Bank closing my account with no explanation

starM

Ed-1 wrote: »

TSB can't be affected by Lloyds as it's outside Lloyds Banking Group (Lloyds, Halifax, BOS). TSB have been brilliant in my experience. I like Lloyds' systems (so TSB is the best of both worlds as they use the same systems) but their customer service is appalling and when they make decisions they refuse to liaise with their customers and take a 'we've made our decision' approach whereas other banks and building societies may discuss any problems first before making rash decisions such as closing accounts. LBG have a terrible approach to customer service in decisions made by their back office staff.

So if TSB is outside Lloyds Banking Group - applying for new account with TSB will they look at Lloyds / Halifax account?

Just for my brother Llloyds will never open up an account for him - He applied previously for Halifax which was accepted immediately and then received a letter saying account will be closed.

Ed-1

starM wrote: »

So if TSB is outside Lloyds Banking Group - applying for new account with TSB will they look at Lloyds / Halifax account?

TSB is totally independent of Lloyds Banking Group - even though they are using LBG's IT systems there are curtains blocking any sharing/viewing of customer information between LBG on one side and TSB on the other. So TSB can only see broadbrush details of accounts held with LBG through the external credit reference agencies, as any other bank can.

starM wrote: »

Just for my brother Lloyds will never open up an account for him - He applied previously for Halifax which was accepted immediately and then received a letter saying account will be closed.

What is the background of why Lloyds will never open up an account for him? Do you know what the letter from Halifax said - was it a 'you failed our final checks' type of letter or a 'your account will be closed in 60 days' type of letter?

xylophone

I have several accounts incl cr cards, isas,

For the ISAs at least, would they not be obliged to allow you to arrange a transfer to another provider as closing the accounts would lead to loss of ISA status?

starM

Ed-1, At least 10 years ago my brother had a Lloyds account - he lost his job and went into difficulties. He had problems with his Lloyds account bounced DDs etc. Lloyds decided to closed his account.

The letter just said 60 days notice to close the account and if I remember correctly it was from credit decisioning.

Ed-1

starM wrote: »

Ed-1, At least 10 years ago my brother had a Lloyds account - he lost his job and went into difficulties. He had problems with his Lloyds account bounced DDs etc. Lloyds decided to closed his account.

The letter just said 60 days notice to close the account and if I remember correctly it was from credit decisioning.

Had he only recently applied for the Halifax account when they gave 60 days notice to close that one?

It would be interesting to know whether Lloyds put a customer indicator on his profile which would alert them to any history such as any collections activity to recover any debt that may influence their decision when considering new applications.

starM

The account was opened for less than 2 weeks. He had an Hfx and BOS Easycash account aswel which was opened long before the merger. Hfx Easycash was closed aswel but BOS remained open.

System

Banks usually allow 60 days to transfer funds out etc

xylophone wrote: »

For the ISAs at least, would they not be obliged to allow you to arrange a transfer to another provider as closing the accounts would lead to loss of ISA status?

PaulW922

The bank can do this and really, there is little you can do about it - other than change to another bank. The point about iSAs is a valid one and worth raising with the Halifax.

Before applying for another account I would check your credit file (Halifax mainly use Experian) to ensure that there is nothing there that will affect moving to another bank.

My guess is that this probably relates to concerns over the source (and possible use) of funds paid in and if the bank does have suspicions they will not tell you what they are. No amount of pestering, DPA requests etc will change that I'm afraid. Don't waste effort in trying to get them to change their mind.

[Deleted User]

There seem to be quite a few people getting kneecapped by Halifax/LBG at the moment. Worrying in some respects.

colsten

billbennett wrote: »

There seem to be quite a few people getting kneecapped by Halifax/LBG at the moment. Worrying in some respects.

It's probably just that a few more of the kneecapped are posting on MSE now. This doesn't necessarily equate to more people getting kneecapped.

One way of avoiding the kneecapping is to comply 100% with the rules of the accounts, and keeping a keen eye on transactions going through the accounts. Nothing not authorised by you should go through the account.