Upheld: unfair account closure without proper notice complaint against Barclays Bank UK PLC

Decision detail

Summary

Mr V complained that Barclays unfairly closed his current and savings accounts without proper explanation or notice in May 2025. Mr V repeatedly sought clarification from Barclays and visited branches but received dismissive responses. Barclays maintained it was not obliged to disclose closure reasons and relied on its terms and conditions permitting immediate closure. The ombudsman found that while Barclays had the right to close the accounts, it failed to provide sufficient evidence to justify immediate closure without notice, and the closure procedure was unfair. However, the ombudsman upheld Barclays' position that it need not disclose specific closure reasons and would have closed the accounts regardless of notice period. The complaint was upheld with an award of £150 compensation for trouble and upset.

The Ombudsman's reasoning

While banks have the commercial right to close accounts, Barclays failed to provide sufficient evidence to justify immediate closure without notice. The ombudsman found the evidence provided by Barclays to be weaker than expected for such action. However, the ombudsman determined that even with proper notice, Barclays would still have closed the accounts based on the identified risk. The ombudsman upheld the complaint regarding the lack of notice but rejected the demand for disclosure of specific closure reasons, as banks are not obliged to disclose such information and confidentiality rules permit withholding sensitive information. Compensation of £150 was deemed appropriate given Mr V had alternative banking access and would have incurred costs regardless.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website