Not upheld: Account closure without notice complaint against Teya Solutions Ltd

Decision detail

Summary

N, a company represented by its director Mr A, complained that Teya Solutions Ltd closed its business account without proper notice or explanation on 14 October 2025, retaining approximately £20,000 pending investigation. The initial investigator recommended £250 compensation for lack of explanation, but after Teya provided previously withheld evidence, a second investigator indicated the complaint should not be upheld. The ombudsman found that Teya acted legitimately within its commercial discretion, that immediate closure was reasonable, and that the approximately eight-week timescale for releasing funds was not unreasonable, therefore not upholding the complaint.

The Ombudsman's reasoning

Banks have legitimate commercial discretion to close accounts and regulatory obligations to review transactions and account usage. While Teya should have responded to the investigator's evidence request sooner, it was entitled to close the account without detailed explanation where it had legitimate grounds. Immediate closure was reasonable in these circumstances, and the approximately eight-week timescale for releasing funds was not unreasonable. The ombudsman accepted some of Teya's evidence in confidence as appropriate under the rules.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website