Not upheld: Account administration errors complaint against Lloyds Bank Plc

Decision detail

Summary

G, a small unregistered charity with income below £5,000, complained that Lloyds Bank Plc unfairly changed its fee-free Treasurers' Account to a fee-paying Community Account effective November 2025. G argued it should qualify for Lloyds' Charity Account due to its status as an unregistered charity. The ombudsman found that Lloyds was entitled to make this commercial decision, provided it complied with legal and regulatory obligations and gave adequate notice, which it did. The ombudsman determined that G does not qualify as an exempt or excepted charity under statutory definitions and therefore is not entitled to a Charity Account. The complaint was not upheld, and no remedy was ordered.

The Ombudsman's reasoning

Banks are entitled to make commercial decisions about which accounts and services to offer, provided they comply with legal and regulatory obligations and give customers adequate notice. Lloyds gave G reasonable notice of the changes and complied with the relevant terms and conditions. The fact that G is a small charity with limited income does not mean Lloyds acted unfairly or unreasonably. G was not entitled to a Charity Account as it does not meet the statutory criteria for exempt or excepted charity status. The ombudsman's role is to determine fairness in individual cases, not to comment on wider ethical issues or interfere with legitimate commercial decisions.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website