Not upheld: account reactivation and identity verification requirements complaint against TSB Bank plc

Decision detail

Summary

Mrs G complained that TSB would not accept her ID documents to close her inactive account. Her account had become inactive after TSB warned her in May 2024 that she needed to make a transaction to keep it active. When Mrs G attempted to reactivate the account, TSB required ID and address verification, but her driving license address did not match their records or her council tax bill, and she was unwilling to provide a complete, unredacted benefit letter. The ombudsman found that TSB acted reasonably in applying standard verification procedures given the substantial balance in the account and the fraud risk associated with dormant accounts. TSB had offered flexibility by temporarily changing the address on their system to match the driving license.

The Ombudsman's reasoning

The ombudsman found that TSB's requirement for proper ID and address verification was reasonable and standard banking practice. Given the substantial amount of money in an inactive account, the fraud risk justified requiring verified identification. The ombudsman noted that TSB had been flexible by temporarily changing the address on their system to match the driving license. The ombudsman rejected the argument that redacted documents should be accepted, as complete verification is necessary for releasing funds from a dormant account. Standard verification procedures must be applied uniformly to all customers in similar positions.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website