Lloyds TSB randomly have closed accounts - with no notice / warning

designafi

Ok so i opened one of those stupid Cash Accounts with Lloyds not long ago after returning to the country after 3 years. Little did i know it stopped you using your card at any other cash point other than Lloyds - silly me!

Since then i opened a HSBC Advance account and have been using that mainly.

I have a business account with Lloyds what takes over £6000 in payments per week.

Today i login to my internet banking with lloyds as i am expecting a refund on my visa debit card for a purchase i cancelled a month ago. I find that all my balances say "Balance unavailable". I phone Lloyds who tell me the account is closed. Did i not receive a letter? Nope i didnt. I immediatly checked my business account which appears to be fine, in credit and accessable via online banking.

I am not too concerned as to why Lloyds closed the account, i hardly use it. My main concern is whether they will close the business account or not - If it is closed it would cause me major problems as all my customers have a standing order setup for the 1st of every month. I honestly dont need the stress of having to update all those details with every customer.

Any advise on why an account would be closed and whether that would affect the business account would be appreciated.

Cheers guys

zppp

I think you should call them, in order to determine whether it is closed, or it's as simple as a stop on your account, and for what reasons. Without knowing for sure, any additional advice we give will be plucked from thin air.

designafi

Thanks for the reply. As soon as they open im going to give them a call.

iereboy

Call them as many times as you like, the call centre adviser will not know. Even if you got a clued up adviser, he will NEVER tell you the reason.

Head office has closed your account.

Possible reasons:

Fraud
Money laundering
Connections with certain countries
Abuse of staff

If the cash account was stupid, why open it?

Even more stupidly, why didn't you read the terms and conditions of the cash account. Cash account cards can only be used at Lloyds cash points and are for people with a poor history of credit and people who cannot manage their finances.

coolesticeking

To be honest, if you did not use it may be the reason why.. It costs money for the bank to keep the accounts open for use of the cards, statements etc so guess they took a business decision.

I think we sometimes forget that we do get FREE Banking in the UK and at the end of the day someone does have to pay for this.

hardboiled

This is quite a common thing. If they don't like the way you run your account they'll shut it. I've 100's of people complain about this activity.

No point complaining to the ombudsman because he'll just side with them.
The Financial ombudsman is not going to bit the hand that feeds him.

I've had it happen me and and still get letters saying I owe them money when my bank statements say a completely different story to the generated one they produce.

and the most annoying thing is " They won't talk to you".

I've told them to take me court if I owe them money ...and they won't!!

ayeh

It happends to my friend today, his whole family has an Accounts in Lloyds, and when hes taking cash from the cash machine, his card was captured and he immediately went to the lloyds branch to report about what happened to his card, and instead of helping him by the bank staff, they shut his account without informing, and all his money there, all his expenses are auto debit, and his salary also credited to this account. And its very ridiculous because hes asking the bank even the branch manager the reason of shutting his account... and they are not saying anything.. they said that they will just send a letter to him. my friend was very upset and hes been a long account holder of lloyds, ahe dont any criminal records, he dony have any record of fraud, or any scams, the only very upsetting was they shut the account and no explanation at all. i think its the rigth of the customer or the account holder to know the reason behind. and told him that he cannot open anymore an account with them. means he is totally block wihtout any reason. and they ask him to provide all the necessary IDs and documents to release his money.

and the only thing mentioned by customer service was, it effect the recent opened account with his wife. because they recently opened a joint account with his wife to save money for the down payment of the house. theres no other incoming fund to this account except his weekly wages only, and all their bills are auto-debit from this account. and the bank was just done like this without any explanation. its really very bad.

and the other thing rigth now, he tried to open an account to other bank but they refuse to assist his account opening when he said that lloyds suddenly close the account without information and no explanation for whatever reasons. but luckily he tried to some other banks and he opened a new account with them.

So what happened, hes whole family and including other friends and relatives are also close their account in lloyds and transfered to other banks because they get scared that it will also happend to them in the future what heppened to my friend.

Rupert_Bear

ayeh wrote: »

It happends to my friend today, his whole family has an Accounts in Lloyds, and when hes taking cash from the cash machine, his card was captured and he immediately went to the lloyds branch to report about what happened to his card, and instead of helping him by the bank staff, they shut his account without informing, and all his money there, all his expenses are auto debit, and his salary also credited to this account. And its very ridiculous because hes asking the bank even the branch manager the reason of shutting his account... and they are not saying anything.. they said that they will just send a letter to him. my friend was very upset and hes been a long account holder of lloyds, ahe dont any criminal records, he dony have any record of fraud, or any scams, the only very upsetting was they shut the account and no explanation at all. i think its the rigth of the customer or the account holder to know the reason behind. and told him that he cannot open anymore an account with them. means he is totally block wihtout any reason. and they ask him to provide all the necessary IDs and documents to release his money.

and the only thing mentioned by customer service was, it effect the recent opened account with his wife. because they recently opened a joint account with his wife to save money for the down payment of the house. theres no other incoming fund to this account except his weekly wages only, and all their bills are auto-debit from this account. and the bank was just done like this without any explanation. its really very bad.

and the other thing rigth now, he tried to open an account to other bank but they refuse to assist his account opening when he said that lloyds suddenly close the account without information and no explanation for whatever reasons. but luckily he tried to some other banks and he opened a new account with them.

So what happened, hes whole family and including other friends and relatives are also close their account in lloyds and transfered to other banks because they get scared that it will also happend to them in the future what heppened to my friend.

They do not shut an account without a very, very good reason. Perhaps they suspect you of money laundering?

ayeh

he is my close friend and hes not doing any money laundering, he got 4 kids, hes supporting them all, hes always budgeting hes money, if the bank told him the reason of shutting his account then atleast he can defend himself for whatever reasons.