Not upheld: account closure, overdraft recall, and default recording following suspected fraud complaint against TSB Bank plc

Decision detail

Summary

Miss O complained that TSB unfairly closed her account, removed her overdraft, and recorded a default after she received a fraudulent £120 credit. Miss O claimed she was vulnerable due to mental health issues and that TSB failed to communicate with her or make reasonable adjustments. The ombudsman found TSB acted fairly in closing the account based on Miss O's inconsistent and dishonest explanations regarding the £120 payment, which conflicted with her actual account activity. Although Miss O claimed to have notified TSB of mental health struggles, the ombudsman found her bank statements showed insufficient income to repay the overdraft balance in a reasonable timeframe regardless of additional support. The complaint was not upheld and the default was not removed.

The Ombudsman's reasoning

TSB was entitled to close the account and remove the overdraft in line with its terms and conditions and legal/regulatory obligations regarding fraud monitoring and customer verification. The ombudsman was not satisfied Miss O was honest with TSB about her involvement with the £120 payment, as her account of events was inconsistent with what actually occurred. Even if TSB had provided additional support or time, Miss O's bank statements did not demonstrate sufficient income to repay the overdraft balance in a reasonable timeframe to avoid the default. Therefore, the default was appropriately recorded and should not be removed.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website