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

Decision detail

Summary

Mr M complained that TSB blocked his debit card in July 2025 due to suspicious transactions and subsequently blocked his account access, leaving him unable to use online banking. Mr M claimed poor service, being passed between departments, and that the ongoing blocks amounted to 'constructive debanking' and discrimination based on his medical condition. TSB acknowledged service failings in handling the initial debit card block and paid £75 compensation, but maintained the blocks were necessary security measures and offered Mr M multiple verification options to remove them. The ombudsman did not uphold the complaint, finding TSB had legitimate security concerns and had provided reasonable options for Mr M to regain access, including telephone banking with a Personal Security Number and in-branch verification, which Mr M had not utilized.

The Ombudsman's reasoning

The ombudsman found that TSB had legitimate security concerns given the suspicious transactions and potential compromise of Mr M's internet banking. While acknowledging that Mr M was passed between departments (which TSB admitted), the ombudsman concluded that TSB took reasonable steps to assist Mr M in removing the blocks by offering multiple verification options: an online link, a Personal Security Number for telephone banking, and in-branch verification with ID. The ombudsman noted that Mr M ended calls before completing processes and did not subsequently use the PSN or attend a branch. The ombudsman rejected the 'constructive debanking' claim, stating TSB had not indicated it no longer wanted Mr M as a customer. While considering the Equality Act 2010, the ombudsman found TSB's security requests were not overly onerous or outside industry practice. The £75 compensation was deemed reasonable for the inconvenience caused.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website