FSA position on account closures and default charges
Generally, under FSA rules on dispute resolution and complaints, we would not expect any regulated firm to discriminate against a customer who makes a complaint.
However the relationship between a bank and its account holders, including the circumstances and manner in which accounts are closed, is governed by the Banking Code.
We have therefore raised this issue with the Banking Code Standards Board, and informed those firms involved that we have done so. As a result of those conversations, we understand that the Banking Code Standards Board intends to state its position on this issue presently. We encourage the industry to use this opportunity to demonstrate the value of the Code in ensuring fair and reasonable outcomes to such disputes.