Lloyds closed my accounts hard getting new one

starM

Example of data held on National Hunter https://forums.moneysavingexpert.com/discussion/1612117

Ed-1

starM wrote: »

Example of data held on National Hunter https://forums.moneysavingexpert.com/discussion/1612117

They do send a better Subject Access Request than that now to be fair which was frankly indecipherable.

PaulW922

I am afraid that, after this news, Lloyds may not have acted quite as unreasonably as may have initially seemed the case, given that you did not notify them you had left the company. I think that you may need to take this to the FOS (as it is you as an individual being affected) on the basis that Lloyds have not reconsidered the case based on the new information you have provided - and they clearly haven't as they are just trotting out a standard line. That might be cheaper that a solicitor.

As an aside, often a signatory to an account, especially a director, is personally liable for a limited company debt to a bank in the event of insolvency. It is in the T&Cs, and can be a very big deal. Are you sure you are now ok on that front?

themadhouse

From what I understand Lloyds are not owed any money - it is PayPal which I have never had any involvement, it was set up by the new director.

jonesMUFCforever

If there is a debit paypal balance is the company liable?
Won't they debit money back to the Lloyds company account?

themadhouse

The PayPal debt is in the limited company name.

gunsandbanjos

PaulW922 wrote: »

I am afraid that, after this news, Lloyds may not have acted quite as unreasonably as may have initially seemed the case

This generally is the case once we discover what's actually gone on.

Caladan

This post wont help OP, but I feel it's important as (unless I missed it as I skim-read) people have suggested complaining/appealing but no one has explained that that course of action may be irrelevant.

Banks can choose who they do business with, and close an account without providing a reason, in the same way that consumers can choose who they bank with and close their own accounts without providing a reason.

If the bank considers you higher risk (for example if there is a suggestion of fraud) they may decline your business, even if you pass their normal criteria.

There are legal/regulatory exceptions, for example treating people unfairly (unfairly does not mean equally) or failing to make provisions for those with disabilities etc. But as a rule it's a commercial business and if an account is unacceptably high risk/not commercially sensible then notwithstanding the above, they can say no.

Because of this, appeals and complaints to the Ombudsman may well fail (not to say you shouldn't do it, just make sure you understand it wont necessarily give you the answer you want).

Assuming the information provided by OP in this thread is accurate though (specifically regarding the sale of his business) I would be very interested to hear the end result.

A former company owner should not be disadvantaged by the actions of the new owners, that completely defeats the object of a formally constituted company (rather than sole trader, partnership where the company itself is still the individual).

On the other hand, if the bank were to suspect that you still retained some form of control/interest over the company it would be quite right to hold you to account for the companies actions, even if you did not legally have control.

Interesting thread...

jonesMUFCforever

themadhouse wrote: »

The PayPal debt is in the limited company name.

.......we are going round in circles now - are you still on Lloyds bank's mandate as a signatory?
One word answer please - yes or no.

themadhouse

Yes - I did clarify this in a previous post