Halifax and BOS closing my accounts

etienneg

I'm not at all sure I understand this suggestion that banks close accounts because they deem them unprofitable. If current accounts don't contribute to the banks making a profit, why do they offer them? Why are they so keen to get new current account customers that they offer £100+ switching bonuses and other incentives?


If it were true, I would expect to hear about many, many more people losing their bank accounts! We only hear about isolated instances on the forum. Posters rarely include all information in their posts (whether deliberately or not), and we have no idea what else might have occurred to cause the bank concern. I suggest these unknowns are more likely to be the reason.

YorkshireBoy

etienneg wrote: »

I'm not at all sure I understand this suggestion that banks close accounts because they deem them unprofitable. If current accounts don't contribute to the banks making a profit, why do they offer them? Why are they so keen to get new current account customers that they offer £100+ switching bonuses and other incentives?


If it were true, I would expect to hear about many, many more people losing their bank accounts! We only hear about isolated instances on the forum. Posters rarely include all information in their posts (whether deliberately or not), and we have no idea what else might have occurred to cause the bank concern. I suggest these unknowns are more likely to be the reason.

There's complying with the T&Cs.

Then there's complying with the 'spirit' of the T&Cs.

And then there's taking the mick!

Most normal customers fall into the first category. Many MSEers will fall into the second category. I, and a few more MSEers, I'd wager, occasionally transgress/have occasionally transgressed into the third category!

Many/most of the threads I've seen posted on here about account closures, and one in particular, have shown the account holder to have fallen into the third category.

Thrugelmir

etienneg wrote: »

I'm not at all sure I understand this suggestion that banks close accounts because they deem them unprofitable. If current accounts don't contribute to the banks making a profit, why do they offer them?

Like the world we live in. Things constantly change. Banks are finding it harder to make money in a low interest and tougher regulatory environment. Where compliance costs have increased considerably. Banks still want to attract potentially profitable customers though no doubt wish to now offload those that simply play a game. Nor do the banks need to attract deposits on the same scale as they once did not so long ago.

GingerFurball_2

etienneg wrote: »

I'm not at all sure I understand this suggestion that banks close accounts because they deem them unprofitable. If current accounts don't contribute to the banks making a profit, why do they offer them? Why are they so keen to get new current account customers that they offer £100+ switching bonuses and other incentives?


If it were true, I would expect to hear about many, many more people losing their bank accounts! We only hear about isolated instances on the forum. Posters rarely include all information in their posts (whether deliberately or not), and we have no idea what else might have occurred to cause the bank concern. I suggest these unknowns are more likely to be the reason.

Because banks know that customers are likely to go to their "main" bank for any lending that they want to do. So a £100 bribe to switch to their current account now might pay dividends in the future when the same customer comes to them because he wants to borrow £15k to buy a car.

tg99

Update: went into branch (Lloyds) a couple of days ago. Staff had no idea so they had to contact the relevant department hence am awaiting a call from them to provide further information.

KJSmith

Sent or received any funds from abroad recently? Or have you attempted to send or has anyone attempted to send you any funds from abroad?

tg99

KJSmith wrote: »

Sent or received any funds from abroad recently? Or have you attempted to send or has anyone attempted to send you any funds from abroad?

No. All payments in and out have been from / to other bank accounts or savings accounts in my name.

ceredigion

tg99 wrote: »

No. All payments in and out have been from / to other bank accounts or savings accounts in my name.

In just prier to 10pm and out around 8pm

tg99

ceredigion wrote: »

In just prier to 10pm and out around 8pm

No just monthly SO set up for minimum funding requirements, DD and manual interest withdrawals.

etienneg

Please explain to us why you do regular transfers at those particular times.