Not upheld: account balance dispute - dormant/closed account complaint against Lloyds Bank PLC

Decision detail

Summary

Mr D complained that Lloyds Bank PLC refused to pay a balance of £3 18s shown in a savings account passbook dated March 1974, plus 50 years of interest. Lloyds was unable to trace any records of the account despite conducting thorough searches using multiple criteria. The ombudsman found that a passbook showing a balance at a specific point in time is insufficient to demonstrate an account remains open, and given the 50-year period elapsed, concluded the account was most likely closed long ago with records deleted. The complaint was not upheld.

The Ombudsman's reasoning

A passbook only shows a snapshot of an account balance at a specific point in time and is insufficient to demonstrate an account remains open with that balance still held. Accounts can be closed and funds withdrawn without presenting the passbook, and replacement passbooks may have been issued. Given 50 years have elapsed, if the account had been closed more than ten years ago, Lloyds would not be expected to retain records. Lloyds conducted thorough searches using multiple criteria and found no records, leading to the conclusion the account was most likely closed long ago with records subsequently deleted.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website