My Dads Halifax and Bank of Scotland accounts closed for the free £5 ?

anna42hmr

Yorkshire_Pud wrote: »

What is the evidence for the account closures so far?

One person or rather his Dad so its a third hand report and we don't really know the circumstances!

On that basis many here are changing their banking regime to fit in with the supposed LBG crackdown reported by one person, or rather his Dad, in the whole UK!

Get a grip.

Good point, many of us on here have been doing this for years and so far have been fine. for example my 3x halifax rewards have been opened for at least 5 years etc. Had the lloyds vantages for who knows how long until they cut the interest rate etc surely if they want to close the "loop holes" they could do it a lot easier.

For example limiting the bos vantages to 1 per person and insist on a number of direct debits. they could change the terms to existing holders to to advise that the vantage part will only be payable on one account from now on. Or even cut down the rate (like lloyds did with their vantage and tsb did with enhance etc).

They could also restrict the reward accounts as well by not only limiting new applicants to one, but customers such as myself who had the three before the change in terms etc, they could choose to enforce the existing rules if they wanted to. For instance they would be within the FCA/PRA guidelines to send me a letter to notify a change of terms on my reward account to say that only one would be eligible from now on.

So to me, it suggests that there may be other reasons behind the closures as their are other ways that they could stop the "abuse" of interest/reward tarting etc which would be 1. easier to do and 2. not risk alienating their existing loyal customers who if they hold a current account with them may be more likely to apply for other (more income productive) products such as credit cards, loans, mortgages etc.

joe134

anna42hmr wrote: »

Good point, many of us on here have been doing this for years and so far have been fine. for example my 3x halifax rewards have been opened for at least 5 years etc. Had the lloyds vantages for who knows how long until they cut the interest rate etc surely if they want to close the "loop holes" they could do it a lot easier.

For example limiting the bos vantages to 1 per person and insist on a number of direct debits. they could change the terms to existing holders to to advise that the vantage part will only be payable on one account from now on. Or even cut down the rate (like lloyds did with their vantage and tsb did with enhance etc).

They could also restrict the reward accounts as well by not only limiting new applicants to one, but customers such as myself who had the three before the change in terms etc, they could choose to enforce the existing rules if they wanted to. For instance they would be within the FCA/PRA guidelines to send me a letter to notify a change of terms on my reward account to say that only one would be eligible from now on.

So to me, it suggests that there may be other reasons behind the closures as their are other ways that they could stop the "abuse" of interest/reward tarting etc which would be 1. easier to do and 2. not risk alienating their existing loyal customers who if they hold a current account with them may be more likely to apply for other (more income productive) products such as credit cards, loans, mortgages etc.

I agree, BUT, we are dealing with BANKS, these are not normal institutions. It's all about power.How long before WE have to pay for ALL a/cs, now they have to hold vast sums of cash.?
Not long I presume.They do elsewhere.

anna42hmr

joe134 wrote: »

I agree, BUT, we are dealing with BANKS, these are not normal institutions. It's all about power.How long before WE have to pay for ALL a/cs, now they have to hold vast sums of cash.?
Not long I presume.They do elsewhere.

Yes but what better way for them to hold the sums of cash if not to have a loyal customer base leaving money sitting in current accounts with decent balances rather than alienate them for no reason. Especially as the interest rates of standard savings accounts do not encourage people to keep money in them.

Plus the end of free banking here has been touted for many many years but has yet to come to fruition. Plus it would need all banks to be on the same wavelength to fully work as all it would mean is that if X bank had no free accounts at all, they would move to Y bank instead. Just because it is in place in other countries doesn't mean it will be bought here. if you google end of free banking you will see this talk of end of free banking seems to have been touted around every year or so, for example this article from 2008
http://www.thisismoney.co.uk/money/saving/article-1607346/Analysis-Bank-charges-and-free-banking.html

Carnival789

Yorkshire_Pud wrote: »

What is the evidence for the account closures so far?

One person or rather his Dad so its a third hand report and we don't really know the circumstances!

On that basis many here are changing their banking regime to fit in with the supposed LBG crackdown reported by one person, or rather his Dad, in the whole UK!

Get a grip.

I think people are entitled to make there own interpretations and take whatever action they see fit without being told to "get a grip". Its their money at the end of the day, not yours.

Even the person that thanked your comment has weighed in with their own speculative comment about the issue being fraud related. Given that we can never fully know the reasons behind these letters/closures we are all entitled to draw our own conclusions and opinions without pointless comments like that.

joe134

anna42hmr wrote: »

Yes but what better way for them to hold the sums of cash if not to have a loyal customer base leaving money sitting in current accounts with decent balances rather than alienate them for no reason. Especially as the interest rates of standard savings accounts do not encourage people to keep money in them.

Plus the end of free banking here has been touted for many many years but has yet to come to fruition. Plus it would need all banks to be on the same wavelength to fully work as all it would mean is that if X bank had no free accounts at all, they would move to Y bank instead. Just because it is in place in other countries doesn't mean it will be bought here. if you google end of free banking you will see this talk of end of free banking seems to have been touted around every year or so, for example this article from 2008
http://www.thisismoney.co.uk/money/saving/article-1607346/Analysis-Bank-charges-and-free-banking.html

Maybe so, but, we have never had a banking crisis such as the last one since 1920's. They are a law unto themselves, caused by themselves.You can see how conspiracy theories grow, just take this thread.:eek:
Err on the side of caution with banks, they don't care who they cripple.They are not in it for popularity, just MONEY;;;bit like us really.:rotfl:

Steve_xx

Yorkshire_Pud wrote: »

This is the most level headed and realistic post on this thread so far!

So I don't need to say more, except....Get a grip everyone (at your discretion of course:)).

It's also the post that gives the banks plenty of advice and ideas on how to ruin what many have come to enjoy.

MABLE

You never know the Lloyds Bank rep on this site may put his tuppence worth in as well.

Steve_xx

MABLE wrote: »

You never know the Lloyds Bank rep on this site may put his tuppence worth in as well.

Yes, and tuppence will be about all it gets to be worth if people here go on giving the banks ideas on how to separate us further from our money.

The phrase " a still tongue in a wise head" comes to mind.

joe134

MABLE wrote: »

You never know the Lloyds Bank rep on this site may put his tuppence worth in as well.

I doubt it. he/she will just monitor it, and inform Hq .they won't get drawn into an explanation of any letters, or, advice on what to do.

joe134

Steve_xx wrote: »

Yes, and tuppence will be about all it gets to be worth if people here go on giving the banks ideas on how to separate us further from our money.

The phrase " a still tongue in a wise head" comes to mind.

ignorance is not bliss, tis folly to be wise;.not in this case.