Not upheld: Account closure without notice complaint against Barclays Bank UK PLC

Decision detail

Summary

Mr H complained that Barclays closed his accounts and withheld funds, and that he was unable to retrieve the money when directed to attend branch. Barclays had blocked the account twice and requested information on certain transactions to verify their legitimacy. Mr H provided evidence for some funds (employer payments) but lacked receipts or documentation for boxing ticket sales and word-of-mouth goods sales. The ombudsman found Barclays was entitled to close the accounts in line with their legal and regulatory obligations and that Mr H had not demonstrated sufficient entitlement to all withheld funds. Although the branch visit instruction was misleading, no compensation was awarded as Mr H could not evidence all the funds in question.

The Ombudsman's reasoning

Barclays has wide legal and regulatory obligations to monitor accounts and verify fund sources, which justify account blocks and closures when necessary. While the closure letter directing Mr H to branch was misleading, Mr H failed to provide sufficient proof of entitlement to the majority of withheld funds, particularly for the boxing tickets and goods sales. The ombudsman found it would not be fair or appropriate to order refund of funds lacking demonstrated entitlement, nor to award compensation for the branch visit given the overall circumstances and Mr H's inability to evidence all funds.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website