A homebuyer in Oxfordshire faced potential completion delays after digital bank Revolut froze access to a £37,000 house deposit during what the company described as a “routine security review”.
The account holder’s wife had her Revolut account suspended for nearly three weeks, restricting access to a joint savings account containing funds needed for property completion. The couple had already given notice on their rental property and faced bouncing direct debits, raising concerns about their credit records.
Banking restrictions under anti-money-laundering rules
Under anti-money-laundering regulations, banks have legal powers to freeze accounts when unusual activity or sudden windfalls raise concerns. Financial institutions are not required to warn customers or provide explanations if they suspect potential issues, though customers can lodge complaints with the Financial Ombudsman Service if they believe a bank acted unfairly.
The incident highlights risks for property transactions at a time when home movers face increasing costs during the completion process. The case also adds to broader concerns about digital banking reliability for significant financial transactions.
At one point, both the wife’s account and the husband’s personal account were restricted, leaving the couple with no access to any funds. Call centre staff reportedly had limited ability to provide updates or expedite the review process, despite multiple missed deadlines for lifting the restrictions.
Account reinstated after three weeks
The accounts were reinstated following intervention from The Guardian’s consumer affairs team, approximately three weeks after the initial suspension. Revolut offered £175 as a goodwill gesture and stated that regulatory constraints prevented the company from providing detailed explanations during the review.
“We’re sorry our review process took longer than usual, and our communication didn’t reach its usual standards, particularly given the inconvenience during an important life moment,” a Revolut spokesperson said.
The case demonstrates potential vulnerabilities in the property completion process when buyers rely on digital banking platforms for deposit funds. With property transactions typically operating on tight timelines and market conditions remaining uncertain, unexpected account freezes could result in failed completions and financial penalties for buyers.
Customers affected by similar account restrictions can complain to the Financial Ombudsman Service if they believe their bank acted unfairly, though banks are not obligated to provide advance warning or detailed explanations when conducting security reviews.
