Has your bank closed your account?

garrett_2

Help, can the Bank shut a Businness Account if you try and reclain charges any help much appreciated:money:

a11waysindebt

You might be best opening another business account with someone else,i.e someone you haven't or have no intentions of claiming off just in case.

As for the legality of it I'm not sure.

The only one I haven't made a claim against is my business account for good reasons.

Smasher

They could close your account in retalliation, but you complain to the FOS if they do. They will make them award you about £250 compensation & charge them around £400 for the effort..

Mark7799

They may also say there are other reasons for shutting your account - e.g. constant unauthorised overdrafts (if there were)

farkin28

I have a couple of accounts with same bank but i am only claiming charges for one of them will the bank close them both? please advise.

Tozer

Is there any authority for saying that the FOS will make them pay compensation?

Have to say that if there is then compensation doesn't necessarily help in opening another account. Plus there would be a big delay in the complaint being considered.

Are many banks closing accounts?

samfilby

I hold an cuurent account with Nat West. This is a second / redundant account. Over the last six years it has racked up approx 600 pounds in bank charges. This just from the account going over the overdraft limit and being issued with interest and an automatic 30 pounds charge.

What are the chances of Nat West closing this account if i start to take action ? It is a chicken and egg situation as the money re-deamed will be used to pay off the existing ammount then to close the account.

More importantly. I also have an anvantage gold account with nat west. Which is my main current account. I am happy with this and wish to keep it open. If the banks do start closing accounts....is it only the one relating to the claim or in general do they basically close all accounts you hold with them. Thanks for any advice / help and good luck everyone.

Smasher

Natwest don't usually close people's accounts. A&L were notorious for closing accounts of claimants but were found to have acted in retaliation by the FOS & had to award compensation (albeit only £200) to the affected customers. The FOS also charged them £400 for each investigation. Since then, bankers have generally tended not to close accounts.

They could however, call in your overdraft whilst you make the claim. This is Lloyds favourite dirty play, I'm not sure about Natwest.

samfilby

go ahead with a claim if you have closed the account? ie pay off the 700 pound overdraft. close the account then pursue charges relating to that account ?

natweststaffmember

The FOS charge banks £400 for an investigation whether it is upheld or not. There is nothing stopping you from getting rid of the old account and pursuing for the charges except for the OFT test case which currently means that all cases with regards to charges are likely to be on hold until that outcome is known.