Upheld: unfair account freeze and denial of access to funds complaint against Nationwide Building Society

Decision detail

Summary

Trustees of a family trust complained that Nationwide Building Society froze their account without warning in April 2025 for 16 days while seeking information about the account's use. The trustees called Nationwide on the day they received notification but were unable to access urgently needed funds. Nationwide accepted it took longer than necessary to remove the block and offered £175 compensation, but the trustees disputed this. The ombudsman upheld the complaint, finding Nationwide acted unfairly by freezing the account without giving the trustees a chance to provide information and by maintaining the freeze excessively long. The ombudsman ordered an additional £75 compensation, bringing the total to £250.

The Ombudsman's reasoning

The ombudsman found that Nationwide acted unfairly by freezing the account without giving the trustees an opportunity to provide missing information and by maintaining the freeze longer than necessary. The ombudsman was satisfied that the trustees suffered considerable distress and inconvenience as a result of Nationwide's actions, particularly given the urgent need for access to funds. While Nationwide had accepted some errors, the ombudsman determined that the impact warranted additional compensation beyond the £175 already offered.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website