Not upheld: account restriction and closure without detailed explanation complaint against Zempler Bank Limited

Decision detail

Summary

Mr M, director of limited company C, complained that Zempler Bank Limited unreasonably restricted and closed C's account in July 2025 without providing adequate explanation or timely updates during the review process. Zempler stated the review would take 72 hours but later clarified this was not guaranteed, and ultimately took longer while the account remained restricted. The ombudsman found that Zempler acted within its legal and regulatory obligations to restrict and close the account, was not obliged to provide detailed reasons, and communicated reasonably with Mr M during the process. The complaint was not upheld, and no compensation was awarded because C, as a limited company, could not suffer distress.

The Ombudsman's reasoning

The ombudsman found that Zempler was strictly regulated and required to carry out ongoing monitoring of business relationships, which justified the account restriction and review. The ombudsman accepted confidential information from Zempler that justified the review and closure decision. The ombudsman determined that Zempler was under no obligation to provide detailed reasons for the closure or to guarantee a 72-hour review timeframe, and that the communication provided to Mr M during the review was reasonable. The ombudsman also noted that as C is a limited company, it cannot suffer distress, so compensation could not be awarded for Mr M's personal inconvenience.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website