Not upheld: Account closure without notice complaint against TSB Bank plc

Decision detail

Summary

Mr K complained that TSB removed £4,338.60 from his account without permission and closed his account. TSB had blocked the account in July 2025 to conduct a review and requested information about the source of various payments. Mr K provided partial explanations but stated some third parties were unwilling to share bank statements. After Mr K indicated he had provided all available information, TSB removed the disputed funds and closed the account. The ombudsman found TSB was acting in accordance with its legal and regulatory obligations to monitor accounts and understand fund sources, and that Mr K had not demonstrated entitlement to the funds, so the complaint was not upheld.

The Ombudsman's reasoning

TSB's legal and regulatory obligations required it to monitor accounts and understand the source of funds. The account terms and conditions permitted TSB to restrict access and refuse payments in certain circumstances. When Mr K could not or would not provide satisfactory information about the source of the disputed funds, and indicated he had provided all he could, TSB was entitled to remove the funds. Mr K had not demonstrated entitlement to the funds, and TSB's actions were proportionate and lawful.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website