Not upheld: account restrictions and service failures complaint against Barclays Bank UK PLC

Decision detail

Summary

Mr J complained that Barclays' account restrictions delayed his property purchase completion from 1 August to 2 September 2025, causing financial losses of approximately £2,000. Mr J had been assured before opening the account that there would be no delays, but Barclays froze his £243,000 deposit on 25 July 2025 for regulatory compliance checks. The ombudsman found Barclays was entitled to conduct the review under regulatory obligations and could not have expedited it, but identified service failures in providing incorrect assurances and failing to call back as promised. The ombudsman upheld Barclays' compensation offer of £900 (£300 for service failures and £600 for costs) and rejected Mr J's claim for additional losses, finding he could have delayed travel or completed property work later.

The Ombudsman's reasoning

The ombudsman distinguished between the account review itself and service failings. While Barclays was entitled to conduct the review as part of its legal and regulatory obligations and could not have expedited it further, the bank did provide incorrect assurances and failed to follow up on a promised callback. The ombudsman found the £300 compensation for service failures was fair as the shortcomings did not span weeks or months, and rejected Mr J's claim for financial losses as he could have delayed travel or completed property clearance work later.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website