Bank won't let me close my account

karenw

I have opened up a new account with another bank and yesterday i went into Lloyds to close down my current and savings account down but Lloyds told me it wasn't allowed as i have a DMP is this true and what difference does this make?

Mags_cat

karenw wrote: »

I have opened up a new account with another bank and yesterday i went into Lloyds to close down my current and savings account down but Lloyds told me it wasn't allowed as i have a DMP is this true and what difference does this make?

Do you owe Lloyds any money?

Generally, you won't be able to close an account that has an outstanding balance owed to them.

Dunno about the "Not if you have a DMP" business - that sounds slightly odd. If you have a DMP and you're paying them they shouldn't care where the money comes from, I'd have thought...

preable

If you owe them money then you wont be able to close the account otherwise you can

jonesMUFCforever

If the account is in Collections and is subject to an agreement to repay (where the account is overdrawn) then you won't be able to close it until it is either repaid or written off.

iereboy

If you are on a DMP, you obviously owe them money. You probably are with Collections as well.

Which bank in their right mind is going to close an account down if you owe them money?

If you lent money, how would you feel if someone did not return it?

Borrow it, spend it, PAY IT BACK!

karenw

I have an arrangement to pay them back through a dmp, i have made a few payments they are getting paid, i don't use that account for anything i have transferred all my direct debits and moneys going in to another account so i can't understand what they are going to gain from keeping the account open confused!

bengal-stripe

karenw wrote: »

...........so i can't understand what they are going to gain from keeping the account open confused!

Your payments - hopefully.

karenw

bengal-stripe wrote: »

Your payments - hopefully.

lol but isn't that going through collections as nothing goes in or out of my account?

iereboy

How do you expect them to get your money if you close down the account???? :wall:

jambosans

karenw wrote: »

i can't understand what they are going to gain from keeping the account open confused!

That account forms the basis of your agreement with them, and as such, unless you default and the debt is sold off, it's the account (and any associated debt) which contractually binds you to LTSB.

On a far more practical level, it's much easier to keep individual customer arrears separate - which a sort code and account number provides. What would you propose as an alternative? One big collections account to which every customer in arrears makes payments to, with staff keeping track of who's paid what with a giant ledger?

I don't mean to mock (too much), but, use a little common sense.

karenw

jambosans wrote: »

That account forms the basis of your agreement with them, and as such, unless you default and the debt is sold off, it's the account (and any associated debt) which contractually binds you to LTSB.

On a far more practical level, it's much easier to keep individual customer arrears separate - which a sort code and account number provides. What would you propose as an alternative? One big collections account to which every customer in arrears makes payments to, with staff keeping track of who's paid what with a giant ledger?

I don't mean to mock (too much), but, use a little common sense.

Thanks for explaining this to me! Is it true that if you don't use your account for a year the bank close it?