Lloyds TSB - Closing all my accounts!!! Please help!

notts_phil

The bank has excercised its right under the terms and conditions of the account by giving you notice. You would have seen this when you opened the account.

pwuk

I suggest that you contact your relationship manager and also a director from the private banking team. If this action is being taken as a result of unusual activity on your account etc., little can be done however if it boils down to transactions that can be easily explained and evidenced I expect that the private banking team would look to do what they can to retain your custom.

anselld

pinsix wrote: »

I have business accounts here and abroad which i use for my LTD companies and my business account with Lloyds has not been closed strangely.

Why is that strange if they are closing your personal accounts because they suspect you are using them for business?

pinsix wrote: »

As i said i have a cash business on the side here in the uk which does not make me a lot of money but its not run by my LTD company but as a sole trader and that cash goes into my personal account obviously as well as HMRC payments..

"cash business on the side" is still business and will not be welcome by any bank in someone's personal account.

pinsix

anselld wrote: »

Why is that strange if they are closing your personal accounts because they suspect you are using them for business?



"cash business on the side" is still business and will not be welcome by any bank in someone's personal account.

Well as a sole trader you use your personal account for business as long as HMRC knows it. As a sole trader you cant keep your cash under a mattress and you cant use your LTD company account either.

Ben8282

I find this to be all very strange. In fact I have difficulty believing it. For a start, how come you have two Lloyds credit card accounts? I am a Lloyds/TSB customer and as far as I am aware you can have only one Lloyds credit card account. And what is this 'by invitation only' black amex? I assume you mean the Airmiles Duo Premier but this is not by invitation only. The 'by invitation only' black Amex is the Centurion charge card, but these do not have an advertised credit limit as they are charge cards and not, as far as I am aware, issued by Lloyds/TSB.

I am also surprised that your branch Manager was not able to be of more help to you, at least as far as giving you a general reason is concerned. Unless this is connected to fraud, I cannot understand why Lloyds no longer wish to offer you a bank account; if they feel you no longer qualify for the Private banking account, unless you are bankrupt, they should at least be able to offer you some sort of account. Have you checked your credit record to make sure there is nothing terrible on it. To behave in this way Lloyds/TSB must be in a state of something near panic.

Also banks do NOT send letters to tell people their credit cards will be closed in such circumstances; they CLOSE them then tell you afterwards because they will worry that you will immediately max out the card and not repay. And what have they said about the balances of the credit card accounts? Are they asking for full immediate repayment or what?

A final thouht from reading your op. Are you running an illegal money lending business financed by 0% balance transfers?

pwuk

@Ben8282
Slightly off topic but I have two Lloyds CC and with Private Banking you become legible for premium cards that do remain invitation only with starting credit limits of £20k.

As regards your other comments I agree with you.

notts_phil

pinsix wrote: »

Well as a sole trader you use your personal account for business as long as HMRC knows it. As a sole trader you cant keep your cash under a mattress and you cant use your LTD company account either.

Most banks would disagree with you.

Yorkie1

pinsix wrote: »

Well as a sole trader you use your personal account for business as long as HMRC knows it. As a sole trader you cant keep your cash under a mattress and you cant use your LTD company account either.

That appears to be confusing the tax rules from HMRC, with the T&Cs which any bank can set for the running of accounts with it. The two do not have to match.

ChiefGrasscutter

This bit about use of personal account for 'business' always puzzles me. Obviously I appreciate you can't use a personal account for paying in/out for a Ltd company which you might run as the Ltd company is a seperate legal entity.

Bu, Say if I'm full time employed I get paid and it goes into my personal bank account. If I pay for claimable business expenses then this comes from my bank account and my company later refunds me and that goes back into my account.
This is all OK by the banks.

But if I'm a self employed sole trader (so not a limited company) I get paid by clients to my name and that goes into my personal bank account and when I pay for buying business stuff that goes out of my account.
but this is not OK apparantely?

This first is using a personal bank account for receving payment for business work done by the person.........and the second is using a bank account for errr... business work done by the person.
...and the difference is?


I suspect the real problem is the NUMBER of transactions passing through the account. An employed person is likely to be paid once a month, a sole trader might be paid on a almost daily basis.

olly300

pinsix wrote: »

Well as a sole trader you use your personal account for business as long as HMRC knows it. As a sole trader you cant keep your cash under a mattress and you cant use your LTD company account either.

I suggest you read the bank's terms and conditions.

While you can legally use a personal current account for certain types of businesses virtually every bank in the UK terms and conditions state you can't.

As you are putting a lot of cash through the account your account will be closed due to the money laundering regulations as well as the fact that you are running a business though a personal current account.

I suggest you get two new accounts with another bank -
1. A business account for your sole trading activities only, and
2. Another as a personal current account used to pay your personal bills.