Partially upheld: unreasonable account restriction and unreasonable delay in releasing withheld funds complaint against Amazon Payments UK Limited

Decision detail

Summary

M, a business selling on Amazon, complained that APUK unreasonably blocked their account and withheld approximately £87,000 in funds for several months. APUK had requested information including a certified bank letter, which M's bank confirmed they do not provide. M provided the necessary information by 28 October 2025, but APUK kept the account restricted until 20 February 2026. The ombudsman found the restriction unreasonable beyond 28 October 2025 and ordered APUK to pay 8% simple interest per annum on the withheld funds from that date until release. The ombudsman rejected claims for interest on a personal loan taken by Mrs A and for lost merchant sales, as these fell outside APUK's responsibility.

The Ombudsman's reasoning

While account providers may reasonably restrict accounts pending information, any review must be conducted within a reasonable timescale. The necessary information was supplied by 28 October 2025, and the subsequent December request for minor personal details did not justify continued restriction. The review was not complex or time-consuming. The 8% simple interest reflects the loss of use of funds and is appropriate redress. However, a personal loan taken by Mrs A in her individual name and lost merchant sales (decided by a different Amazon entity) are not direct losses to M and fall outside APUK's responsibility.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website