Not upheld: account closure without notice and delays in fund release complaint against Monzo Bank Limited

Decision detail

Summary

T, a limited company, complained that Monzo Bank Limited closed their business account without notice in June 2025, blocking access to funds and causing operational disruption. T also complained about delays in retrieving the remaining balance. Monzo declined to explain the closure but offered £25 compensation for complaint handling delays. The ombudsman found that Monzo had reasonable concerns under their regulatory obligations and was entitled to close the account immediately under the account terms. The ombudsman was satisfied that no unreasonable delay occurred in releasing funds and upheld Monzo's right to make the closure decision, declining to uphold the complaint.

The Ombudsman's reasoning

Banks have legal and regulatory obligations to monitor accounts and mitigate financial risks. The account terms permitted Monzo to close the account with two months' notice for any reason, or immediately in limited circumstances. The ombudsman was satisfied that Monzo's concerns were reasonable and sufficient to justify immediate closure. While the closure was disruptive to T's business, Monzo was entitled to make this decision. The information requested to release funds was not onerous and there was no unreasonable delay in fund release.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website