Upheld: unreasonable account closure and unjustified fund retention complaint against Teya Solutions Ltd

Decision detail

Summary

E, a company holding a merchant services account with Teya Solutions Ltd, had their account closed in January 2026 without notice, with Teya retaining the funds for a stated minimum of 180 days citing anomalies in account activity. E complained that the closure was unreasonable and the fund retention unjustified. The ombudsman upheld the complaint, finding that while Teya had the right to close accounts, they failed to provide specific evidence of reasonable suspicion or chargeback concerns to justify immediate closure without notice or fund retention. Teya was directed to return all funds with interest at Bank of England base rate plus one percent from 16 January 2026, and pay £200 compensation for the disruption caused.

The Ombudsman's reasoning

While Teya has the right to close accounts and choose customers, immediate closure without notice can only be justified under limited circumstances. Teya failed to provide specific evidence of reasonable suspicion of illegitimate transactions or justification for withholding funds. E's documentation was not disputed by Teya. The immediate closure and fund retention were unreasonable given the lack of specific evidence provided by Teya.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website