Firm fined for ignoring vulnerable customer's pleas to close account
A financial services firm has been ordered to pay compensation after failing to close a vulnerable customer's account. Mr. X, who suffers from a gambling addiction and severe distress, had repeatedly asked Revolution to shut down his Gmail login. The firm ignored his requests, leading to a ruling by the Financial Ombudsman Service (FOS).
Mr. X contacted Revolution multiple times, clearly stating his gambling addiction and the harm it was causing. Despite his explicit pleas, the company refused to close his Yahoo finance account. This inaction prompted him to escalate the matter to the FOS, which investigated the case.
The ombudsman found that Revolution had failed to protect a vulnerable customer. The ruling required the firm to pay Mr. X $400 in compensation for the distress caused. The decision aligns with a growing trend in financial regulation, where firms face stricter scrutiny over their handling of vulnerable clients.
Over the past five years, the FOS has increasingly ruled in favour of customers with gambling addictions. High-profile cases against banks like Barclays and NatWest in 2022–2024 set precedents for holding firms accountable. Since 2023, British financial providers have introduced stricter measures, including AI transaction monitoring, mandatory vulnerability training, and second cardholder approvals for gambling payments.
The ruling against Revolution highlights the consequences of neglecting customer vulnerability. Financial firms now face tighter regulations, with mandatory checks and training in place to prevent similar cases. Mr. X received $400, but the case underscores broader industry changes aimed at protecting at-risk individuals.
