Not upheld: account tracing and historical fund location complaint against Lloyds Bank PLC

Decision detail

Summary

Mr T complained to Lloyds Bank PLC after discovering a 1971 passbook showing a balance of £27.74 and believing the bank still held funds in the account. Lloyds conducted extensive searches using multiple identifiers and referred Mr T to 'My Lost Account', but no account was located. Mr T argued that the uncancelled passbook with official bank stamps constitutes proof of a debt owed by Lloyds and that the absence of a closing receipt proves the funds were never settled. The ombudsman found that Lloyds had done enough to assist Mr T in tracing the account, conducting thorough searches in line with FCA requirements, and that it was reasonable for Lloyds to be unable to locate or produce records for an account inactive for over 50 years. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman applied the FCA handbook requirement that firms make appropriate arrangements to enable customers to trace deposits. The ombudsman found that Lloyds conducted extensive searches using all available information and reached out to its Dormant and Inactive team. Given the 50+ year gap since last activity, it is likely the account was closed shortly after 1971. The ombudsman rejected Mr T's argument that the passbook alone proves the account still exists, noting that passbooks do not require presentation for closures and that if the account remained active, Mr T would likely have received notifications and tax certificates. The ombudsman also found it reasonable that Lloyds cannot produce records from over 50 years ago as it is not legally required to retain such information.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website