Not upheld: account closure process and debt collection procedures complaint against Barclays Bank UK PLC trading as Tesco Bank
Financial Ombudsman decision DRN-6089103 of 2026-04-23T00:00:00+00:00. account closure process and debt collection procedures complaint against Barclays Bank UK PLC trading as Tesco Bank. Outcome: Not upheld.
Decision detail
| Reference | DRN-6089103 |
|---|---|
| Decision date | 2026-04-23T00:00:00+00:00 |
| Firm | Barclays Bank UK PLC trading as Tesco Bank |
| Product | credit card |
| Claim type | account closure process and debt collection procedures |
| Outcome | Not upheld |
| Remedy | No remedy ordered. The ombudsman declined to uphold the complaint. However, Tesco Bank separately acknowledged an administrative error occurring after October 2025 and paid £150 compensation and wrote off late payment fees and interest. |
Summary
Mr Y closed his credit card account with Tesco Bank on 28 June 2025 after making a payment, but an outstanding balance of £61.77 remained. Mr Y believed he had settled the account and was distressed to receive automated payment reminders and arrears letters. He complained that the bank's systems prevented him from paying the balance because he could not access his closed account online or reach the bank by telephone. Tesco Bank sent monthly statements to his registered address and text messages about the outstanding balance. The ombudsman found that the closure form clearly warned that accounts could be closed with balances, that Tesco Bank took reasonable steps to communicate the debt, and that Mr Y could have contacted the bank by telephone. The complaint was not upheld, though Tesco Bank later acknowledged a separate administrative error occurring after Mr Y settled the account and paid £150 compensation.
The Ombudsman's reasoning
The ombudsman found that the online closure form clearly stated that accounts could be closed with outstanding balances, that interest would continue to accrue, and that paper statements would be sent. Mr Y was required to tick a box confirming he understood these terms before closing the account. Tesco Bank took reasonable steps to communicate the outstanding balance through monthly statements sent to the registered address and text messages, which Mr Y acknowledged receiving. The ombudsman tested Tesco Bank's telephone system and confirmed that customers with closed accounts could still contact the bank by not entering their card number when prompted. The ombudsman concluded that Mr Y was not prevented from contacting the bank or paying the balance, and that Tesco Bank correctly reported the missed payments to credit reference agencies as it is obliged to do.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Barclays Bank UK PLC trading as Tesco Bank, all decisions | 53 | 10% |
Source
Read the original decision on the Financial Ombudsman Service website