Not upheld: account management, credit file reporting, customer service failure complaint against Bank of Scotland plc

Decision detail

Summary

Mr C complained that Bank of Scotland failed to close an inactive current account that had a zero balance since 2018 and had not been used since 2015, which he believed negatively impacted his credit score. Mr C had moved abroad in 2017 and did not return to the UK until 2024, making account management impossible during that period. When Mr C contacted BoS to address the account, staff were unable to locate it despite multiple contact attempts. The ombudsman found that BoS was not required to close the account without an explicit customer request and that reporting it as open to credit reference agencies was accurate. While acknowledging customer service failures in locating the account, the ombudsman upheld BoS's £100 compensation as fair and did not uphold the complaint.

The Ombudsman's reasoning

The ombudsman reasoned that banks are not required to close accounts merely because they become inactive with a zero balance without an explicit customer request. The responsibility to request closure rested with Mr C. Since the account remained open, reporting it as open to credit reference agencies was accurate. The ombudsman found no evidence that this reporting materially impacted the credit score. While acknowledging customer service failures in locating the account, the ombudsman considered the £100 compensation adequate for the frustration and time spent, rejecting the argument that minor delays warranted additional compensation.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website