Lloyds closed my accounts hard getting new one

gunsandbanjos

Somerset_La_La_La wrote: »

The double interest was used as a reason to close for 'fraud'!? I guess it depends on the amount but still awful. Not like you could do it with 100k?!. Always happens on my account though - hardly the customer's fault!

I imagine it closed for cash cycling.

themadhouse

did your friend manage to open accounts elsewhere?

themadhouse

I have also read if a Cat 6 was applied my account would be closed immediately not with 60 days notice, is this correct?

chris_m

Ed-1 wrote: »

They didn't like the activity on the account (it was basically the same amount going in and out every day to bank interest twice on the same money - i.e. gaming).

That's rather different from receiving a payout from an employer, depositing cash from a car sale and receiving money from one's other half - all legitimate and fairly common transactions.

colsten

gunsandbanjos wrote: »

I imagine it closed for cash cycling.

Is that something prohibited by T&Cs or the law? If so, how is 'cash cycling' defined, and where?

chris_m wrote: »

That's rather different from receiving a payout from an employer, depositing cash from a car sale and receiving money from one's other half - all legitimate and fairly common transactions.

It is different alright, but either can get you into trouble. Depending on who the employer is, receiving money from them might be bad. Same with other half, and depositing large wads of cash can also raise suspicion, especially if you are already being watched.

masonic

Ed-1 wrote: »

They didn't like the activity on the account (it was basically the same amount going in and out every day to bank interest twice on the same money - i.e. gaming). It makes you wonder whether they know that that is possible in the banking industry - shocking really if they don't.

So, hang on a minute, you are saying it's possible to transfer money from Account A to Account B and earn interest that day on the same money from both accounts? This is news to me too, but not a loophole I'd feel brazen enough to exploit.

gunsandbanjos

colsten wrote: »

Is that something prohibited by T&Cs or the law? If so, how is 'cash cycling' defined, and where?

im sorry I've not read the T&Cs of Lloyds accounts.

This article gives an idea of why banks are wary of cash cycling http://www.credittoday.co.uk/blog/post/231/the-stealth-fraud

colsten

masonic wrote: »

So, hang on a minute, you are saying it's possible to transfer money from Account A to Account B and earn interest that day on the same money from both accounts? This is news to me too, but not a loophole I'd feel brazen enough to exploit.

It's been a hot topic on stoozing.com some years ago, and I think some people are still engaging in it. Although many have lost their accounts over the years. I don't think I have seen any T&Cs that explicitly forbid the practice, but it's not hard to imagine that banks don't find it particularly funny and just tell people that their accounts will be closed.

Different banks have different cut-off times so if you know what these are, you can get interest at both without having all the money in each of the accounts for more than a few minutes/hours. AKA as taking the proverbial.....

chris_m

masonic wrote: »

So, hang on a minute, you are saying it's possible to transfer money from Account A to Account B and earn interest that day on the same money from both accounts? This is news to me too, but not a loophole I'd feel brazen enough to exploit.

The only ways I can think of it working would be if using two banks who use different times for calculating the close-of-day balances - transferring the money from Bank A after their close-of-day time to Bank B before their (later) close-of-day time - or using banks in different timezones to get the same effect.

And, no, I haven't tried it, nor would I.

Different banks have different cut-off times so if you know what these are, you can get interest at both without having all the money in each of the accounts for more than a few minutes/hours. AKA as taking the proverbial.....

Aha, a good guess and beaten to it

colsten

gunsandbanjos wrote: »

im sorry I've not read the T&Cs of Lloyds accounts.

This article gives an idea of why banks are wary of cash cycling http://www.credittoday.co.uk/blog/post/231/the-stealth-fraud

Thanks for the link but I think this is talking about something very different from what I understand Ed-1's friend did.

I don't recall anything in the Lloyds or other T&Cs about it.