can LLOYDS bank do this?

itsalongroad

I have been on a DMP with Lloyds for 4 years and became totally used to their ineptitude.
Anyway, in April I cleared the Current account overdraft debt. I had a statement showing my current acc was in debt by £1200 - I paid in £1220 as I epetcced some odd days residual interest charges.

I waited as instructed for 14 days to make sure nothing else left the account, and was told i was £1.58 in credit (and did I want a loan )

Now I want to close the acount and have it removed from my file, I was first told to ring the call centre, then told to visit the branch, then back to call centre etc etc. today I really kicked off (10 weeks passed now) and have been told its because I still have a credit card with the collections team, and I need to pay £5k to clear this and close both accounts

surely a load or rubbish?
Surely I am entitled to have my bank account - which I owe no money on closed?

Please advise

(any template letters to send to FSA or OFT appreciated - if I am correct)

Thanks
John

DarkConvict

So long as your accounts have not been lumped together you should be able to close it. Since it has been in credit you should not have a problem in doing so.

You could get in touch with the FOS (rather than FSA, although you could do both) over the bank not allowing you to close the account until you pay off all the other "separate" products first.

Im not aware of any template letters. I would write to your banks complaint department and state you have made solid efforts for over 10 weeks to close your account, but you have failed to do so. There is nothing in the terms and conditions, or applicable laws that can prevent this and as such you are sending it as a final request to have the account closed. Failure to do so within 7 days of acknowledgeable of this letter would cause complaints to be registered and draw in investigations from the FSA and FOS over the handling of the matter.
Trading standards and OFT will also be contacted in order to gather their thoughts on the matter.

I would probably ring consumer direct first as they are trading standards customer facing side - http://www.consumerdirect.gov.uk/about/how-we-help/