Closing an A&L account.

Freddie_85

Last year I opened a new current account with Alliance & Leicester. It was one of their £100 offers to new customers, and along with cash-back I made £145.

I had to pay £500 into the account each month, which I did. However, I am starting university next week, I know I will not be able to do this, plus I have recently opened a student account with Natwest, and this will be my preferred current account.

The thing is, my A&L account was opened on October 2nd 2009. Does that mean I can close the account after a year without any penalties? If I kept it open would I still have to pay in £500 every month? I can no longer see any benefits from using this account.

Thanks for the help.

AnonymousForObviousReason

Yes I think this is the case, when I joined it was only a Direct Debit payment and £1,000 for 3 months - you're so close to October you may as well wait as long as you can put the £500 in (and leave for a week before moving - they've stung others for not having cash in there long enough).

Some people have had trouble closing their accounts (and then been charged for dormant ones) so to avoid hassle make sure you get acknowledgement from the call centre (also that you can no longer access the account via the internet). Finally also check that you don't need to go to also go to the branch and meet the manager.

ses6jwg

any branch can close it I have done a few myself.

It takes about 15 minutes as they also need to close the linked plussaver account as well

paulw98

ses6jwg wrote: »

any branch can close it I have done a few myself.

It takes about 15 minutes as they also need to close the linked plussaver account as well

Correct, i closed thursday. Took about 10 mins and all went smoothly

Consumerist

Freddie_85 wrote: »

. . The thing is, my A&L account was opened on October 2nd 2009. Does that mean I can close the account after a year without any penalties?

I'm about to close an A&L Premier current account within a year of opening. What penalty can they impose for closing the account?

nzseries1

paulw98 wrote: »

Correct, i closed thursday. Took about 10 mins and all went smoothly

Just to give my opposing view - I went into two separate branches to close my A+L Premier Direct account - neither of them could do it. The first staff member I spoke to went around every other staff member in the branch and was told by all of them that they couldn't do it in branch.

System

Many A&L branches have free to use telephones - which take you to telephone banking. That would give you another way if they can't do it at the counter.

apt

Consumerist wrote: »

I'm about to close an A&L Premier current account within a year of opening. What penalty can they impose for closing the account?

There's no financial penalty, but the travel insurance will be invalidated as soon as you close your account.

Loughton_Monkey

paulw98 wrote: »

Correct, i closed thursday. Took about 10 mins and all went smoothly

My wife and I went into local Santander to close all our A&L accounts. The poor girl simply hadn't got a clue. Took 1½ hours, with us standing at the window, and she staring at the screen etc.

Eventually, forms were signed and we got away.

However, closure of my wife's Premier Direct failed. We didn't know until she got an e-mail telling her to look at her Internet statements.

Now, the only way they can close it is "By Appointment" with the Manager, which they cannot fit in until a week today (27th September).

So good luck!

Consumerist

apt wrote: »

There's no financial penalty, but the travel insurance will be invalidated as soon as you close your account.

Thanks apt.

I would have expected that anyway. I also expect to lose interest payments on credit balances once I give notice of closure. Didn't realise such things are regarded as "penalties"

Incidentally, I have noticed on my latest statement that interest payments on credit balances on the former A&L current accounts are to end, anyway, from 18 November. I regard that as a change to Ts&Cs to my disadvantage - I may, therefore, close the account "without penalty" whatever that really means.

Consumerist

Loughton_Monkey wrote: »

Now, the only way they can close it is "By Appointment" with the Manager, which they cannot fit in until a week today (27th September).

I have never heard of any business which refuses to accept written notice. Seems to me that the whole legal system would fall apart if letters were an unacceptable form of communication.

As far as I am concerned, written notice of closure is irrefutable evidence of my instructions to the bank and Santander can take it or leave it. But, if they try to leave it, I'm off to the FOS as soon as I get their response. They can take their change out of that.