Not upheld: Account closure without notice complaint against Bank of Scotland plc trading as Halifax

Decision detail

Summary

Mr G, as trustee of a trust established in 1997, complained that Halifax was wrongly retaining trust funds totalling just over £31,000. The trust account required two trustee signatures for withdrawals, and Mr G's co-trustee died in 2010, leaving Mr G as the sole trustee. Halifax's records showed the account was closed in January 2013, but the bank could not provide supporting documentation. Mr G possessed a passbook showing no withdrawals after April 2010 and believed the funds should still be in the account. The ombudsman found on the balance of probabilities that the account was more likely than not closed in 2013 with funds paid to trustees, noting that passbooks can be mislaid and banks typically verify identity through other methods when passbooks are not presented. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman applied the balance of probabilities test and concluded that Halifax's records showing closure in January 2013 constitute sufficient evidence that the funds were withdrawn without presenting the passbook. The ombudsman noted that passbooks can be mislaid and found later, and that banks typically verify identity through other methods when passbooks are not presented. While acknowledging the possibility of Halifax error or forgotten details by Mr G, the ombudsman found it more likely than not that the account was properly closed and funds withdrawn by trustees. The ombudsman also found it significant that Mr G did not contact Halifax between 2013 and his complaint despite receiving no statements.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website