Current account closed in error

johnoz

I went to check my account balances online, but my current account was no longer shown. Suspecting an IT error, I called up the bank. After umming and ahhing they admitted they had accidentally closed my current account which has been open 35 years!

Me: just reopen it then.
Them: can't do that, we can open a new one, but it will have a different account number... and we can't do this until tomorrow.

Me: there was nearly £900 in the account, where is it?
Them: we've sent a cheque automatically, apparently.

Me: not good enough, I'm out of cash, how can I get some for use over the weekend?
Them: we've cancelled your existing cards, but we'll send you new ones and new PINs in the post.

Me: I have quite a lot of money in a savings account with you, how can I access it?
Them: ah, you can't as it's tied to your current account... which we closed ... but it'l be fine when we open a new one...

Me: I have 2 direct debits due tomorrow, what am I supposed to do about them?
Them: it would be best to call them in the morning and explain, and look at finding an alternate way to pay them.

Me: I'm expecting my monthly company pension payment to go in the day after next, what will happen.
Them: it should bounce back, and you should give them your new account details when it's been opened.

Me: can you transfer my existing direct debits, standing orders etc over to the new account then?
Them: ah, no, as the account is closed you'll need to do that yourself
Me: but if I was transferring a current account between banks, you do all that as a service!
Them: yes, but the transfer is done before the account is closed...
Me: okay so I have to do all that myself, so can you secure message me with the details of the payees etc and due dates?
Them: ah, no, not possible... but your statements will show this!
Me: I'm paperless, so all my statements are online, and not available now as the account has disappeared!
Them: ah, yes ... ... sorry about all this!

So, after a day off work, online and on the phone, I think I've sorted out 90% of what needs to be done, but no doubt I've missed something.

I suspect this will also affect my credit rating adversely, as a couple of direct debits have bounced and I will no longer be able to quote having a current account for many, many years.

So, my questions are:
- has anyone else had this happen?
- is there anything else I should have thought about?
- what level of compensation should I be looking at?

GingerBob_3

johnoz wrote: »

I went to check my account balances online, but my current account was no longer shown. Suspecting an IT error, I called up the bank. After umming and ahhing they admitted they had accidentally closed my current account which has been open 35 years!

Me: just reopen it then.
Them: can't do that, we can open a new one, but it will have a different account number... and we can't do this until tomorrow.

Me: there was nearly £900 in the account, where is it?
Them: we've sent a cheque automatically, apparently.

Me: not good enough, I'm out of cash, how can I get some for use over the weekend?
Them: we've cancelled your existing cards, but we'll send you new ones and new PINs in the post.

Me: I have quite a lot of money in a savings account with you, how can I access it?
Them: ah, you can't as it's tied to your current account... which we closed ... but it'l be fine when we open a new one...

Me: I have 2 direct debits due tomorrow, what am I supposed to do about them?
Them: it would be best to call them in the morning and explain, and look at finding an alternate way to pay them.

Me: I'm expecting my monthly company pension payment to go in the day after next, what will happen.
Them: it should bounce back, and you should give them your new account details when it's been opened.

Me: can you transfer my existing direct debits, standing orders etc over to the new account then?
Them: ah, no, as the account is closed you'll need to do that yourself
Me: but if I was transferring a current account between banks, you do all that as a service!
Them: yes, but the transfer is done before the account is closed...
Me: okay so I have to do all that myself, so can you secure message me with the details of the payees etc and due dates?
Them: ah, no, not possible... but your statements will show this!
Me: I'm paperless, so all my statements are online, and not available now as the account has disappeared!
Them: ah, yes ... ... sorry about all this!

So, after a day off work, online and on the phone, I think I've sorted out 90% of what needs to be done, but no doubt I've missed something.

I suspect this will also affect my credit rating adversely, as a couple of direct debits have bounced and I will no longer be able to quote having a current account for many, many years.

So, my questions are:
- has anyone else had this happen?
- is there anything else I should have thought about?
- what level of compensation should I be looking at?

Substantial. Several hundred at least. Go for all you can get and don't accept their first offer. When all is sorted out and you've got your compo, terminate your relationship with these jerks.

YorkshireBoy

johnoz wrote: »

I will no longer be able to quote having a current account for many, many years.

The question often asked is "how long have you been with your bank", not how long have you had a specific account. Even when the latter is expressly asked, I always interpret it as the former, as accounts come and go. I do, however, have a continuous relationship with them, going back a similar number of years to you.

The above is one reason why you shouldn't take the advice of the previous poster and "terminate your relationship with these jerks"!

Obviously the first thing to do is make a formal complaint, which I assume you've done? The FOS case fee, should it get to an adjudicator, is £550 I believe. So if you're happy with something a little under this then I think they'll settle.

