Not upheld: account closure and fund withholding complaint against Skrill Limited

Decision detail

Summary

N complained that Skrill blocked and closed her account without notice and failed to return her funds of approximately $1,000. Skrill closed the account in May 2025 following an audit, requested verification documents, rejected those submitted by N, and charged an administration fee of $70.08. N disputed the closure and withholding of funds, arguing Skrill had a duty to return the funds under The Electronic Money Regulations 2011 and that disabling the withdrawal function after she submitted documents was misleading. The ombudsman found Skrill acted fairly and within its contractual and regulatory obligations, accepting Skrill's confidential explanation for the closure and determining that verification requirements were legitimate compliance measures. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that Skrill acted within its contractual rights and regulatory obligations in closing the account with immediate effect, as the terms permitted immediate closure in certain circumstances. The ombudsman accepted Skrill's confidential explanation for the closure and was satisfied it was fair. Regarding the funds, the ombudsman determined that Skrill's requirement for acceptable verification documents was a legitimate regulatory compliance measure, and Skrill did not act unreasonably in withholding funds when N failed to provide acceptable verification or in disabling the withdrawal function. The administration fee was properly charged under the terms and conditions.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website