Not upheld: Account closure without notice complaint against ClearBank Limited (trading as Tide Platform Ltd)

Decision detail

Summary

Mr B, representing a limited company, complained that Tide unfairly closed his business account in August without notice, causing significant disruption and costs. He sought reimbursement, compensation, an apology, and reasons for the closure. The ombudsman found that financial institutions have the commercial right to close accounts as part of their regulatory obligations, and accepted Tide's confidential justification for the closure as fair. Although the immediate closure caused foreseeable disruption, the ombudsman could only award compensation where a firm acted unfairly, which was not found. The complaint was not upheld.

The Ombudsman's reasoning

Financial institutions have the commercial right to decide whether to provide or continue accounts, subject to legal and regulatory obligations. Tide's ongoing monitoring obligations under UK regulations sometimes result in account closures. The ombudsman accepted Tide's commercially sensitive justification for the closure in confidence and found it fair. While the immediate closure caused foreseeable disruption, the ombudsman can only award compensation where a firm has acted unfairly, which was not found here. The administrative error regarding payment chases caused inconvenience but no adverse recording occurred, so compensation was not warranted.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website