Not upheld: identity verification and account access restrictions complaint against eBay Commerce UK Ltd

Decision detail

Summary

Mr K complained that eBay Commerce UK Ltd unreasonably blocked his marketplace payouts pending identity verification, which he was not aware would be required. Commerce rejected his initial identification documents (an out of date passport) and subsequently accepted a valid driving licence, after which funds were released. The ombudsman found that Commerce's terms clearly permitted identity verification requirements and that as an FCA-regulated payment services provider, Commerce had legal and regulatory obligations to verify customer identity for anti-money laundering and fraud prevention purposes. The ombudsman rejected Mr K's arguments that such requirements were unfair, constituted corporate overreach, or were analogous to government powers, and found the temporary hold on funds was justified by Commerce's reasonable need to verify the recipient's identity.

The Ombudsman's reasoning

The ombudsman found that Commerce's terms clearly permitted identity verification requirements and the placement of holds on payouts if identity could not be verified. As a regulated payment services provider, Commerce has legal and regulatory obligations similar to banks, including anti-money laundering compliance. The ombudsman considered it reasonable for Commerce to verify the identity of the person receiving funds and to reject invalid identification documents. Once Mr K provided valid identification, Commerce promptly released the funds. The ombudsman rejected Mr K's arguments that identity verification requirements should not be in terms and conditions, that they constitute corporate overreach, or that only governments can block access to money.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website