Not upheld: account suspension, misleading information, KYC review handling complaint against American Express Services Europe Limited (AESEL)

Decision detail

Summary

Mr G complained that AESEL blocked his British Airways American Express Card without warning, provided misleading information about his account status, and failed to handle his complaint fairly. AESEL initiated a KYC review on 26 June 2025 and sent letters on 26 June and 11 July 2025 requesting information with clear warnings that the account would be suspended if information was not provided within 60 days. When Mr G failed to respond, the account was suspended on 27 August 2025. Mr G subsequently provided information on 29 August 2025 but was incorrectly told on multiple occasions that his account was active when it remained suspended. AESEL partially upheld the complaint and paid £50 compensation for the misleading information. The ombudsman did not uphold the complaint, finding that AESEL had properly suspended the account in accordance with regulatory obligations and contractual terms, and that the compensation paid was fair and reasonable.

The Ombudsman's reasoning

The ombudsman found that AESEL acted within its regulatory obligations and contractual rights when suspending the account, as it had sent clear written warnings on two occasions advising of suspension if information was not provided within 60 days. Although Mr G was provided with incorrect information about the account being active when it remained suspended, this error did not cause the suspension itself—Mr G's failure to provide required information did. The ombudsman concluded that the £50 compensation for the misinformation was fair and reasonable, and that Mr G's distress and mental health impacts were caused by his own failure to respond to the requests, not by AESEL's error.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website