Bank closed account

songfish

Hi! My sisters just rung me in tears because her bank has shut her account because she has had a direct debit for £3 rejected due to it taking her overdrawn. Her bank cited the fact that this was the third dd (in 10 yrs!). Unfortunately my sis split from her partner recently & hadnt registered her new address so any warning was sent to her ex - who didnt forward the mail. This seems a really unreasonable policy & im wondering if theres anything i can advise her to do? Is this normal practice??
Thnx

cifpower

Some banks do operate a "3 strikes and you're out" policy. Is her credit sound? If not, she should apply for a basic bank account immediately. A list of them and what they offer is HERE

I hope this helps in some way

benoit

Depends which Bank it is. I know that Co-Op has a 'Three strikes and you're out' policy when it comes to failed DD's or Cheques bouncing. All you can really do is open a basic account elsewhere but just remember in furture that some Banks are a bit sharp like this.

The letters going to an old address probably wont be a defence because the account holder has a duty to notify the Bank of any address changes.

benoit

Cif types faster than me. lol

magpiecottage

Contact the bank and point out that FSA Rule BCOBS 5.1.4 says "Principle 6 requires a firm to pay due regard to the interests of its customers and to treat them fairly. In particular, a firm should deal fairly with a banking whom it has reason to believe is in financial difficulty" and closing the account in this way is inconsistent with this.

Strictly, BCOBS 5.1.4 is only Guidance, not a Rule but they would, if necessary, have to persuade FOS of this.

songfish

Thanx for your suggestions everyone. Might be worth her writing to the bank re it being unfair. She usually keeps her account in credit so it seems really harsh that 3 strikes over 10 yrs means youre out!