Not upheld: Account closure without notice complaint against TSB Bank plc

Decision detail

Summary

X complained that TSB blocked her accounts in January 2026 without proper explanation, causing her financial hardship including inability to purchase food. TSB stated the block was necessary to comply with legal and regulatory obligations but provided limited information to X. While the ombudsman acknowledged TSB's communication was inadequate and fell short of standards, it found the blocking itself was legitimate and justified by legal and regulatory requirements. The ombudsman accepted confidential information from TSB supporting the block and declined to award compensation, though it recognized X's distress and the impact on her wellbeing.

The Ombudsman's reasoning

The ombudsman found that TSB's blocking of the accounts was legitimate and in line with legal and regulatory obligations to prevent financial crime and protect customers from harm. While TSB's communication fell short and mistakes were made in providing clear information, the blocking itself was justified. The ombudsman accepted confidential information from TSB that justified the account block and concluded that compensation would not be fair or appropriate in these circumstances, despite acknowledging X's distress and financial hardship.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website