Not upheld: account closure and delays in fund release complaint against Wirex Limited

Decision detail

Summary

Mr A complained that Wirex Limited blocked and closed his account without proper explanation and took excessive time (approximately one month) to release his account balance of over £10,000, causing him stress and financial hardship including the need to sell his car. Wirex acknowledged technical delays and offered £100 compensation but maintained the account closure was necessary to comply with legal and regulatory obligations. The ombudsman found that Wirex's actions were fair and justified, as the account block and closure were legitimate exercises of Wirex's responsibilities to prevent financial crime, and that while service fell short on fund release timing, compensation was not appropriate given confidential information about the source of the funds and the nature of the review.

The Ombudsman's reasoning

The ombudsman found that Wirex's blocking and closure of the account were legitimate exercises of its legal and regulatory obligations to prevent financial crime. The account terms and conditions permitted immediate closure in certain circumstances, which the ombudsman determined were met based on confidential information. While Wirex's delays in releasing funds fell short of service standards, the ombudsman determined that awarding compensation would not be fair or appropriate given the circumstances surrounding the source of the funds and the nature of Wirex's review, as evidenced by confidential information the ombudsman was entitled to consider.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website