Not upheld: Account closure without notice complaint against Barclays Bank UK Plc

Decision detail

Summary

Mr O complained that Barclays unfairly closed his account without notice in August 2025 following a CIFAS fraud marker applied by another bank. Although the marker was later removed, Barclays maintained the closure decision and offered £100 compensation for the abrupt nature of the closure. The ombudsman found that Barclays reasonably exercised their contractual right to close the account based on information available at the time and were not obliged to reverse the decision when the marker was removed. The ombudsman upheld the £100 compensation as fair, noting that Mr O had alternative banking facilities available with restrictions that would likely have applied even with notice, placing him in no materially worse position.

The Ombudsman's reasoning

The ombudsman found that Barclays' account terms and conditions permitted closure in the circumstances presented. Based on the information available to Barclays at the time, the decision to close was reasonable and not unfair. While the closure was abrupt and caused inconvenience, Mr O had alternative banking access with restrictions that would likely have been applied even with notice, meaning he was not in a materially worse position. The £100 compensation for the lack of notice was therefore fair and proportionate.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website