Not upheld: Account closure without notice complaint against Monzo Bank Ltd

Decision detail

Summary

Mr A complained that Monzo Bank Ltd closed his account without proper explanation and without sufficient notice to arrange alternative banking. Monzo relied on its account terms and conditions, which permit closure with two months' notice, and declined to explain its reasons. The ombudsman found that Monzo provided the full contractual notice period and, having reviewed confidential information, found no evidence of improper reasons for closure. The complaint was not upheld, as the ombudsman concluded Monzo acted fairly within its commercial discretion.

The Ombudsman's reasoning

Banks are generally entitled to make commercial decisions about which customers to serve, provided they act fairly and without improper reason. Monzo complied with its contractual obligation to provide two months' notice. The ombudsman reviewed confidential information provided by Monzo and found no evidence of improper reasons for closure. Monzo confirmed no adverse credit data was recorded. The ombudsman was not persuaded that Mr A's subsequent difficulties obtaining alternative banking were caused by Monzo's actions.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website