Not upheld: account closure and disputed transactions handling complaint against Nationwide Building Society

Decision detail

Summary

Mr T complained that Nationwide Building Society wrongly refused to refund two disputed transactions (£13.17 and £44.99) and unfairly closed his account, causing him distress and preventing access to funds for medication and living expenses. The ombudsman found that the disputed transactions were likely authorized by Mr T based on technical evidence and his own statements showing awareness of the activity, and that Nationwide's account closure decision was fair given its regulatory obligations. While the ombudsman found that Nationwide should not have immediately blocked the account and should have provided the correct contact email address (which caused a 9-day delay in returning funds), the ombudsman determined that the £150 compensation already offered was adequate and did not uphold the complaint.

The Ombudsman's reasoning

The ombudsman found that while Nationwide made service errors (providing incorrect email address and blocking the account during notice period), the overall account closure decision was fair and reasonable given Nationwide's regulatory and legal obligations to review accounts and establish the nature of transactions. Regarding the disputed transactions, the technical evidence showed they were authenticated using Mr T's credentials, and Mr T's own comments demonstrated awareness of the activity, making it implausible that a third party was responsible. The ombudsman determined that the £150 compensation adequately reflected the impact of the 9-day delay, as it was a relatively short period and Mr T was able to open an account elsewhere.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website