A bank had granted a bounce back loan to a Taxi service, however the bank decided to later suspended the account and recall the funds.
What happened
A taxi service complained that, some months after being issued funds under a Bounce Back Loan, its bank suddenly suspended its account and later recalled the loan funds issued. It didn’t think this was fair.
In addition, the complainant was upset with the amount of time it had been without access to its account while the bank had been going through this process.
What we said
We looked into things and considered the evidence available to the bank which had prompted its action. We weren’t able to share this information with the complainant, but we were satisfied that the bank had sufficient reason to take the action it had.
However, we also considered how the bank had conducted its investigation and found that it had taken far longer than was reasonable. We found that the taxi service had been unnecessarily inconvenienced in this period from not having access to its account.
So, while we didn’t say that the bank needed to take any action to restore the funds to its customer, we did say that the bank should pay it an amount to compensate for the inconvenience caused by the unreasonably protracted time its process had taken.