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

Decision detail

Summary

Mrs H complained that Nationwide unfairly suspended her credit card account around October 2025 after she could not access her Nationwide App. The suspension resulted from a review of her partner's accounts, which impacted her accounts due to their financial connection. Nationwide initially told Mrs H to visit a branch with identification, which was not viable as she had recently given birth, but later offered a telephone alternative. Nationwide acknowledged they should have notified Mrs H that her credit card was under review and offered £200 compensation. The ombudsman found this compensation fair and did not require Nationwide to take further action, as the account review and suspension were within their regulatory rights and procedures.

The Ombudsman's reasoning

The ombudsman found that Nationwide had the right to conduct account reviews and restrict or close accounts as part of their regulatory obligations. The review of Mrs H's partner's accounts legitimately impacted her accounts due to their financial connection. While Nationwide should have notified Mrs H that her credit card was under review, they acknowledged this failure and compensated her with £200. The ombudsman determined this compensation was fair given the limited impact on Mrs H (small credit available, minimal card usage) and the inconvenience and distress caused by the lack of notification. The ombudsman rejected Mrs H's concerns about the ongoing inconvenience of calling to make payments, finding this was within Nationwide's procedures.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website