Not upheld: account closure - alleged retaliatory closure complaint against Bank of Scotland plc trading as Halifax

Decision detail

Summary

Mr N complained that Halifax closed his bank account in retaliation for raising a data subject access request and disputing unrecognised transactions. Halifax had notified Mr N in January 2025 that it would close his account after 65 days, and the account was closed in March 2025. The ombudsman found that Halifax's terms and conditions permitted account closure with two months' notice and that Halifax had provided this notice. After reviewing confidential information about Halifax's reasons for closure, the ombudsman concluded Halifax had legitimate cause to close the account and was not obliged to disclose its reasons. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman applied the contractual terms allowing Halifax to close accounts with two months' notice without providing reasons. The ombudsman reviewed confidential information from Halifax confirming legitimate cause for closure and found no evidence of improper motive or retaliation. The ombudsman concluded that Halifax's contractual right to close accounts is not negated by the existence of an ongoing dispute, and that Mr N's circumstances (having alternative banking arrangements and two months' notice) mitigated any hardship.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website