Our investigation

Banks’ terms and conditions allow them to close an account without giving any notice, although it is good banking practice to give 14 days’ notice, along with a reason for the closure, so the customer can respond and, if necessary, find another bank. The account closure email, which was also sent as a letter via post, said the bank could “close your account without providing a reason, by giving you at least 14 days’ notice”. However, the bank did not give any notice – its decision took immediate effect. We found nothing to suggest the bank had divulged the closure to anyone else. During our investigation, we also found the bank took 25 business days to acknowledge the complaint, whereas the Code of Banking Practice says banks should acknowledge a complaint within five business days.

Outcome

The bank offered $750 in recognition of the stress caused by its delayed acknowledgement of the complaint. The company accepted the offer.