Not upheld: account closure without notice or detailed reasons complaint against Nationwide Building Society

Decision detail

Summary

Mrs C complained that Nationwide Building Society unfairly closed her accounts with immediate effect in April 2025, claiming the closure was related to her former employment with the bank. The closure caused Mrs C difficulties including failed direct debits affecting her credit file and inability to transfer her ISA balance. Nationwide maintained it acted fairly and in accordance with account terms and regulatory obligations, providing confidential evidence to the ombudsman regarding its reasons. The ombudsman found that Nationwide was entitled to close the accounts under the terms and conditions, was complying with regulatory obligations, and had acted fairly based on legitimate risk-based factors, therefore not upholding the complaint.

The Ombudsman's reasoning

The ombudsman found that Nationwide was entitled to review Mrs C's accounts under the terms and conditions and was complying with regulatory obligations. The bank's decision to close the accounts was made fairly based on regulatory and risk-based factors. The terms and conditions permitted immediate closure in the specific circumstances that applied. The ombudsman was satisfied that Nationwide did not act unfairly or unreasonably, and that the bank was not obliged to facilitate an ISA transfer upon closure.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website