Not upheld: Account closure without notice complaint against Nationwide Building Society

Decision detail

Summary

Mr S and Mrs S complained that Nationwide unfairly restricted their joint account, blocking online banking and withdrawals without prior approval, causing severe financial hardship. Mrs S is elderly and vulnerable, with her pension paid into the account, while Mr S manages her finances and holds Power of Attorney. Nationwide provided confidential information to FOS justifying the restriction but would not disclose it to the customers. The ombudsman found the restriction was fair, reasonable, and proportionate, allowing Direct Debit payments and emergency access to essentials, and declined to award compensation.

The Ombudsman's reasoning

The ombudsman accepted confidential information from Nationwide that justified the account restriction, which could not be disclosed to Mr S due to FOS rules allowing confidential evidence. The ombudsman found the restriction was proportionate, balancing protection of the account with access to essential funds through the Specialist Support Team approval process. The ombudsman was satisfied Nationwide was progressing its review and that no less restrictive approach would adequately address the identified concerns.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website