Halifax rewards accts block?closed not happy with conduct of accts,UPDATED 11-11-10

pcyam

masonic wrote: »

If you're being paid on Friday, then it should not be too late to get that changed.

i checked with HR and luckily they said they never received an instruction from Halifax so business as usual.

pcyam

brokeinyorkshire wrote: »

The bank normally gives sixty days notice under the FSA rules.

Grounds to close an account can differ but if the customer has made numerous fraud claims for such things as payday loan companies then the bank usually asks them to close their account. If there is a security issue then the customer can also be asked to close their account.

When you say they are accusing you of ' doing fraud ', did they explain in what way?

Sorry I dont know how to do multi quotes,

the advisor and her manager wouldnt say, they were told to tell my mum and chances are i'll get the same answer, which was we arent allowed to say except we have been told the fraud team are not happy with the conduct of the accounts and the branch are going to close all the bank accounts and the savings/bonds too, and will do further investigation.

pcyam

anselld wrote: »

I am guessing "fraud" might be as simple as 3 people from the same family having the same password and memorable info and completing multiple transactions on three accounds from the same PC in a very short time.
The "fraud" being that you are not supposed to share security details with anyone, even same family.
Seems a bit harsh though if that is the case.

We dont have same passwords. Sharing passwords arent advisable but how is this fraud?? And the transactions arent always done on the same day. Plus, we only have one computer to share, surely thats not an offence for fraud, is it??

pcyam

jambosans wrote: »

There are certain things banks don't like which are not really covered by your terms and conditions, but the below, Get Out of Jail Free card, allows Halifax to close your account with no explanation, provided they give two months notice.


Now, Halifax's worst kept secret is the loose conditions under which you can qualify for their £5 Reward. It's well documented, you do it, I do it, and many MSE'ers do it, and there's nothing wrong with it, as we're not in breach of the terms and conditions. However your account conduct may fall into that grey area of "things banks don't like".

This may seem far fetched (so bare with me), and I'm not excusing Halifax or even proclaiming this to be the correct explanation, but moving the same small amount of money between four accounts, could be regarded (if you were a big business) as false accounting. I know your intent was never to deceive, but it has produced a false throughput on your accounts, which as a direct result may cause you to appear (on paper) as a high value customer*. In terms of personal banking, customers with higher behavioural/ internal scores are more likely to have pre-approved offers for credit cards, loans, etc. Hence why I've loosely associated your account conduct with false accounting, even though your intent was never to obtain credit from this activity. Even though false accounting is a type of fraud, it's dangerous to band about this term, as it implies intentional deception on your part, which is a libellous area I doubt Halifax want to enter, so closing your accounts is the easier option.

All that said, your not good business, as are many other customers with Reward Current Accounts, and until a change of terms and conditions is put in place, HBOS can't arbitrarily close customers accounts which do not meet their vision of a "good customer". I'm sure you're not the only one who transfers £200 forty times a month in a short space of time between four accounts, but they've "noticed" you, and as such, decided this behaviour is unacceptable.

FYI, all this information I have provided is sourced from a general knowledge of the banking industry, I have no insider-knowledge of HBOS fraud operations or whether in fact the scenario I've suggested is the reason for your accounts being closed. So at most, regard my post as a best guess. There's not much point in demanding a detailed explanation from Halifax, as, to my knowledge, they are not obliged to give one.

I agree with others, that they should provide two months notice, and as masonic suggests, they cannot hide under the guise of "fraud" in order to avoid providing notice. If they are not providing adequate notice, make a formal complaint.

*To give you an example, most banks monitor account conduct automatically. Therefore, Halifax's system may not be able to differentiate the same credit coming in and out five times from the same account. So, if we leave the savings to one side, on the current accounts, Halifax think you have £3000 of "new money" moving through these accounts each month. The reality is you've inflated the account throughput fifteen times the original £200.

The crazy thing is we have other money with them and its been with them for years, we've had credit cards etc use them closed them and they keep offering them to us, even now when I log on it says its guaranteed, wish I did open them months ago just purely for the cashback on rpoints, doubt it will get accepted now and i'm not chancing it either!! Think on Thursday i'm going to see what they say and if they close it they close it, end of an era and possibily for many too, and if they do then unless they give me a good enough reason then i guess its the complaints route (does anyone have any experience with the complaints team with halifax??).

