Not upheld: service withdrawal / branch closure complaint against Yorkshire Building Society

Decision detail

Summary

Mr R complained that Yorkshire Building Society unfairly closed its local agency on an island community where he lives, arguing this withdrew services from an underserved area with vulnerable customers. Mr R does not use online banking and relied on physical counter services. The ombudsman found that account providers have broad commercial discretion to decide where they operate, and that such policy decisions are matters for Parliament or the financial regulator rather than the ombudsman. The complaint was not upheld, and YBS was not required to reverse its closure decision.

The Ombudsman's reasoning

Account providers have broad discretion to decide where and how they operate. While the ombudsman acknowledged Mr R's concerns and the importance of the agency closure to him, decisions about physical presence in communities are matters for Parliament or the financial regulator, not the ombudsman. YBS acted within its legitimate commercial discretion in closing the agency, and the ombudsman found no requirement for YBS to maintain a physical presence to serve Mr R in the same manner as before.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website