Current Account

A bank may record an account as in default once three to six months of arrears have accrued, provided proper demand has been made and the consumer is unable to repay within the required timescale.

A bank must provide clear warning of the consequences of account closure and loan default before taking such severe action, particularly where the customer is in financial difficulty but demonstrating ability to meet commitments.

A bank should withdraw an overdraft facility when informed that a business has ceased trading and requested account closure, even if the account cannot be closed while overdrawn.

A bank may close an account with proper notice under its terms and conditions, but must avoid creating avoidable inconvenience by continuing to process applications it knows will fail.

A bank must not continue to provide overdraft facilities when prolonged usage combined with objective indicators of financial difficulty (such as being in a DMP) suggests the customer is unable to repay sustainably.

A supplier of goods under a hire purchase agreement must ensure the goods are of satisfactory quality at the point of supply, as required by the Consumer Rights Act 2015.

A debt collector must hold evidence of the debt before pursuing collection and cannot require the consumer to prove payment of a debt they dispute.

A bank cannot reasonably treat a loan as in default when it retains possession of the funds needed for repayment and fails to use its right of set-off to discharge the obligation.

A bank must accurately process customer requests for account changes and cannot claim compensation should cover costs that would have been incurred regardless of the error.

Banks may legitimately block transactions for fraud prevention checks in accordance with their terms and conditions, even if the transaction is later confirmed as genuine.

A creditor must not record a missed payment on a consumer's credit file when no clear payment deadline was communicated to the consumer.

A creditor who sells a debt must report the account status accurately to credit reference agencies, marking it as sold or satisfied rather than leaving duplicate defaults recorded.

A bank must not change a customer's address on statements without proper justification, and must handle customer complaints about address changes accurately and consistently.

A bank must follow its own account closure procedures and not close a joint account in dispute without both account holders' consent, even if one holder attends branch.

Banks may close accounts in line with terms and conditions, but must communicate closure reasons clearly and respect stated customer communication preferences.

A packaged account provider must clearly explain that an opened account will remain open and continue to incur monthly fees even if the switch is cancelled.

A financial institution must provide appropriate support and monitoring for vulnerable customers with identified gambling problems, in accordance with FCA Consumer Duty and guidance on fair treatment of vulnerable customers.

A bank has a duty of care to identify concerning gambling activity patterns during overdraft reviews and offer appropriate support to vulnerable customers.

A financial institution must pursue resolution of payment transfer issues promptly and proactively, even when initial contact attempts fail.

Banks must provide adequate pre-travel advice about international transaction limits and spending restrictions, even though they are not responsible for declined transactions caused by merchant systems or card chip issues.

A bank must ensure account switchers have the necessary information and reasonable time to complete mandatory steps to claim advertised switch incentives.

A bank must act fairly when switching a customer from a student account to a standard account and must provide adequate opportunity to resolve disputes before taking enforcement action.

Banks must process account closure instructions without unnecessary delay, and compensation for avoidable delays should reflect actual inconvenience and stress caused rather than speculative financial loss.

Banks must monitor overdraft usage to identify repeat use patterns and take appropriate action where customers show signs of financial difficulty, as required under CONC rules.

A bank must identify and act upon clear signs of financial vulnerability and potential harm during account reviews, even absent explicit disclosure by the customer.

A financial institution's failure to delete online banking details after account closure, causing unwanted marketing emails, may be fairly remedied by modest compensation where the impact is limited.

A lender must carry out proportionate affordability checks before lending, assessing whether repayments are sustainable based on reasonable estimates of the borrower's income and expenditure.

A lender is not required to delay enforcement of a suspended possession order based on a consumer's expectation of future funds from personal circumstances, and must obtain consent from joint borrowers for payment arrangements.

In used goods sales after six months from supply, the consumer bears the burden of proving the goods were not of satisfactory quality at the point of sale.

Lenders must carry out proportionate affordability checks before lending and consider the information obtained to make a fair lending decision.

A lender must carry out proportionate affordability checks before lending, including understanding the borrower's regular living expenses alongside income and existing credit commitments.

Identity verification requirements under money laundering regulations apply to all customers regardless of existing account status, and compensation may be warranted for operational failures in communicating those requirements.

A lender may rely on credit reference agency data in account reviews even when the consumer has notified them of a disputed entry, provided the dispute remains unresolved.

The right to erasure under data protection law is not absolute and financial institutions may lawfully retain certain data for regulatory compliance purposes even after account closure.

A bank is not obligated to renew an overdraft facility, and where a temporary overdraft expires, the customer bears responsibility to contact the bank to arrange continuation if needed.

A bank may rely on terms and conditions permitting account modifications despite marketing materials promising perpetual free banking, provided adequate notice is given.

A consumer who provides consent for credit checks as part of a financial application cannot later require removal of the hard credit check from their credit file merely because they were given contradictory information beforehand.

A bank is not liable for service disruptions caused by automated security measures triggered by the customer's own actions, nor for postal delivery delays beyond its control.

A financial institution is not liable for providing accurate information about how the Current Account Switch Service (CASS) operates, even if the consumer relied on that information in declining a compensation offer.

A bank is not required to close an account or cancel standing orders unless it receives explicit instructions to do so, and the consumer bears responsibility for cancelling duplicate payments after a failed switch.

Financial institutions are entitled to implement regulator-approved processes for account conversions, and the ombudsman cannot require them to change procedures; reasonable adjustments must be assessed against what is actually offered as a

A payment service provider is not liable for transaction failures caused by how third-party merchants operate their payment systems rather than by the provider's own fault.

Banks have the legal and regulatory right to review and close customer accounts in line with their terms and conditions and regulatory obligations, without obligation to disclose reasons for the decision.

Credit reference agencies must report accurate, fair and up-to-date information about customer accounts, and firms must provide reasonable opportunity for customers to address arrears before reporting.

Banks have legal and regulatory obligations to review accounts and prevent financial crime, and may close accounts in accordance with their terms and conditions without providing specific reasons.

Banks have commercial discretion to close accounts without giving reasons, provided they give reasonable notice and act legitimately.

A business is not obligated to pay a switching incentive to a customer who does not meet the stated eligibility criteria, which explicitly required an active account on the specified date.

A financial institution is not responsible for a failed account switch where the customer attempted to switch an ineligible account type, and the switching criteria were clearly communicated upfront.

A business is not required to pay compensation for every error or miscommunication; compensation for distress and inconvenience must reflect actual detriment caused.