And will this go on our credit file if they say its fraud??

masonic

pcyam wrote: »

And will this go on our credit file if they say its fraud??

The worst they could do is get the police involved. But if they've already tipped you off that they suspect you of fraud, then they can't be seriously contemplating taking it any further. This might end up harming your chances of getting new HBOS products, but beyond that there isn't much they can do besides informing the authorities.

johnmoney05

If you think there is nothing wrong with the transactions in your accounts, make sure they know you are going to make a formal complaint. Moving your money around between your family is not fraud. They can close your accounts without giving reasons, but you are entitled to compensation for the inconvenience and worry they caused.

jambosans

pcyam wrote: »

they keep offering them to us, even now when I log on it says its guaranteed,

Which may be due to their system misinterpreting your account throughput as significantly more. Your motives may seem clear (i.e. to get free fivers) but your conduct can also be interpreted as false representation. It's a vague analysis, one which Halifax would have difficulty substantiating, therefore closing your accounts with no more said is the easier option.

pcyam wrote: »

Think on Thursday i'm going to see what they say and if they close it they close it, end of an era and possibily for many too, and if they do then unless they give me a good enough reason then i guess its the complaints route (does anyone have any experience with the complaints team with halifax??).

You can complain on process (i.e. the manner in which the situation has been handled), and request an explanation. However, they are not going to give too much detail if they suspect fraud/ money laundering as this would be classed as "tipping off" - which is an offence in itself.

The likelihood is you are going to receive a blanket response stating they reserve the right to close your account with notice. Any investigation, once completed, may be forwarded on to the appropriate authorities but they will not inform you of the outcome.

Halifax are not judge and jury, so you may have done nothing wrong, as such, they may be closing your accounts as a precaution in the event your acts are deemed to be less than scrupulous.

pcyam wrote: »

And will this go on our credit file if they say its fraud??

I doubt it, but (someone correct me if I'm wrong), they may report it to CIFAS. The CIFAS website states:-

CIFAS wrote:

Members can also exchange information about accounts and services which are being fraudulently misused or fraudulent insurance and other claims.

Like I said though, I doubt it, as they would have to prove you acted fraudulently.

pcyam wrote: »

We dont have same passwords. Sharing passwords arent advisable but how is this fraud?? And the transactions arent always done on the same day. Plus, we only have one computer to share, surely thats not an offence for fraud, is it??

No it's not fraud. Not that it matters now (as they're closing your accounts), but ironically, if you were defrauded, and Halifax discovered you shared your personal login information (even amongst family), they may not accept liability (i.e. reimburse you) as you're in breach of the Online Service Conditions.

pcyam

jambosans wrote: »

Which may be due to their system misinterpreting your account throughput as significantly more. Your motives may seem clear (i.e. to get free fivers) but your conduct can also be interpreted as false representation. It's a vague analysis, one which Halifax would have difficulty substantiating, therefore closing your accounts with no more said is the easier option.



You can complain on process (i.e. the manner in which the situation has been handled), and request an explanation. However, they are not going to give too much detail if they suspect fraud/ money laundering as this would be classed as "tipping off" - which is an offence in itself.

The likelihood is you are going to receive a blanket response stating they reserve the right to close your account with notice. Any investigation, once completed, may be forwarded on to the appropriate authorities but they will not inform you of the outcome.

Halifax are not judge and jury, so you may have done nothing wrong, as such, they may be closing your accounts as a precaution in the event your acts are deemed to be less than scrupulous.



I doubt it, but (someone correct me if I'm wrong), they may report it to CIFAS. The CIFAS website states:-


Like I said though, I doubt it, as they would have to prove you acted fraudulently.



No it's not fraud. Not that it matters now (as they're closing your accounts), but ironically, if you were defrauded, and Halifax discovered you shared your personal login information (even amongst family), they may not accept liability (i.e. reimburse you) as you're in breach of the Online Service Conditions.

CIFA- oh no that aint good, I really dont need this to be on my file as I plan to buy a house in South Wales in the next few years!!

Is there any way to add notes on the credit file for CIFA's like when there is wrong info or errors done by a financial provider.

tobiascurious

you can use a couple of them fivers to get a subject access request

pcyam

tobiascurious wrote: »

you can use a couple of them fivers to get a subject access request

where from??????