Closing accounts down?

Oliver16

has anyone had this happen as a result of claiming ? i am happy withy Lloyds and dont want to lose my account ?


Thanks

Orford

Originally used to happen occaisionally, now rarely as the FSA waiver direction to banks specifically mentions retalitory action by banks such as this

mike_rob

Yes, i put a claim in with the Alliance & Leicester in October 06, and in January 07 while i was working in norway for 2 months they closed my account, let my wages be paid in but did not pay any direct debits or outstanding cheques, got into a fair bit of trouble over this. Had to go to the cash machines in Norway and draw out my daily limit every day as they kept my account open for a week so i could get the money, so was charger a exchange rate, then when i returned to the UK i had to change my money back to pay bills and lost out again. I complained and got a nasty letter back saying that if i had kept my account in order then i would not have bank charges so my account would not have been closed. So be carefull

Oliver16

has anyone else had this happen as dont want the hassle of setting uip anotehr account? can you appeal if this happens i have been with them for years ?

Orford

In Feb 2007 The Financial Ombudsman adudicated in a complaint against the A&L on a complaint that they closed a customer account in response to a claim for bank charges.

The FOS decided that the closure was indeed unfair as it was punitve and retaliatory and fined A&L

From the FSA waiver directions:

(18)
the firm must not close accounts or threaten closure of accounts of customers when it might reasonably appear that this is for the purpose (or with the intent) of penalising customers that have complained about unauthorised overdraft charges for having complained, or deterring future complaints from these customers or others. For the avoidance of doubt, the firm may close accounts or threaten to close accounts where there is good justification for doing so based on the circumstances of the particular case;

http://www.fsa.gov.uk/pages/Doing/Regulated/Notify/Waiver/pdf/disp_monthly.pdf