Not upheld: Account closure without notice complaint against New Wave Capital Limited

Decision detail

Summary

N, a company, complained that New Wave Capital Limited unfairly withdrew its credit facility after N attempted to make a Bill Pay payment to a charity without providing an invoice. New Wave Capital suspended the account on 11 September 2025 and announced closure on 11 December 2025, continuing to charge interest during the suspension period without providing detailed reasons for the decision. The ombudsman found that the firm acted appropriately in reviewing the account, had legitimate commercial discretion to close it, provided reasonable notice, and was justified in continuing interest charges. The complaint was not upheld.

The Ombudsman's reasoning

Financial services providers have legal and regulatory obligations to ensure accurate customer information and understand account usage, which may justify account reviews and restrictions. Firms have commercial discretion to decide whether to provide services to customers, and this discretion can be exercised legitimately without detailed disclosure of reasons. Reasonable notice was provided before closure. Interest charges were appropriate as they represent payment for borrowing money rather than account services, and the service fee was refunded.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website