Need advice , llyods have closed my account

Ed-1

Johnsear wrote: »

Surely though if there was a fraud marker against my name wouldn't Hsbc and Santander close my account too?

Not necessarily. It depends on what fraud marker it was and whether they see it or not. You say CIFAS is clear (did you do a subject access request to them?) and that is a database of supposedly confirmed fraud. A first party fraud marker on there would lead to instant account closure with any bank who saw it (they may not automatically see it depending on whether they have a feed from the database but they certainly would if you made an application to them etc.). An application fraud marker on there may not lead to account closure as it's not as serious, e.g. it could just be you forgot to state a previous address on an application. It's judged against the various banks' differing criteria on a case by case basis on risk.

The databases that Synectics Solutions (National SIRA) and National Hunter run are mainly databases that screen application data against previous applications made by you to other financial institutions that use that database and the loading member institution can slap a status such as 'refer' or 'inconsistent' against the application to warn other members to take a closer look into a future application that matches those details. It can also identify confirmed fraud (e.g. an 'applicant refer' status on National Hunter may be placed against a fraudulent application).

I very much doubt you have a fraud marker that would lead to existing accounts being closed but too many inconsistency statuses on National Hunter/refer statuses on Synectics for example could lead to banks declining an application. Or it may just be your credit score - but banks usually mention credit reference agencies if that is the reason for the decline.

Johnsear

Thank you for your reply,
Yes checked CIFAS SAR,
Will have to send out the SAR for national
Hunter and SIRA, just to double check,
But can account misuse lead to issues with fraud?

Ed-1

Johnsear wrote: »

Thank you for your reply,
Yes checked CIFAS SAR,
Will have to send out the SAR for national
Hunter and SIRA, just to double check,
But can account misuse lead to issues with fraud?

Not really. "Abusing" bank accounts in the sense of getting all the offers etc. is not fraudulent. However the bank may not like the way you are using it (e.g. lots of gambling transactions or bitcoin transactions is another common one) in which case they may send out a letter saying they can no longer maintain a banking relationship, or feel that at this moment in time you pose too much of a risk (e.g. AML regulations). These are perfectly common reasons to give 60 days notice of account closure and are nothing to worry about. Problems come if the bank add a fraud marker of some sort with a fraud prevention agency. They can't (or shouldn't) do this for account abuse in the above sense.

From my experience and that of various threads on here, Lloyds sends the "unable to maintain a banking relationship" letter when it no longer wants you as a customer for whatever reason and doesn't apply blocks to accounts or anything. If you fail a risk assessment you get sent a different letter and account blocks are applied but can still bank with them in future (subject to application approval).

Johnsear

Thanks Ed, will keep you posted, I've written a letter to cooperate bank anyway to see exactly why , and will get a sar from NH and SIRA

Johnsear

So, just an update, got my coop account opened, error with a previous address caused the issue with coop.
I am just being super paranoid due to apply for a mortgage soon,
I know my Cifas is clear, surely having a new current account proves there's no markers on NH and SIRA right ?

colsten

Johnsear wrote: »

I know my Cifas is clear, surely having a new current account proves there's no markers on NH and SIRA right ?

That would be a fair assumption to make. Although sometimes banks open accounts and then a week or two later, they suddenly close it again.

Johnsear

Thank you for a quick reply, I've had it open since October and no issues, I actually didn't commit any fraud just got the dreaded unable to maintain banking relationship letter, glad it's all over , good riddance to Lloyds banking group,