Upheld: Account closure without notice complaint against Nationwide Building Society

Decision detail

Summary

Mr W contacted NBS in July 2025 to enquire about transactions from 2023 he didn't recognise, and NBS agreed to send statements and discuss findings with him. However, NBS closed his account two days later based on a determination that Mr W had made a false fraud claim, without discussing the merchant information it had obtained or honouring its agreement to give Mr W two weeks to review statements. The ombudsman found Mr W was making legitimate enquiries rather than attempting fraud, particularly given his personal circumstances at the time of the original payments made it impossible for him to have authorised them. NBS's immediate blocking of the account caused significant distress to Mr W, who has mental health vulnerabilities and receives Personal Independence Payments. The ombudsman upheld the complaint and ordered £300 additional compensation for the unfair treatment.

The Ombudsman's reasoning

The ombudsman found that Mr W was making enquiries about unrecognised payments rather than attempting a fraudulent claim. The language used during the call and Mr W's circumstances (inability to make payments at the relevant time, secured card, two-year gap before enquiry) indicated legitimate questioning. NBS breached its agreement to discuss merchant information with Mr W before closing the account. The merchant information would likely have clarified the payments' legitimacy. NBS's decision to block the account immediately was unreasonable given Mr W's clean history, vulnerability factors, and the fact he was enquiring rather than claiming fraud. The account closure itself was justified under terms and conditions but the process was unfair.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website