Bank closing my account with no explanation

System

Possibly but more and more seem to be on the standard 60 days notice rather than closed immediately - this would indicate commercial rather than regulatory reasons (such as AML) for closure.

I wouldn't personally be that fussed but some people - especially those with a deep relationship with a particular bank - get offended by persona non grata status.

colsten wrote: »

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.

fifeken

colsten wrote: »

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.

I'm not over here as often as some so may have missed some posts, but that's not how I see it.

It appears to me that they're getting rid of the "users" who are losing them money.

MABLE

fifeken wrote: »

I'm not over here as often as some so may have missed some posts, but that's not how I see it.

It appears to me that they're getting rid of the "users" who are losing them money.

I think you are stating the obvious.

fifeken

MABLE wrote: »

I think you are stating the obvious.

But it contradicted the post (from a respected poster) I quoted, hence the reason for my post. Hopefully it stimulates some debate, if you're interested.

HHarry

Well I'm seriously considering closing my 3x BOS Vantage and my Halifax Reward accounts.

My main banking is done with Lloyds, and whilst I appreciate that account switching isn't difficult these days, I'm very happy with the service provided and don't want to move somewhere else.

The chances of being picked up still seem to be very small, but I'm not sure it's a risk I want to take.

uknick

It would be useful if some of the OPs who had their accounts closed would come back and say exactly why they were closed, i.e. was it do with account abuse by moving the same funds about or, was it due to a separate completely unrelated matter.

Until then, we're just guessing.

Ed-1

uknick wrote: »

It would be useful if some of the OPs who had their accounts closed would come back and say exactly why they were closed, i.e. was it do with account abuse by moving the same funds about or, was it due to a separate completely unrelated matter.

Until then, we're just guessing.

Invariably they don't give a reason why they are closing the accounts. They just send you a standard letter saying they are and don't really care about either the consequences of their decision or that you are none the wiser why. In the case of me there was the standard monthly money go-round to cycle transfers to meet the paying in/direct debit criteria and I got the axe from LBG. It's useless ringing them up - they just say 'we've made our decision', 'we don't have to give a reason' or 'you no longer meet our criteria for an account' and 'the 2 month notice period is set out in our terms and conditions which you agreed to'. They're a profit-making company in every sense and customer service with LBG is shocking. I was a Halifax customer before the HBOS merger with Lloyds and I have no doubt that had that merger not happened, I'd still have my Halifax accounts. It's not good that more and more banks are merging to form bigger groups as there's less choice and more risk that the whole group will kick you out.

karlie88

Ed-1 wrote: »

Invariably they don't give a reason why they are closing the accounts. They just send you a standard letter saying they are and don't really care about either the consequences of their decision or that you are none the wiser why. In the case of me there was the standard monthly money go-round to cycle transfers to meet the paying in/direct debit criteria and I got the axe from LBG. It's useless ringing them up - they just say 'we've made our decision', 'we don't have to give a reason' or 'you no longer meet our criteria for an account' and 'the 2 month notice period is set out in our terms and conditions which you agreed to'. They're a profit-making company in every sense and customer service with LBG is shocking. I was a Halifax customer before the HBOS merger with Lloyds and I have no doubt that had that merger not happened, I'd still have my Halifax accounts. It's not good that more and more banks are merging to form bigger groups as there's less choice and more risk that the whole group will kick you out.

Could I ask Ed-1...did you make any debit card transactions on the LBG accounts?

I guess we'll never know, but even the odd 15p transaction at Tesco every 6 months or so could have stopped your accounts from being closed.

Ed-1

karlie88 wrote: »

Could I ask Ed-1...did you make any debit card transactions on the LBG accounts?

I guess we'll never know, but even the odd 15p transaction at Tesco every 6 months or so could have stopped your accounts from being closed.

The only debit card transaction in the last year on my Lloyds account was a £2 one to request my Experian credit report which funnily enough on getting it I saw Lloyds and Halifax had made unrecorded enquiries into it shortly before and shortly after I received the dreaded 2 month notice of closure letters. The unrecorded enquiries led me to believe it was the fact I had multiple (circa 25) current account searches in the month before the enquiries from LBG (from a donor account and switching to Yorkshire Bank spree for the recent £150 offer) that resulted in LBG closing my accounts.

Yorkshire_Pud

I get quite perturbed by these LBG account closures although I don't think more than four have been reported on this forum.

Do banks really care if you spend 50p every two months using your debit card? Does that prove you are using an account the way they want?

Does BOS really think an individual needs three current accounts each of which happen to pay 3% interest up to £5000?

More likely scenario is that a computer programme picks up activity that COULD be related to money laundering and/or fraud and then a human who probably doesn't know the reason the computer flags up particular customers justifies their employment by giving said account holder the chop. Better safe than sorry. They don't give a reason because the don't know either!?

My Santander account was blocked by their fraud dept but they didnt know why! I said is it because I made a £1 payment to a new account, then a £10 payment and then a £1500 payment, all within a two hour timeframe. It was after the £1500 payment my accounts were blocked. They said 'maybe because that's what fraudsters do, make a test payment, then if it works make higher value payments'. Of course I as an innocent account holder just wanted to make sure my £1 got to the intended account before making a larger payment!

Computers can construe activity in certain ways and I believe its the number and frequency of transactions beyond the norm (hello stoozers!) that sets off these alarm bells and tips you into the abyss no questions asked?!;)