Not upheld: account closure and delayed fund return complaint against Barclays Bank UK PLC

Decision detail

Summary

Mr E complained that Barclays failed to return his funds following account closure on 6 September 2024 with a balance of £5,202.41. After providing proof of entitlement in April 2025, Barclays requested security verification. Mr E, who was housebound following a car accident injury, could not satisfy all security questions, allegedly due to medication affecting his memory. Barclays reverted to requiring in-branch attendance, though offered alternatives including cheque payment. The ombudsman found Barclays acted fairly in implementing necessary due diligence and security procedures, and did not uphold the complaint.

The Ombudsman's reasoning

The ombudsman found that Barclays acted fairly in closing the account and complying with legal and regulatory due diligence obligations. While sympathetic to Mr E's mobility difficulties, the ombudsman determined that Barclays' security verification procedures were reasonable and necessary to ensure funds were paid to the correct person. The ombudsman noted that Barclays had already made exceptions by offering alternative arrangements, and that Mr E had demonstrated ability to visit a post office, making the cheque option viable.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website