Upheld: Account closure without notice complaint against HiFX Europe Limited trading as XE

Decision detail

Summary

Mrs S transferred SEK1.75 million from Sweden to the UK via XE in multiple transactions during August and September 2025, but the funds were sent to a closed XE account because she had not been notified of updated account details. XE had excluded Mrs S from the account closure notification as the account was intended for EU customers only, though the details had been provided to her on a temporary basis without clear communication of that limitation. The funds were returned after almost five weeks, during which Mrs S experienced significant distress. XE upheld the complaint and offered £513 for lost interest and £1,000 for distress and inconvenience. The ombudsman upheld this offer as fair and reasonable, rejecting Mrs S's claim for £50,000.

The Ombudsman's reasoning

XE failed to inform Mrs S that the account details provided were temporary, making it reasonable for her to use them. While the funds were ultimately returned and XE covered the financial loss through interest compensation, the distress caused by the loss of life savings for five weeks was significant. However, XE's mitigation efforts—including assigning a single point of contact, providing daily updates, and demonstrating it had no control over the delay caused by the third party bank—support that £1,000 is a fair and reasonable award for distress and inconvenience. The ombudsman rejected Mrs S's claim for £50,000, noting the FOS role is not to punish but to determine fair and reasonable outcomes.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website