Partially upheld: Account closure without notice complaint against TSB Bank plc

Decision detail

Summary

Mr L complained about TSB's closure of his current account in February 2025 while he was living abroad. TSB cited Mr L's non-UK residency status as the reason for closure, giving two months' notice. Mr L had an outstanding overdraft of approximately £2,900 and sought help from TSB on how to repay it within the notice period. TSB's templated closure letters directed customers to visit a branch, which was impractical for Mr L living abroad, and TSB did not provide clear guidance when Mr L contacted them for support. The ombudsman upheld the complaint in part, finding that while TSB was entitled to close the account, they failed to treat Mr L fairly by not providing adequate support when he sought help with repayment arrangements, and ordered TSB to pay £100 compensation.

The Ombudsman's reasoning

While TSB was contractually entitled to close the account due to Mr L's non-UK residency status and provided the required notice, the ombudsman found TSB failed to treat Mr L fairly when he actively sought support regarding repayment arrangements. TSB's templated letters were designed for UK-based customers and directed Mr L to visit a branch, which was impractical given his location abroad. When Mr L contacted TSB seeking guidance on how to manage the outstanding balance, TSB did not provide adequate support or clear information about his options. The ombudsman recognised that although TSB's processes did not allow for payment plans pending closure, TSB could have better managed Mr L's expectations and provided more helpful guidance given they knew his circumstances.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website