Should a bank be able to close an account based on spending habits?

GingerBob_3

JuicyJesus wrote: »

You think wrong. No business has to provide you with any service it doesn't want to for any reason, barring things like race or sex discrimination.

It's also not in breach of the T&Cs because the T&Cs say that the bank can close the account for any reason given proper notice (or no notice at all in certain limited circumstances).

Some businesses do. See my earlier post.

mrmajika

The question you pose in the poll differs from that you ask in the post title. The answer to the former is no and yes to the latter.

colsten

tacpot12 wrote: »

NatWest didn't explain what that you couldn't use the account as you have been using it, and you have been doing nothing illegal.

How do you know?

Ben8282

Why are you keeping £50,000 in this Natwest account which you say you are using 'to save' when Natwest no longer pay interest on current accounts.
You claim to earn a six figure salary and yet you have a 'wages' account with HSBC. Do you know the difference between a salary and a wage?
Despite being busy earning your 6 figure salary/wage you have time to play on online casinos.
I find it unlikely that they have decided to close this account because of your 'spending and risk'. What risk? The account is substantially in credit. There is therefore no risk. I can well imagine though that they might not be too happy about their debit card being used for large gambling transactions, although I believe the most probable reason for closing the account is that for some reason they are not satisfied as to the origins of this money.

OceanSound

Banks have to abide by laws, rules, regulations, codes, best practice etc etc. But also act out of common courtesy.

Banks need to give proper reasons for closing an account. It cannot be arbitrary. e.g.. we don't like the way you wear your sweater/jumper inside-out when you visit the branch.

Here is an extract from a newspaper article:

....innocent people are falling foul of ever-increasing regulation aimed at stamping out money-laundering and other financial crimes.

Critics say these rules are being “overzealously” enforced by banks.
......
Caroline Barr, a member of the Financial Services Consumer Panel, said of Mr Bentley’s case: “The bank is behaving as though suspicion is falling on the account holder. It can behave as though it has no duty of care towards this customer because it has none.”

Ms Barr said that Mr Bentley’s case “highlights the disastrous consequences of a lack of a duty of care in banking, and why we need to legislate for one urgently”.

antrobus

JuicyJesus wrote: »

You think wrong. No business has to provide you with any service it doesn't want to for any reason, barring things like race or sex discrimination.

It's also not in breach of the T&Cs because the T&Cs say that the bank can close the account for any reason given proper notice (or no notice at all in certain limited circumstances).

From the National Westminster Bank current account terms and conditions;

7.1 Closure by us

7.1.1 We can close your account immediately if:

(a) we reasonably suspect that you have given us false information;
(b) we reasonably suspect that your account is being used for an illegal purpose;
(c) you behave in a threatening or violent manner towards our staff; or
(d) you were not entitled to open your account.

7.1.2 We can also close your account by giving you not less than 60 days’ notice before we close your account.

http://personal.natwest.com/personal/current-accounts/terms-and-conditions.html

meer53

GingerBob wrote: »

Can your electricity provider decide to stop doing business with you? No. So why should the banks be allowed to do so? Banking, like energy supply, is a primary service on which we all depend, and without which, life gets very difficult, very quickly. Why then, should the banks be in the privileged position of being able to disown a customer?

The only utility provider who cant refuse to supply you is water. If you dont pay your bills, your electricity can be cut off.
https://www.ofgem.gov.uk/consumers/household-gas-and-electricity-guide/who-contact-if-its-difficult-paying-energy-bills/energy-supply-disconnection-and-prepayment-meter-rules

bigadaj

The difference is of course that you can have many bank accounts but not utility suppliers.

So the golden rule is to have at least two current accounts, if one closes your account then you can operate with the other.

pinkdalek

GingerBob wrote: »

Can your electricity provider decide to stop doing business with you? No. So why should the banks be allowed to do so? Banking, like energy supply, is a primary service on which we all depend, and without which, life gets very difficult, very quickly. Why then, should the banks be in the privileged position of being able to disown a customer?

How much do you pay your bank for them to pay your bills and manage your payments? (not including overdraft/packaged account fees where you have chosen for that service)

A bank is a business, there is choice out there as to who you bank with and if you want to. You don't like their attitude or T&C you go elsewhere. But apart from the product offers you will find they are all in principle the same and adhere to strict guidelines enforced on them.

GingerBob_3

meer53 wrote: »

The only utility provider who cant refuse to supply you is water. If you dont pay your bills, your electricity can be cut off.
https://www.ofgem.gov.uk/consumers/household-gas-and-electricity-guide/who-contact-if-its-difficult-paying-energy-bills/energy-supply-disconnection-and-prepayment-meter-rules

Incorrect. You move to a new property and you are in a deemed contract with the incumbent utility provider. That provider cannot disconnect you and must supply you. If you move to a new supplier, the same rules apply to that supplier. They cannot disconnect you for arbitrary reasons. This is not so with the banks, but it's about bloody time it was.