulnerability, Lloyds treated him fairly in the whole circumstances. The complaint was not upheld and no remedy was ordered.

The Ombudsman's reasoning

Lloyds is entitled to close accounts in accordance with terms and conditions and regulatory obligations. While the ombudsman expected Lloyds to consider customer vulnerabilities and treat customers fairly, the ombudsman was satisfied that Lloyds' legal and regulatory requirements justified the closure and that fairness was maintained when considering Mr M's vulnerabilities against those obligations.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website