Not upheld: account closure and alleged discrimination complaint against Lloyds Bank PLC

Decision detail

Summary

Mr F complained that Lloyds Bank PLC unfairly closed his basic bank account in June 2025 and failed to disclose the reason for closure. He argued the closure breached the Payment Account Regulations 2015 and amounted to discrimination given his health concerns made branch attendance difficult. The ombudsman found that Lloyds had a valid regulatory basis for closure under PAR 2015, as Mr F had access to another qualifying payment account opened after his basic account at the time of closure. Although Lloyds should have disclosed the reason, this failure did not materially affect Mr F's position. The ombudsman also found that Lloyds' flexible measures, including in-branch access and allowing a trusted individual to collect funds, constituted a reasonable response to Mr F's vulnerability. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that Lloyds had a valid regulatory basis to close the account under PAR 2015, as Mr F had access to another qualifying payment account opened after his basic account at the time of closure. While Lloyds should have disclosed the reason for closure, this failure did not materially affect Mr F's position or cause compensable impact. Regarding discrimination concerns, the ombudsman noted that Lloyds offered flexible measures including in-branch access and allowing a trusted individual to collect funds, which constituted a reasonable response to Mr F's vulnerability. The restriction on the account did not constitute an immediate closure as funds remained available.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website