Not upheld: account closure, lack of communication complaint against Lloyds Bank PLC

Decision detail

Summary

Mr K complained that Lloyds Bank PLC unfairly closed his accounts without adequate notice or explanation, causing distress and inconvenience. Lloyds had sent information requests in February and March 2025, and when Mr K did not respond, sent a closure notice in May 2025 with 65 days' notice. Mr K, living abroad, claimed he was unaware of the initial requests and that the notice period was insufficient. The ombudsman found that Lloyds acted fairly and in accordance with its terms and conditions, provided appropriate notice, used reasonable communication methods, and was entitled to make the commercial decision to close the accounts. The complaint was not upheld.

The Ombudsman's reasoning

Banks are strictly regulated and entitled to make commercial decisions about which customers to serve, provided they act fairly and in accordance with their terms and conditions. Lloyds complied with its contractual obligation to provide at least two months' notice before closure. The bank used appropriate communication methods (email and post) as permitted by the terms and conditions. While Mr K lived abroad and may have experienced postal delays, the ombudsman cannot hold the bank responsible for delays caused by third-party postal services outside its control. The bank's failure to provide specific reasons for closure is not unreasonable.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website