Not upheld: Account closure without notice complaint against Nationwide Building Society

Decision detail

Summary

A charity (R) complained that Nationwide Building Society's Know Your Customer review process in June 2025 requested excessive and unreasonable information, including proof of board composition, fund sources, and audited accounts, and threatened account closure if information was not provided. Nationwide maintained the requests were necessary to meet regulatory obligations and understand the governance of a charity holding significant funds. The ombudsman found the requests were reasonable and proportionate given Nationwide's ongoing KYC obligations, the charity's outdated regulatory records, and prior disputes over account ownership, and upheld Nationwide's right to close the account under the terms provided.

The Ombudsman's reasoning

The ombudsman found that Nationwide's KYC obligations are ongoing regulatory requirements, not limited to account opening. The information requested was appropriate given Nationwide's need to understand the governance of a charity holding considerable funds, particularly given the outdated Charity Commission records and prior disputes over account ownership. The requests were not unreasonable or arduous, and the threat to close the account was a legitimate consequence clearly stated in the account terms with reasonable notice provided.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website