RBS cubsidiary closed friend's account with no notice.

pastysupper

Hi. My friend has today been informed that both her current and savings accounts have been closed, with no notice or warning. She banks with an RBS subsidiary, and despite many calls to numerous departments nobody will provide her with any information whatsoever. All they have told her is a letter is in the post (or will be sent out, depending on who she spoke to).

I have done a little bit of amateur research, and it appears the only reason banks usually do this with no notice is 1. threatening behaviour towards staff or 2. suspected fraud.

She certainly has not been threatening to anyone, and has absolutely not committed fraud. The only possible reason is that she has received some payments from her friend in Indonesia (surely not considered a risky country?)

Can anyone please advise on what her rights are? Is she entitled to an explanation? How can she get her money back, or do the bank have any right to hold on to it? (These are her only accounts and she has no other source of funds!) Will this affect her credit rating or ability to open a bank account elsewhere?

I'd be really grateful for your advice!

pmduk

If they suspect a problem they can indeed close accounts without notice, usually her funds can be reclaimed by producing photo ID at the subsidiary concerned.

Depending on the problem she may well have problems opening accounts elsewhere. I suggest you google CIFAS and National Hunter.

Thrugelmir

pastysupper wrote: »

The only possible reason is that she has received some payments from her friend in Indonesia (surely not considered a risky country?)

Who knows what the actual source of the funds were. Compliance with money laundering regulations is very expensive. Banks simply don't want the hassle.

pastysupper

I think her prime concern is just getting the money back. When she called, none of the bank staff could even see any details of her acount on the system, so would they still be able to give her funds back if she showed up at a branch with passport, driving licence, proof of address etc?

Thrugelmir

The letter sent will explain all. Has the account been frozen pending investigation. Are the amounts involved sizable?

A bigger problem may be obtaining a new bank account.

pastysupper

They are reasonably sizeable, but then again sizeable to one person may be another's pocket money!

Yes, I have been looking up CIFAS following pmduk's response. Quite worrying, because even if she does get a cheque for her funds where does she lodge it?!

antrobus

pastysupper wrote: »

..She certainly has not been threatening to anyone, and has absolutely not committed fraud. The only possible reason is that she has received some payments from her friend in Indonesia (surely not considered a risky country?)...

That might do it.

Indonesia is also considered one of the world's largest suppliers of Islamic State (IS) fighters, with more than 500 Indonesians having joined the war in Syria and Iraq, based on data from the National Counter-Terrorism Agency (BNPT)

http://www.indonesia-investments.com/business/risks/radical-islam/item245

Thrugelmir

pastysupper wrote: »

They are reasonably sizeable, but then again sizeable to one person may be another's pocket money!

Money laundering takes all forms. Many people do small but regular as they hope it will go unnoticed.

GingerBob_3

Money Laundering Paranoia knows no bounds. These banks and other financial institutions want sorting out, big time. They suspect money laundering for the flimsiest of reasons, then not satisfied with closing down their relationship with the customer, they then blacklist them on CIFAS.


OP, your friend needs to contact her MP. Sooner or later something has to be done about this issue. The banks are rapidly descending to the level of utility companies - making people's lives up and down the land an absolute misery.

pastysupper

Whilst noone at the bank has mentioned the word fraud or CIFAS, going by what I have read on here, I think it is safe to say that's the route this is going down. So how does she actually get her money back? Can she just call into a branch with ID and get it in any form? Obviously if it is a cheque she has nowhere to lodge it! Worst case scenario, is there any instance whereby the bank can refuse or delay giving it back?

This is my first time on this forum and I know I am asking a lot of questions, but you have all been very helpful, so thank you!

Ballard

GingerBob wrote: »

Money Laundering Paranoia knows no bounds. These banks and other financial institutions want sorting out, big time. They suspect money laundering for the flimsiest of reasons, then not satisfied with closing down their relationship with the customer, they then blacklist them on CIFAS.


OP, your friend needs to contact her MP. Sooner or later something has to be done about this issue. The banks are rapidly descending to the level of utility companies - making people's lives up and down the land an absolute misery.

I think that you may have mentioned this once or twice before. No UK government is going to relax money laundering laws any time soon.