Partially upheld: Account closure without notice complaint against James Brearley & Sons Limited

Decision detail

Summary

Mr W complained that James Brearley & Sons Limited closed his share dealing account in November 2015 without notification, preventing him from purchasing Aviva shares when he attempted to do so in June 2016. The ombudsman found that while the firm had a commercial right to close the inactive account under its terms and conditions, it breached its contractual obligation to provide written notice of termination. The ombudsman awarded £150 compensation for distress and trouble caused but rejected Mr W's claim for financial loss, finding he could have mitigated by reopening an account elsewhere and noting that share prices subsequently decreased.

The Ombudsman's reasoning

While James Brearley had a commercial right to close the account under its terms and conditions, it breached its own contractual obligation to provide written notice of termination. The firm's failure to notify caused distress and trouble to Mr W, warranting compensation of £150. However, Mr W could have mitigated any financial loss by reopening an account or using another provider, and share prices actually decreased after the closure date, so no financial loss compensation is justified.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website