Not upheld: account closure and restriction without notice or explanation complaint against Curve UK Limited

Decision detail

Summary

Mr A complained that Curve unfairly restricted and closed his account without notice, explanation, or prior contact, allegedly in response to a high-value transaction. Curve did not uphold the complaint, and the ombudsman's investigator agreed. The ombudsman found that financial institutions have the right to make commercial decisions about account provision and are required to conduct ongoing monitoring under regulatory obligations. Although Curve provided commercially sensitive information explaining the closure, the ombudsman accepted this in confidence and did not require the firm to share reasons with Mr A or contact him beforehand. The complaint was not upheld.

The Ombudsman's reasoning

Financial institutions have the right to decide whether to provide or continue to provide accounts to customers as a commercial decision. Curve is required to carry out ongoing monitoring of business relationships under legal and regulatory obligations, which sometimes results in account restrictions or closures. The terms permit Curve to close accounts with notice or immediately in certain circumstances. Curve provided commercially sensitive information that satisfied the ombudsman the closure was fair. The firm is under no obligation to share its reasons or contact the customer before closure.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website