Current a/c being closed because of maternity pay?

jcturner

It seems that my Premier Current Account with A&L requires me to pay in at least £1000 a month to keep it active and open. I am however on maternity leave at the moment and only receive the paltry £108.85 per week, which clearly no way makes over a grand in a month.

My understanding of the account terms is that the bank can close my account or withdraw facilities if the minimum amount is not paid in.

I have taken pre-emptive action and written to the bank asking that they will confirm that in the circumstances they will not withdraw my banking facilities because of maternity pay, but I am waiting to hear back from them.

I was wondering whether anyone else has come across this before and how they dealt with it.

If the bank replies with a "we'll shut the account", then I'd like to go to the papers with it! I was wondering whether this could amount to sex discrimination, even if not at the very least very bad PR for them!

Any thoughts?

1jim

I dont know the answer but could you move (if you have it) £1000 from a savings account and move it back the next day?
or
move accounts to a bank that dont have this rule

If they do say they will close the account I am not sure if that would be classified as sexual discrimination as they would argue that they would pursue the same action to anyone that didnot pay the required amount in to the account regardless of gender and reason, ie they would close the account of a man who took adoption leave/paternity leave etc........ dont agree with it (seeing as my wife is currently on mat leave) though so please dont misunderstand this last paragraph

good luck though
jim

thesaint

They will usually just reduce the interest payable on the account.
A&L do have an account that they charge £5 if the minimum funding requirement isn't met.

It all depends what account you have

LisaT186

The minimum for the Premier Account now is £500 a month. I don't think they will close it, but they may downgrade it to an ordinary current account if the terms and conditions aren't met. One way around it for the time being is to go to the cash point and draw some money out and then go into the branch and pay it in as cash each month (you only need to do £100 a month if your maternity pay is being paid directly in)! The systems can't work out cash payments on the account. Transferring from an account within A&L doesn't count towards your £500 per month. Failing that do you have a spouse or partner that has an account elsewhere that could set up a standing order into your account for a while? You can always take their money out of a cashpoint and give it back to them or set up a standing order to send it back?

domestic_goddess

I had an A and L premier account and they did not close it when I stopped getting my wage paid into it but made a £5 admin charge per month. They offered to downgrade me to their standard current account at no charge.

Justie

as others have said they won't close it but may charge you or downgrade the account - if you speak to them about it as a good will gesture they may wave a fee and keep offering you the benefits if it's for a set period of time but that would be very good CS rather than your right. With any of these premier accoutns you get 'free' benefits (good interest rates/ free travel insurance/ agreed overdrafts etc) that are covered by you paying in a minimum amount each month that the bank then benefits from...

joflo_2

I put my child benefit and working tax credits into the account as with the weekly payments this might come to over 500.

Moonbeam

Why not switch - it's generally hassle free and loads of different banks offer bank accounts which don't require a minimum monthly credit - I'd recommend either Nationwide flex account or Halifax current account - (just because they are the ones I have personal experience of) - they simply reduce the amount of interest you earn on your credit balance if you pay in less than £1000 per month and when you are paying in more than that consistently they change the interest rate again.

Both offer a switching service that means you don't have to worry about changing all your credits/debits....