Again, very obviously, you need to ensure the bank do all they can to minimise/eliminate the impact on your credit file. They should do this by writing to your DD originators, or giving you a letter to forward to them, clearly stating it was their error.

I'd suggest concentrating on damage limitation, rather than pound notes at this stage...because you won't know for some time the true extent of the damage (ie distress and inconvenience...see the FOS website), and you can't put a price on it until you do. After all, for each and every hour your spend on the matter you should be reimbursed £10 (accepted by the FOS I believe).

GingerFurball_2

Banks don't have to reimburse you a penny for time spent resolving the issue. This £10 an hour figure you've come up with is nonsense.

colsten

johnoz wrote: »

Me: not good enough, I'm out of cash, how can I get some for use over the weekend?
Them: we've cancelled your existing cards, but we'll send you new ones and new PINs in the post.

Really? They'll be sending new cards for a closed account?

Since you mention cards (plural), the account in question was a joint account, right? Is it possible that the other account holder - advertently or inadvertently - agreed to the closure of the account?

DUTR

johnoz wrote: »

I went to check my account balances online, but my current account was no longer shown. Suspecting an IT error, I called up the bank. After umming and ahhing they admitted they had accidentally closed my current account which has been open 35 years!

[snip]

So, my questions are:
- has anyone else had this happen?
- is there anything else I should have thought about?
- what level of compensation should I be looking at?

I'm surprised you never asked why the account was closed?
Accounts are often closed after a long period of inactivity, is there more to the episode than you have posted? As you say you were checking it online.

teddysmum

DUTR wrote: »

I'm surprised you never asked why the account was closed?
Accounts are often closed after a long period of inactivity, is there more to the episode than you have posted? As you say you were checking it online.

As there was money in the account, they would, surely ask you to confirm a closure request, just like they ask you to confirm payments and transfers?

GingerBob_3

YorkshireBoy wrote: »

The question often asked is "how long have you been with your bank", not how long have you had a specific account. Even when the latter is expressly asked, I always interpret it as the former, as accounts come and go. I do, however, have a continuous relationship with them, going back a similar number of years to you.

The above is one reason why you shouldn't take the advice of the previous poster and "terminate your relationship with these jerks"!

Obviously the first thing to do is make a formal complaint, which I assume you've done? The FOS case fee, should it get to an adjudicator, is £550 I believe. So if you're happy with something a little under this then I think they'll settle.

Again, very obviously, you need to ensure the bank do all they can to minimise/eliminate the impact on your credit file. They should do this by writing to your DD originators, or giving you a letter to forward to them, clearly stating it was their error.

I'd suggest concentrating on damage limitation, rather than pound notes at this stage...because you won't know for some time the true extent of the damage (ie distress and inconvenience...see the FOS website), and you can't put a price on it until you do. After all, for each and every hour your spend on the matter you should be reimbursed £10 (accepted by the FOS I believe).

I see what you're getting at, but just how much do you allow yourself to be effed about? There are limits, surely, and this extraordinary case is pretty close. At best, the OP should stop using the account.

johnoz

Thanks for info, guys.

1) yes, joint account, but no, my partner did not instigate closure either - they admit it was their mistake entirely

2) account is used all the time, several payments in each month, 2 standing orders to charities, half a dozen active DDs and cash taken out via ATM at least once a week

3) yes, unbelievable that they did not check before closing, and even worse that they did not contact me after the event - it was when I went online (something I do to check things nearly every day) that I found out

4) the new cards I mentioned are for a new account they are opening, but with no SO or DD info available, and a new account number, it's not that useful

Not only did they create this mess, they seem to have no mechanism to reverse it, and do not appear to be able to help in a timely manner to get things up and running again.

DUTR

teddysmum wrote: »

As there was money in the account, they would, surely ask you to confirm a closure request, just like they ask you to confirm payments and transfers?

As said there seems to be more to your episode than you have posted....
yes they do write to inform the account is going into hibernation if inactive, I had a penny in a deposit account for years, Lloyds wrote to me to advise that I need to take 2 forms of ID into a branch to get the money, or the account would be hibernated.

johnoz

DUTR wrote: »

As said there seems to be more to your episode than you have posted....
yes they do write to inform the account is going into hibernation if inactive, I had a penny in a deposit account for years, Lloyds wrote to me to advise that I need to take 2 forms of ID into a branch to get the money, or the account would be hibernated.

No, I've not withheld info! This was a very active account. It was closed, they tell me, entirely by accident and they admit they are at fault. There was no notification to me either before or afterwards. There was nearly £900 in the account. I find it amazing that they have no checks in place to ensure they are not making such mistakes and they won't give me details of how this happened or who did it.

Between us, my wife and I have over £120k of ISAs still with them, but I now have so little confidence in their procedures that we will look at transferring these to another provider ... but I want to get the current account sorted first.