Not upheld: account closure, service failure in notification complaint against Nationwide Building Society

Decision detail

Summary

Mrs C and Mr C complained that Nationwide Building Society unfairly closed their joint accounts without proper notice or reasons. Nationwide reviewed the accounts in April 2025 and closed them immediately, citing regulatory and risk-based factors (kept confidential). The closure prevented an ISA transfer and caused missed direct debits affecting their credit file. Mr C was not properly informed and only discovered the closure when attempting to use his account. Nationwide offered £150 compensation for this service failure. The ombudsman found Nationwide acted fairly within its regulatory obligations and account terms, and upheld the £150 compensation as appropriate, declining to order further action or compensation.

The Ombudsman's reasoning

The ombudsman found that Nationwide's account review and closure decision were driven by regulatory and risk-based factors, which are legitimate grounds for account closure. As long as the bank reaches decisions fairly, does not breach law or regulations, and acts in keeping with account terms and conditions, the ombudsman will not intervene. The immediate closure was permitted under the account terms and conditions. The ombudsman found no evidence of unfair bias or unlawful discrimination. While sympathetic to the financial impact on customers, the ombudsman determined this did not mean Nationwide acted unfairly or needed to compensate beyond the £150 already offered for the service failure regarding Mr C's notification.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website