Not upheld: account closure without detailed explanation complaint against Bank of Scotland plc trading as Halifax

Decision detail

Summary

Mrs A and Miss A complained that Halifax unfairly closed their joint account without proper explanation, causing them significant stress and worry. Halifax provided 65 days' notice and closed the account in line with its terms and conditions, but declined to explain the reasons for closure. The ombudsman found Halifax acted fairly and within its commercial rights, had a legitimate basis for closure, and was not obliged to provide detailed explanation to customers. No compensation was awarded as Halifax followed proper procedures and did not breach its obligations.

The Ombudsman's reasoning

Banks have commercial freedom to end customer relationships provided they act fairly, comply with terms and conditions, and do not breach law or regulations. Halifax complied with the contractual requirement of two months' notice. While the ombudsman acknowledged Mrs A's distress, Halifax had a legitimate basis for closure and was not obliged to disclose the specific triggers or reasons for account closure. The ombudsman found no procedural failure or unfair treatment.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website