Partially upheld: Account closure without notice complaint against Lloyds Bank Plc
Financial Ombudsman decision DRN-5936092 of 2026-06-18T00:00:00+00:00. Account closure without notice complaint against Lloyds Bank Plc. Outcome: Partially upheld.
Decision detail
| Reference | DRN-5936092 |
|---|---|
| Decision date | 2026-06-18T00:00:00+00:00 |
| Firm | Lloyds Bank Plc |
| Product | Savings / ISA |
| Claim type | Account closure without notice |
| Outcome | Partially upheld |
| Remedy | Lloyds Bank Plc must pay Mr and Mrs C interest on their joint account balance at 8% simple interest from 15 May 2025 to 25 June 2025 for the distress and inconvenience caused by delays and service failings. (Note: £200 compensation and interest from 5 February 2025 to 20 February 2025 at 8% had already been paid.) |
Summary
Mr and Mrs C complained that Lloyds Bank closed their joint savings account without proper notice and delayed returning their funds of over £39,000. The closure notice letter to Mr C never arrived at their address in Croatia, and Lloyds initially sent a cheque which could not be cashed abroad. When Mr and Mrs C requested an international transfer, Lloyds failed to clearly communicate that certified identification documents would be required, and later delayed processing after receiving the documents. The ombudsman found Lloyds' account closure process was fair and not liable for postal failures, but upheld the complaint regarding the failure to communicate identification requirements and processing delays, ordering interest at 8% from 15 May 2025 to 25 June 2025.
The Ombudsman's reasoning
The ombudsman found that Lloyds did send closure notice letters in accordance with their process and terms and conditions, and cannot be held liable for the non-arrival of the letter to Mr C due to postal system failures. However, Lloyds made a clear error by failing to inform Mr and Mrs C on 5 February 2025 that certified identification documents would be required for the international transfer, and by delaying processing after receiving the documents on 13 May 2025. The ombudsman rejected allegations that Lloyds forged documents or that the Financial Ombudsman Service colluded with Lloyds, finding no evidence to support these serious allegations. The ombudsman considered Lloyds' processes for account closure and cheque payment to be reasonable, though acknowledging the inconvenience caused to customers living abroad.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Lloyds Bank Plc, all decisions | 19,867 | 16% |
| Account closure without notice, all decisions | 11,926 | 18% |
| Savings / ISA, all decisions | 7,689 | 22% |
Source
Read the original decision on the Financial Ombudsman Service website