BANK closed account unexpectedly/ Credit Rating ?

WraithShadow

I went into the Bank to pay off £30 outstanding on my wife's current account (she has a £100 O.D. limit). She'd received a couple of letters since FEB about not paying money in and clearing this pittance, so was guilty of not responding. Then I realised it was a joint account and so realised I was guilty as well. But when we tried to put money in, we found they'd closed the account ! And without informing us. They told me they could not accept any money now and that she/we would receive an adverse credit report. Please, anybody have any idea what form this might take and precisely the effects on my securing loans, new bank accounts, rental properties, etc... It all seems somewhat Draconian considering we're generally extremely law abiding and decent customers !

YorkshireBoy

WraithShadow wrote: »

I went into the Bank to pay off £30 outstanding on my wife's current account (she has a £100 O.D. limit).

I'm not clear. Was the balance £130 overdrawn? Or had they removed the facility and you were £30 unauthorised overdrawn?

She'd received a couple of letters since FEB

She had? You must have received the same letters, or they were addressed to both of you surely...it being a joint account?

But when we tried to put money in, we found they'd closed the account ! And without informing us.

You'd gone AWOL as far as they were concerned because you hadn't responded to their letters.

...she/we would receive an adverse credit report. Please, anybody have any idea what form this might take and precisely the effects on my securing loans, new bank accounts, rental properties, etc...

If they've registered a default (and I suspect they will have) then you'll find it very difficult to obtain mainstream credit for a considerable time...perhaps 3-6 years (the default will stay on your file for 6 years). Order your credit reports to find out the extent of the damage.

meer53

If you receive letters from a bank about an overdrawn balance and you ignore them, they will close your account. How can you say they didn't inform you, did you actually read the letters ? I'll bet you anything that it says something like "failure to respond will result in the closure of your account"

MoneySaverLog

YorkshireBoy wrote: »

If they've registered a default (and I suspect they will have) then you'll find it very difficult to obtain mainstream credit for a considerable time...perhaps 3-6 years (the default will stay on your file for 6 years). Order your credit reports to find out the extent of the damage.

If it was that bad the OP would have received a Default Notice in the post, which would only highlight how serious the situation is. Once issued I believe they would have a certain amount of time to "put things right" otherwise as you rightly say it will stop on your credit file for 6 years and become very difficult, if not impossible, to remove.

jalexa

WraithShadow wrote: »

She'd received a couple of letters since FEB about not paying money in and clearing this pittance, so was guilty of not responding. Then I realised it was a joint account and so realised I was guilty as well.

Whether the bank has behaved *entirely* reasonably depends on *exactly* what the letters said. Is there a particular reason why you are posting (for advice) but being economical with the information that board members require to provide meaningful advice?

I think the poster who suggests the bank considers the account holders have gone AWOL could be right, however given the seriousness of the consequencies I would want to test the bank records by making a Subject Access Request requiring provision of all the data the banks holds including copy correspondence, file notes, call recordings or transcripts, copy statements and in this case standard Terms and Conditions communications. The process will cost you £10, the bank an administrative fortune and there is always the possibility they will shoot themselves in the foot.

For the record because it could be relevant, do *you* hold any sole accounts at the same bank and the same address?

JuicyJesus

jalexa wrote: »

I think the poster who suggests the bank considers the account holders have gone AWOL could be right, however given the seriousness of the consequencies I would want to test the bank records by making a Subject Access Request requiring provision of all the data the banks holds including copy correspondence, file notes, call recordings or transcripts, copy statements and in this case standard Terms and Conditions communications. The process will cost you £10, the bank an administrative fortune and there is always the possibility they will shoot themselves in the foot.

What's the point? It's a waste of £10. They've already said they ignored the letters. All it would turn up is the letters (that they ignored, by their own admission) including warnings of default.

jalexa

JuicyJesus wrote: »

What's the point? It's a waste of £10. They've already said they ignored the letters. All it would turn up is the letters (that they ignored, by their own admission) including warnings of default.

I agree that it is conceded that two letters were ignored, but at this point in the thread (contrary to your "ignored warnings of default") unless I have missed something, the OP has not said what the letters stated or confirmed how the letters were addressed.

When you say "all it would turn up", that is almost certainly not an accurate statement. The SAR process will likely turn up quite a bundle of documentation.

Anyway, I also post for the benefit of others and to balance "bank apologist" posts which appear from time to time, whether or not a particular case related by an OP is deserving of support.