Not upheld: account closure and treatment of vulnerable customer complaint against MONZO BANK LIMITED

Decision detail

Summary

Mr T complained that Monzo Bank unfairly closed his account and provided poor service given his health vulnerabilities. Monzo closed the account on 20 June 2025 based on confidential regulatory and risk factors, providing 62 days' notice and offering support during the notice period. The ombudsman found the closure decision to be fair and necessary to meet Monzo's legal and regulatory duties, and that Monzo appropriately supported Mr T after his vulnerabilities were disclosed. The ombudsman found no evidence of unfair treatment or discrimination, and noted that Mr T successfully switched accounts before the closure date. The complaint was not upheld and no compensation was ordered.

The Ombudsman's reasoning

The ombudsman found that Monzo's decision to close the account was based on compelling evidence related to regulatory and risk factors, not on Mr T's health or vulnerabilities. Banks are entitled to set their own risk policies and close accounts in accordance with their terms. While Monzo should treat vulnerable customers fairly, this does not require the bank to reverse a closure decision or offer amended services once the relationship termination decision has been made. Monzo appropriately offered support during the notice period after vulnerabilities were disclosed. The ombudsman found no evidence that Monzo treated Mr T differently from other customers in similar circumstances, and therefore no unfair treatment or discrimination occurred.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website