Partially upheld: account closure and unreasonable delay in returning funds complaint against Skrill Limited

Decision detail

Summary

Ms M complained that Skrill blocked and closed her account without adequate notice and delayed returning her full account balance. Skrill restricted her account in March 2025 and subsequently closed it, initially offering refund only to another Skrill account. After Ms M requested a bank transfer, Skrill agreed but requested verification documents. Ms M provided all necessary documentation by 31 May 2025, but Skrill did not process the refund until 8 July 2025, resulting in a delay of over a month. The ombudsman upheld the complaint in part, finding the account closure decision was fair based on regulatory obligations and commercial discretion, but the delay in returning funds was unreasonable. Skrill was ordered to pay 8% simple interest on the funds for the delay period and €100 compensation for distress and inconvenience caused by poor communication and delays.

The Ombudsman's reasoning

The ombudsman found that while Skrill had legitimate grounds to close the account based on regulatory obligations and commercial discretion (with confidential reasons accepted), it caused unreasonable delay in returning funds. Skrill had all necessary documentation by 31 May 2025 but did not process the refund until 8 July 2025 without evidence of intervening action. Additionally, Skrill provided conflicting communication about transfer options. The currency conversion fees were found to be fair as they were disclosed in the terms and conditions which Ms M accepted. The ombudsman accepted that Skrill could apply currency conversion fees and that converting to another currency was reasonable when Ms M did not have a USD account.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website