Partially upheld: account closure service failure and complaint handling failure complaint against TSB Bank plc

Decision detail

Summary

Mr Y complained to TSB about the lengthy account closure process via Live Chat on 29 August 2025, which took 58 minutes with multiple agents. His complaint was not properly recorded or actioned, and TSB subsequently sent him responses to unrelated complaints and made multiple unfulfilled promises of callbacks. TSB initially offered £50 compensation, increasing it to £150 after Mr Y referred the matter to FOS. The ombudsman upheld the account closure complaint and found the £150 compensation fair, but dismissed the complaint about TSB's complaint handling as outside FOS jurisdiction since complaint handling is not a regulated activity.

The Ombudsman's reasoning

The ombudsman found that while complaint handling is not a regulated activity and therefore falls outside FOS jurisdiction, the account closure itself is a regulated activity that can be considered. Although the 58-minute Live Chat was longer than ideal, the time taken was reasonable. The ombudsman agreed with the investigator that TSB's increased compensation offer of £150 fairly reflects the distress and inconvenience caused to Mr Y regarding the account closure, and it would not be fair to require further increase.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website