Not upheld: Account closure without notice complaint against TSB Bank plc

Decision detail

Summary

Mrs B, a trustee of charity TLYP, complained that TSB closed the charity's accounts without adequate notice, causing significant stress and requiring trustees to use personal funds for payroll. TSB had identified that TLYP was operating as a registered charity but was registered on the accounts as a limited company, and sent a closure letter on 20 June 2025 with a closure date of 19 August 2025. Mrs B claimed the letter was not received, and was shocked to find the accounts closed on 19 August 2025, particularly as she had set up wage payments the previous day. The ombudsman found that TSB acted reasonably by sending the closure letter to the correct registered address with proper notice as required by the account terms, and was not obligated to provide additional notification or monitor payment activity. The complaint was not upheld.

The Ombudsman's reasoning

TSB was entitled to close the account due to the mismatch between the registered legal entity and actual operating entity. The closure letter was properly sent to the correct address with two months' notice as required by the account terms and conditions. TSB was not required to follow up with additional contact methods or to flag that payments should not be set up. The responsibility for non-receipt of the letter lies with Royal Mail, not TSB. Once alerted to the situation, TSB's extension of the closure date for one account was a fair response.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website