Notice of bank account closure

Lealea3110 · 21 March 2018 at 10:44PM

Sorry if this is in wrong place just requesting some advice.......

My father recently had a heart attack and as the owner of a small business, me and my brothers took over the running of the business why he rested.

It is a construction business and why they did most of the manual work I took over the administration side.

For the first 2 weeks as I didn't have the cards to the business accounts and you cant seem to pay money into any bank these days without a card I deposited cash payments into my personal account and paid all bills/wages from there until we got sorted.

I have now received notification from Lloyds that I had to show where the money was from?
Banked with them approx. 5 years and all wages paid int account and all bills debited from same account. I'm not overdrawn have some savings (not a millionaire by any standards) but have no credit cards etc either.
I went to the appointment and showed them the business accounts etc have now received a letter in post stating the account will be closed within a month....

is this something I should be worried about and any idea what their problem is???

Again, sorry if in wrong place

maninthestreet · 21 March 2018 at 10:51PM

You've used a personal bank account for business purposes - that's the problem.

Hoogle · 21 March 2018 at 10:51PM

You used a personal account for business, I assume that you have explained the reasoning at your meeting with the bank.

Unfortunately it is against the banks terms and conditions to use a personal account for business. You can probably appeal the decision but just be honest with them and hopefully they will reassess your situation.

Lealea3110 · 21 March 2018 at 11:06PM

I explained all in meeting. They seemed to accept why, but this letter has arrived. Just wondered if it was going to have a negative affect on me?? Not meaning to sound selfish at all. If that's their decision then that's that. just wondered if it is recorded anywhere and if its going to cause me a problem trying to open another account?
I need to have my wages paid somewhere and don't want it to affect my mortgage payments etc

maninthestreet · 21 March 2018 at 11:16PM

What is the EXACT wording used in the letter?

DCFC79 · 21 March 2018 at 11:19PM

Lealea3110 wrote: »

I explained all in meeting. They seemed to accept why, but this letter has arrived. Just wondered if it was going to have a negative affect on me?? Not meaning to sound selfish at all. If that's their decision then that's that. just wondered if it is recorded anywhere and if its going to cause me a problem trying to open another account?
I need to have my wages paid somewhere and don't want it to affect my mortgage payments etc

Open up another bank account but with a bank not connected to Lloyds so Santander, Nationwide, Monzo or Starling Bank are options.

Lealea3110 · 21 March 2018 at 11:42PM

"After careful consideration the decision has been taken by Lloyds bank that we will be unable to offer you any further dealings as of 14/04/2018. We regret any inconvenience this may cause you and advise that you will need to make alternative financial arrangements as of this date. Any credited funds will be returned via cheque within !4 working days"

That is it!!!

maninthestreet · 21 March 2018 at 11:55PM

https://www.cifas.org.uk/contact-us/subject-access-request

Lealea3110 · 22 March 2018 at 12:03AM

My main concern was whether it would affect me opening another account elsewhere as obviously any missed payments with mortgage etc would have a negative effect on myself but ive just applied online with Barclays and its been accepted.... Still a little peeved at the handling of it all to be honest....

DCFC79 · 22 March 2018 at 9:34AM

Lealea3110 wrote: »

My main concern was whether it would affect me opening another account elsewhere as obviously any missed payments with mortgage etc would have a negative effect on myself but ive just applied online with Barclays and its been accepted.... Still a little peeved at the handling of it all to be honest....

You paid money into an account you shouldnt have done and Lloyds closed the account, you just took the wrong option.

John-K_3 · 22 March 2018 at 10:48AM

Lealea3110 wrote: »

My main concern was whether it would affect me opening another account elsewhere as obviously any missed payments with mortgage etc would have a negative effect on myself but ive just applied online with Barclays and its been accepted.... Still a little peeved at the handling of it all to be honest....

It shoukdn’t. They are not accusing you of fraud, or even wrongdoing, they just do not want you as a customer as you have operated outside the agreed terms and conditions of the account.

It’s a bit harsh, I think, but to avoid lond, drawn out complaints banks will tend to set out general rules and then stick to them scrupulously. There should be an appeal process, and I think that you should use it. Your reason for breaching the terms was quite a god one, and if the bank has any discretion about changing their mind then you’d hope that your case is a good one to overturn.

Notice of bank account closure

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