Not upheld: account closure without notice complaint against Barclays Bank UK PLC

Decision detail

Summary

Miss T complained that Barclays closed her current account without notice, causing her significant financial disruption as her wages were due the next day and her direct debits were cancelled. She was left without a bank account in her name, preventing her from making certain payments, and experienced considerable stress and worry about missing priority bills. Barclays subsequently admitted it should have given at least two months' notice and offered £200 compensation. The ombudsman found that Barclays acted fairly in closing the account as it had legitimate legal and regulatory reasons for reviewing the account and the terms and conditions permitted immediate closure, so the complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that Barclays had legitimate legal and regulatory reasons to review the account and that the review was in line with its obligations. The account terms and conditions permitted immediate closure without notice. Having reviewed all evidence, including confidential information, the ombudsman was satisfied that Barclays met the criteria to apply its terms for immediate closure and therefore acted fairly. Although Barclays later acknowledged it should have provided more notice, this did not change the conclusion that the closure itself was fair and within Barclays's rights.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website