Lloyds closed my account now holding funds

FreddyMac

Lloyds closed my account within 3 days of opening it. The reasons of which that were given to me at least were around credit scoring. I opened the account in Branch and was given sort code and account number on the spot...

I stupidly also thought it would be a good idea to pay in a reclaim cheque from HMRC of a significant amount on the same day the account was opened.

I call telephone banking to try and see what is going on and how i can get my money back as they confirm cheque cleared but account is closed. I go into branch where i was told i need to request funds to be transferred to the branch and it would take maximum 3 working days for the funds to arrive.

It's now been a week and all i get from the Lloyds Branch is "we are waiting for funds to arrive in our back account, nothing we can do sorry you just have to wait, the department holding your funds can't be called, they only respond to internal messaging"

No time scale has now been given... What are my legal rights? I have spoken with Ombudsman who has logged my complaint but as we know this is a max 8 week process.

This is surely not right and I am desperate for any advice as they are holding onto funds they have no right to... Any help would be much appreciated

Wheres_My_Cashback

Freddy Mac from...............Freddy and the 'Dreamers'

Lokolo

How long has it been since you cashed the cheque?

http://ask.barclays.co.uk/help/day2day_banking/chequeclearing

Although not Barclays, the same rules apply to the majority of banks of 2-4-6 clearing.

The cheque would need to completely clear before the money can be given to you.

FreddyMac

Cheque was paid in exactly 2 weeks ago... I can confirm from Lloyds themselves who stated it had already cleared when i realised the account had been closed....

Midslad27

I understand they have to do checks etc but its terrible how they treat ppl regarding sudden drastic closure. Not even s phone call. Ive been in your suitation its horrible trying to get your money out

FreddyMac

Midslad27 wrote: »

I understand they have to do checks etc but its terrible how they treat ppl regarding sudden drastic closure. Not even s phone call. Ive been in your situation its horrible trying to get your money out

I found out by trying to access internet banking which said I had no account... then telephone banking who said i wasn't even a customer... 3 hours worth of phone calls and 7 trips to the Branch later I am back at square one...

I just wanted to know if there had been a breach in their legal requirements as to how they have handled this situation?

Their advice is to wait indefinitely for a response from them... While presumably my funds earn them some kind of interest sitting in a back account....

grumbler

FreddyMac wrote: »

I just wanted to know if there had been a breach in their legal requirements as to how they have handled this situation?

Their advice is to wait indefinitely for a response from them... While presumably my funds earn them some kind of interest sitting in a back account....

Don't let the arrogant bank get away with this. Vote with your feet, but by all means complain, demand compensation and take the matters to FOS if necessary.
Personal Banking Terms and Conditions

17.3
We may end this agreement (or any account or service under it):
a. by writing to you and giving you two months’ notice; or
b. immediately if:
i. you are, or we reasonably consider you may be:

1. using or obtaining, or allowing someone else to use or obtain, a service or money illegally;
2. acting fraudulently;
3. behaving improperly (for example, in a threatening or abusive manner); or

ii. we reasonably consider that by continuing the agreement:

1. we may break a legal requirement or a court order or other authority;
2. we (or another company in the Lloyds Banking Group) may be exposed to action from any government or regulator; or

iii. you have seriously or persistently broken this agreement in any other way.

"Credit scoring" obviously has nothing to do with the reasons listed in (b)
If the account was opened and none of (b) was applicable, they should have given you 2-months' notice.
Also:

17.6
If we end this agreement or stop providing an account or service, we... will try to reduce the inconvenience to you.

Obviously they failed even to try.
A similar recent thread with another link inside: Barclays account closure after 2 days.

FreddyMac

grumbler wrote: »

Don't let the arrogant bank get away with this. Vote with your feet, but by all means complain, demand compensation and take the matters to FOS if necessary.
Personal Banking Terms and Conditions
"Credit scoring" obviously has nothing to do with the reasons listed in (b)
If the account was opened and none of (b) was applicable, they should have given you 2-months' notice.
Also:
Obviously they failed even to try.
A similar recent thread with another link inside: Barclays account closure after 2 days.

I quoted everything you stated above to the branch manager. Who in turn lead me to...

17.4 We may close or suspend an account or stop
providing a service:
a. if you are not eligible (or no longer eligible) for
that account or service;

So after they did an overnight check i have now been told I was actually not eligible for an over draft facility that i SPECIFICALLY stated i DID NOT WANT!

grumbler

FreddyMac wrote: »

I quoted everything you stated above to the branch manager. Who in turn lead me to...

IMO, as this paragraph doesn't say 'immediately', it doesn't override 17.3 and has to comply with it.
That said, branch managers are powerless and can't decide or change anything anyway.

So after they did an overnight check i have now been told I was actually not eligible for an over draft facility that i SPECIFICALLY stated i DID NOT WANT!

So, what exactly are you not eligible for - account or overdraft?

Midslad27

Shocking and gobsmacking they treat people like this.. Good luck with your complaint s mentioned they've broken their own tcs regarding the hassle

FreddyMac

grumbler wrote: »

So, what exactly are you not eligible for - account or overdraft?

I was not eligible for the over draft, the account was fine which is why it opened immediately with no hassle and i was given account details on the spot, I was given NO documentation about an over draft facility... the contract i signed mentions nothing of an agreed overdraft at all!

I specifically told the customer service rep in branch i had no interest in an overdraft but they included one anyway?

What on earth has happened? And what do you think my next steps will be? I've logged all this with the FOS.