Not upheld: Account closure without notice complaint against Monzo Bank Limited

Decision detail

Summary

Mr O complained that Monzo Bank unfairly closed his main current account without adequate explanation, causing him concern about how to repay his Flex credit account and loan. He also complained about the call handler's conduct, lack of financial wellbeing support, alleged discrimination related to a previous transaction dispute, and lack of direct response from the CEO. Monzo maintained it acted in accordance with its terms and conditions, provided two months' notice, and gave clear information about continuing to repay borrowing after closure. The ombudsman found that banks are entitled to make commercial decisions about which customers to serve and that Monzo followed fair procedures, provided adequate notice, and gave clear guidance about repayment options, therefore not upholding the complaint.

The Ombudsman's reasoning

The ombudsman found that banks are entitled to make commercial decisions about which customers to serve and are not obliged to explain closure reasons. Monzo followed its standard procedures, provided adequate notice, and gave clear information about continuing to repay borrowing after closure. Although Mr O was understandably worried, Monzo acted fairly by allowing two months to make arrangements and confirming that outstanding balances would not need to be repaid in full immediately. The call handler's conduct was appropriate given the constraints of what information could be disclosed.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website