Not upheld: safeguarding failure and financial abuse complaint against TSB Bank plc

Decision detail

Summary

Ms L complained that TSB failed to safeguard Mr L, a vulnerable customer lacking mental capacity, by allowing him to withdraw the full balance of their joint account in August 2025 despite her prior warnings about financial abuse. TSB refunded the amount and paid £40 compensation but maintained it had not acted wrongly. The ombudsman found that as a joint account holder, Mr L was legally entitled to operate the account independently, and without a registered LPA or court order in place, TSB could not restrict his access. Although safeguarding concerns had been raised, the lack of legally valid restrictions meant TSB acted within its rights in processing the withdrawal. The complaint was not upheld as no financial loss resulted and no evidence suggested unfair treatment.

The Ombudsman's reasoning

As a joint account holder, Mr L was legally entitled to operate the account independently unless legally valid restrictions such as a registered LPA or court order were in place. The LPA had not been registered with TSB at the time of withdrawal. Even if TSB had shortcomings in record-keeping regarding safeguarding concerns, this would not have changed TSB's ability to allow Mr L to withdraw funds as a joint account holder. The identification presented was checked as per TSB's note, and there was no evidence that should have put TSB on notice that it shouldn't be relied upon. No financial loss occurred as the balance was restored in full.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website