Bank account frozen - what to do?

robskii

I have a friend who has recently moved to the UK from overseas to do a postgraduate degree at a very well known university. She set up an account at a high street bank and deposited around £2000 that she bought with her. No problems so far everything fine, she used the account as normal for a few weeks.

She has a scholarship which is paid quarterly. The first installment was paid by an official, university branded, cheque. She paid this into her account and that's where the problems started.

Without notice or contacting her, the bank froze her account, so she cannot deposit or withdraw funds. She found out when her card was rejected at a shop. She asked the bank and they have said they can't discuss the matter with her.

Having searched online, I realise this behaviour from the bank almost certainly means that they are carrying out a money laundering investigation (i.e. that is one of the only legal bases for freezing an account with no notice and refusing to discuss the matter)

I have also read horror stories of banks closing accounts with no chance to answer allegations - the customer is then prevented from opening another account any bank. This would obviously be a massive problem for her and maybe put her stay in the UK in jeopardy.

Now it would be trivial to prove that the funds are legitimate and from the university. She has an offer letter stating the amount of the scholarship, and a certificate of enrollment on official paper. It would be easy to get further letters attesting to her scholarship - I'm sure if pushed the university could confirm the cheque number it issued her.

Should she send these unsolicited to the bank? Would they even read them? Or would this make things worse? Has anyone had experience with this?

Any help appreciated on what is a worrying situation.

grumbler

Unfortunately, she can't do much. The stupid law seems to give a carte blanche to bank's Pinkertons that seem to enjoy this.

Sending the proofs will do no harm, but most likely won't help because of the (typically) poor communication between the frontline CS and the secretive Pinkertons.

xylophone

Has she approached the Bursar at the University? Is there any assistance for students at the University?

robskii

xylophone wrote: »

Has she approached the Bursar at the University? Is there any assistance for students at the University?

She is fine short term for funds (family are assisting) and as you say the University will probably be able to provide a hardship loan if necessary. It's resolving the issue with the bank that is the problem.

Archi_Bald

Has she raised a formal complaint with the bank, in writing?

Has she looked at her statement - perhaps there were some other transactions that raised the bank's suspicion, such as payment from abroad? Which bank is it?