Upheld: account closure delays and fund transfer delays complaint against Barclays Bank UK PLC

Decision detail

Summary

Mr P, a UK account holder living in Thailand since 2007, requested transfer of funds and account closure in April 2023 after Barclays notified him it would no longer serve non-UK residents. Barclays delayed the transfer for nearly two years, citing address verification and transfer limit requirements but failing to clearly communicate these requirements or properly address Mr P's complaint. The bank finally accepted the documents as sufficient in July 2025 and transferred the funds on 11 July 2025. The ombudsman upheld the complaint, finding the bank should have resolved the matter by 31 August 2023 and ordered interest at 8% from that date plus £300 compensation.

The Ombudsman's reasoning

The ombudsman accepted that Barclays was entitled to require account closure due to policy and that six months notice was reasonable. However, the bank failed to clearly and promptly communicate what documentation was needed for the transfer. When Mr P complained, Barclays did not properly address the complaint for many months. Although the bank attempted phone contact, it should have used alternative communication when the phone number proved obsolete. Had the bank clearly explained the £10,000 transfer limit and verification requirements in April 2023, Mr P could have transferred funds much sooner, likely by the 31 August 2023 deadline. The bank's identification requirements became more rigorous after the closure date passed, further delaying resolution. The bank's offer of interest from 30 April 2025 was insufficient; interest should run from 31 August 2023 (the missed deadline) to 11 July 2025 (when funds were actually received).

How this compares

Source

Read the original decision on the Financial Ombudsman Service website