Not upheld: account closure and alleged discrimination complaint against Nationwide Building Society

Decision detail

Summary

Mr A complained that Nationwide Building Society discriminated against him by questioning the source of funds he was depositing and subsequently closed his accounts in retaliation for raising a discrimination complaint. NBS explained it was required by law and regulation to make such enquiries and provided nearly three months' notice before closing the accounts. The ombudsman found that while the accounts of the branch interaction differed, both parties agreed Mr A was questioned and alleged discrimination, and that NBS had legitimate regulatory obligations to make such enquiries. The ombudsman determined the questioning was not motivated by racial prejudice and that NBS acted fairly and within its terms and conditions in closing the accounts, therefore the complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that while the accounts of what occurred in the branch differed significantly, both parties agreed Mr A was asked questions and alleged discrimination. The ombudsman determined that banks have extensive obligations to detect and prevent fraudulent and suspicious transactions, and such enquiries are routinely made regardless of transaction amount. NBS provided reasonable grounds for the enquiries that were not motivated by racial prejudice. The ombudsman was satisfied NBS provided adequate notice (over two months), acted within its terms and conditions, and had fair reasons for closing the accounts.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website