reasons for banks to close accounts

book12

Compile a list of reasons why banks close customers bank accounts. There are some threats on this, and it's a good idea to have one thread dedicated to this instead of a few. The focus here is both current accounts and basic bank accounts.

I will start off:

• not following the terms and conditions
• don't make enough money out of you

On another note, could a bank close down (or maybe freeze or become dormant) a customers bank account (either basic or current) if he/she has no monthly (or regular) income for a while, or a long time due to a particlar reason (for example, redundancy and unemployment, etc...). Income could be benefits, money from parents, salary, or a combination, etc....

TRaven

Irrecoverable breakdown of relationship between bank and customer. I believe this was the justification used by certain banks to close accounts after they had been taken to court regarding charges.

rb10

book12 wrote: »

don't make enough money out of you

Would they really close an account just because of this? It would have to say so in the T&Cs.

book12

rb10 wrote: »

Would they really close an account just because of this? It would have to say so in the T&Cs.

It doesn't say so in the T&Cs.

Thought they would though, as I read somewhere on this forum about this issue.

simon_templar_2

Will close an account if the customer is abusive to staff or violent towards a staff member.

cifpower

Fraud? Would have thought that's a biggie

noah271007

Disputed accounts ...even if it breaches the banking code cos banks don't have to conform to the banking code if its not in their interests.

ShelfStacker_3

Fraud, repeated bouncing of payments or other credit related delinquency, suspected or known money laundering, abusive behaviour towards staff, breakdown in relationship, increased risk posed by the customer relationship, no longer qualifying for the account held...

...those are the biggies. But really, they don't need to give a reason. In fact, if it's money laundering, they can't give a reason. It's their bank, and so long as appropriate notice is given they can close your account at the slightest whim (as can you).

book12

rb10 wrote: »

Would they really close an account just because of this? It would have to say so in the T&Cs.

Example reason. http://forums.moneysavingexpert.com/showthread.html?t=1399161