Not upheld: fund release following account closure - verification of entitlement complaint against Nationwide Building Society

Decision detail

Summary

Mr G complained that Nationwide Building Society refused to release funds remaining in his closed account without receipt of his employer's full, unedited bank statement. Mr G's employer provided only a redacted statement citing data protection concerns. The ombudsman found that Nationwide acted fairly in setting its own risk criteria and requesting verificatory evidence of wage payments, and that Mr G's inability to provide the unredacted statement did not obligate Nationwide to release the funds based on existing documentation. No compensation was awarded.

The Ombudsman's reasoning

Nationwide has strict legal and regulatory requirements to monitor accounts and verify customer entitlement to funds. Financial institutions are entitled to set their own risk criteria in relation to these obligations. While Mr G may not have direct control over his employer's provision of an unredacted statement, Nationwide is entitled to request verificatory evidence and is not obligated to be satisfied with what has already been presented. Nationwide's actions do not fall outside its terms and conditions or constitute unfair treatment.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website