Partially upheld: Account administration errors complaint against Barclays Bank UK PLC

Decision detail

Summary

Mr T complained that Barclays Bank UK PLC wrongly closed his account in late December 2025 based on an erroneous record indicating he was deceased. The bank accepted the error, paid £300 compensation, and reactivated the account on 2 January 2026. Mr T sought a four-figure sum, arguing the bank had not done enough to remedy the situation, particularly given his recent bereavement and the cascading consequences including cancelled direct debits and a letter from the DVLA addressed to his executor. The ombudsman partially upheld the complaint, increasing the compensation to £500 (an additional £200) to reflect the distress and inconvenience caused by the error and its effects, but declined further compensation for payment issues arising after the account was restored, as Mr T then had the ability to manage his payments.

The Ombudsman's reasoning

The ombudsman found that while Barclays acted promptly to reinstate the account once the error was discovered, the consequences extended beyond reinstatement. The direct debit cancellations and the DVLA letter addressed to Mr T's executor caused additional distress and inconvenience beyond the initial account closure. However, for issues arising after January 2026 when the account was operational, Mr T had the ability to manage payments and the bank could not be held responsible for his subsequent payment failures. The £300 initial compensation did not adequately reflect the distress caused by the error and its cascading effects, particularly given Mr T's recent bereavement, but a four-figure sum was not warranted given Barclays' prompt remedial action.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website