Account closed after claim... anyone had this??

jonnywoods

Has anyone experienced their account being closed and/or their overdraft having to be paid off after having successfully claimed back bank charges?? In another thread I was told that this couldn't happen, but somebody else said their bank threatened them with it, although never actually followed through with the threat. My relationship with the bank isn't great, and I have made a claim before. I'm therefore slightly worried that if I claim again they might close my account or make me pay off my overdraft. Any stories/reassurance please anyone??

dunstonh

They cannot close your account for the reason you claimed back bank charges. However, they can close your bank account if you breach rules or you are still not running your account well.

jonnywoods

But because I am well into my overdraft, don't currently have much money coming in, and have had to re-claim bank charges TWICE, surely I'm not "running my account well"?? Could they then close my account and/or ask for my overdraft to be paid off?

dunstonh

They have to treat you fairly but at the end of the day there may come a point where the relationship breaks down and they start account closure procedures. However, it doesn't happen that often and only really on those that do no communicate with the bank.

worried_jim

Many banks will close down your a/c when your claim for charges as they can no longer make a profit from you so as a business you are no longer viable. They may use another reason of course......

jonnywoods

Have any of you actually had this happen to you?

dunstonh

jonnywoods wrote: »

Have any of you actually had this happen to you?

I havent but I used to work in a bank and closed a few accounts for either unprofitable reasons or continued abuse of banking facilities.

liberty_lily

jonnywoods wrote: »

Have any of you actually had this happen to you?

Hi jonnywoods,

LTSB closed our account after we had put in a claim for charges that is about double our overdraft. I must admit we had been having problems running our account well since OH gave up work due to stress which caused him to attempt suicide. Our income dropped dramatically at that point. Prior to the although we did incur a few charges as most people do, LTSB saw us as a valued customer and succeeded in selling us many of their over-priced products which in the end exacerbated our situation. LTSB were fully aware of our situation but showed no sympathy despite our best intentions to repay our debts. Suffice to say LTSB have not refunded our charges.

liberty_lily x

jonnywoods

Sorry to hear about all that Lily, what a nightmare situation.

Its interesting because some people say "they CANNOT close your account", whereas some say there's a decent chance that they will. Personally if there's a chance of it, I cannot currently risk putting in a claim.

dunstonh

Its interesting because some people say "they CANNOT close your account",

They cannot close your account on the basis of you reclaiming charges. They cannot threaten to do it or hint at it for that reason either. However, they can close your account if you breach other rules. They would be expected to be able to prove that the other reason was valid in the event of a complaint.

jonnywoods

OK then here's a question. IF they DO decide to close my account or make me pay my overdraft, would it happen after they have paid me off, or could they do it as soon as I put the claim in, even though the claim will be put on hold for months? This makes a massive difference to me.