Not upheld: account restriction and closure; poor communication complaint against ClearBank Limited (trading as Tide)

Decision detail

Summary

G, a company represented by its director Mr M, complained that Tide (ClearBank Limited) restricted and then closed its business account without adequate notice or communication. Tide suspended the payment link feature citing security concerns and restricted the account while conducting a review. After completing the review, Tide closed the account on 16 June 2025 and transferred the £1,500 balance on 2 July 2025. While Tide acknowledged communication failings, the ombudsman found the bank acted legitimately within its commercial discretion and regulatory obligations. The ombudsman upheld the investigator's recommendation of £300 compensation for poor communication but rejected Mr M's claim for additional compensation for alleged business losses, finding these were not proven to result from Tide's actions.

The Ombudsman's reasoning

Banks have legitimate commercial discretion to restrict and close accounts while conducting reviews to meet regulatory obligations. Immediate closure was reasonable in line with account terms. While Tide's communication could have been better, the decision to restrict and close the account was not unfair or incorrect. The claimed business losses were not proven to be caused by Tide's actions, and the £300 compensation adequately addresses the communication failings identified.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website