Not upheld: Account closure without notice complaint against Nationwide Building Society

Decision detail

Summary

Mr H complained that Nationwide Building Society unfairly closed his account after restricting it and requesting information about cash deposits. Nationwide asked Mr H to explain the source of the funds, and when he provided only a withdrawal record from another bank, deemed this insufficient and closed the account immediately. The ombudsman found that financial institutions have the right to close accounts as a commercial decision, provided they comply with regulatory monitoring obligations. Since Mr H's response did not adequately establish the source of funds and he could provide no further information, the ombudsman concluded Nationwide acted fairly and did not uphold the complaint.

The Ombudsman's reasoning

Financial institutions have the commercial right to decide whether to provide or continue accounts to customers, provided they comply with regulatory obligations for ongoing monitoring. Nationwide's restriction and closure were in accordance with these obligations. Mr H's withdrawal record did not provide sufficient detail to establish the source of the funds in question, and he could not provide additional information when requested. Nationwide's terms and conditions permit immediate closure in certain circumstances, and the ombudsman was satisfied this was fair given the review conclusions.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website