Not upheld: Account closure without notice complaint against Lloyds Bank PLC

Decision detail

Summary

Mr S complained that Lloyds Bank PLC unfairly closed his account without providing clear reasons and without clarity on how to access his funds. Lloyds closed the account following a review and provided two months' notice, during which the account was restricted but Mr S could attend branch to withdraw funds. The ombudsman found that Lloyds acted in accordance with its legal and regulatory obligations to monitor business relationships, that the account terms permitted such closure, and that adequate notice and access instructions were provided. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that Lloyds' decision to review and close the account was in line with the bank's legal and regulatory obligations under UK financial regulation. The account terms and conditions permitted Lloyds to review accounts to ensure compliance with legal obligations. The bank provided adequate notice (two months) and specified how Mr S could access his funds (via branch attendance). While the lack of disclosure of reasons caused distress, Lloyds is not obligated to provide reasons for account closure decisions. The ombudsman was satisfied that the decision was made fairly and appropriately based on confidential evidence, and that the bank did not act with unfair bias or unlawful discrimination.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website