Not upheld: account closure without notice and customer service delays complaint against Monzo Bank Ltd

Decision detail

Summary

Miss F complained that Monzo closed her business, current, and flex accounts without notice and provided poor customer service regarding repayment details on the flex account, resulting in accrued interest. Monzo closed the accounts after Miss F failed to respond to a documentation request on 7 April 2025 and subsequently failed to provide the requested information. The ombudsman found that Monzo's terms and conditions permitted immediate closure and that Monzo had a legitimate regulatory basis for its actions. The ombudsman rejected Miss F's assertion that the documentation request came after account closure and determined that Monzo was not obligated to provide notice or reasons for closure. No compensation was ordered, though Monzo had already waived the accrued interest.

The Ombudsman's reasoning

The ombudsman found that Monzo had a legitimate basis for requesting information and closing the accounts based on its regulatory responsibilities and terms and conditions. Monzo was not obligated to provide reasons for account closure or 60 days' notice. The ombudsman accepted Monzo's evidence that the initial documentation request was made on 7 April 2025, prior to account closure, and found that Monzo acted fairly in relying on its terms and conditions. Regarding the customer service delays on the flex account, the ombudsman determined that compensation was not warranted as Monzo had already waived the accrued interest.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website