Not upheld: account restriction and fraud prevention procedures complaint against Bank of Scotland plc trading as Halifax

Decision detail

Summary

Mr M complained that Halifax unreasonably blocked a payment and restricted his account access, requiring him to visit a branch for security checks. He claimed the block prevented him from purchasing a vehicle and sought additional compensation. Halifax had paid £40 for acknowledged service failings including poor phone handling and branch service. The ombudsman found the account restriction was reasonable and proportionate given Halifax's regulatory duties to prevent financial crime, and that the £40 compensation already paid was fair for the service issues experienced. The complaint was not upheld.

The Ombudsman's reasoning

Banks have legal and regulatory duties to prevent financial crime and may restrict accounts where they have valid concerns. The ombudsman was satisfied the restriction was applied reasonably and in line with account terms. While the impact on Mr M was unfortunate, a less restrictive approach would not have addressed Halifax's security concerns. The call handler reasonably escalated to a branch referral as security checks could not be completed over the phone. Attending the branch sooner might have reduced the impact, so Halifax cannot be held responsible for the full extent of loss. The £40 compensation already paid was fair and comparable to similar cases.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website