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

Mnd

OP has had no activity on this forum since last October. I think any advice is falling on stony ground

NosmoKing

I don't think a Bank can close an account without having a good reason to do so, they certainly cannot close it on a whim.


If it has been closed 'on a whim' and you've suffered financial loss as a consequence then that is something you 'may' be able to pursue.



From what you have written it seems that their reasons for closing your account were down partly to how you answered their queries, perhaps something in there gave them the lever to be able to close your account under the t&c's, some spurious reason etc.


In my experience Banks rarely change their minds once they've enacted an aco!!!! closure, look elsewhere but 50k in an account and seemingly a lot of in/out activity re 'family' it would probably raise a red flag somewhere?

eskbanker

NosmoKing wrote: »

I don't think a Bank can close an account without having a good reason to do so, they certainly cannot close it on a whim.

Whether or not anyone agrees with this, they can close accounts without having to specify a reason.

They'll usually have a two-tier arrangement where they can close immediately for reasons deemed significant/urgent, or with a notice period if they're closing at their discretion. NatWest (OP's bank) is a typical example, in their Ts & Cs:

We can close any other [non-basic] account immediately if:
• we reasonably suspect that you’ve given us false information, which was a significant factor in our decision to open your account (or to continue to provide it to you);
• we reasonably suspect that your account (or any other account you hold with us) is being used, or is planned to be used, for an illegal purpose;
• you behave in a threatening or violent manner towards our staff;
• we’re required to do so by law or regulation;
• you’re declared bankrupt;
• you’ve entered into a voluntary arrangement with your creditors to repay your debts; or
• you’ve used your account for business purposes.

We can also close any other current account by giving you at least 60 days’ notice.

The last sentence has no further wording requiring them to either have or explain a reason....

18cc

Well for me I happen to think that a bank should not be allowed to just close your account but that is because I am a weird liberal pinko I expect

As long as you are using the account within the terms and conditions (and obviously legally not illegally) then they have done their checks when they opened the account and accepted you as a customer and they should not be allowed to subsequently close it

for me a bank account is just as much a necessity as water and electricity and they should be subject to the same regulations

I know I am in the minority of thinking on this forum with that opinion

deadendwaterfall

18cc wrote: »

Well for me I happen to think that a bank should not be allowed to just close your account but that is because I am a weird liberal pinko I expect

As long as you are using the account within the terms and conditions (and obviously legally not illegally) then they have done their checks when they opened the account and accepted you as a customer and they should not be allowed to subsequently close it

for me a bank account is just as much a necessity as water and electricity and they should be subject to the same regulations

I know I am in the minority of thinking on this forum with that opinion

It's funny though just how many people on MSE are quick to defend the banks though.

born_again

18cc wrote: »

Well for me I happen to think that a bank should not be allowed to just close your account but that is because I am a weird liberal pinko I expect

As long as you are using the account within the terms and conditions (and obviously legally not illegally) then they have done their checks when they opened the account and accepted you as a customer and they should not be allowed to subsequently close it

for me a bank account is just as much a necessity as water and electricity and they should be subject to the same regulations

I know I am in the minority of thinking on this forum with that opinion

This very question (copy & paste by any chance) was answered in another thread on the same subject.
But as was said further back. This is a old thread for some reason brought back to life..

DCFC79

born_again wrote: »

This very question (copy & paste by any chance) was answered in another thread on the same subject.
But as was said further back. This is a old thread for some reason brought back to life..

Wheres my Cashback revived it.

eskbanker

18cc wrote: »

Well for me I happen to think that a bank should not be allowed to just close your account but that is because I am a weird liberal pinko I expect

As long as you are using the account within the terms and conditions (and obviously legally not illegally) then they have done their checks when they opened the account and accepted you as a customer and they should not be allowed to subsequently close it

for me a bank account is just as much a necessity as water and electricity and they should be subject to the same regulations

I know I am in the minority of thinking on this forum with that opinion

Indeed - based on the poll results at the top of the thread, you're in the 29% rather than the 71%, at the time of posting....

born_again wrote: »

This is a old thread for some reason brought back to life..

Threads with polls are bumped to the top of boards every time someone votes, rather than needing posts to bump them.

boo_star

deadendwaterfall wrote: »

It's funny though just how many people on MSE are quick to defend the banks though.

Because defending them here is the correct answer.

Banks are, at present, free to do business with whomever they wish.

Just like Tesco can, or William Hill, or whoever. They're a private company.

I will say that we're getting perilously close to the point where a bank account is completely necessary to live and at that point perhaps they shouldn't be free to pick and choose who they do business with but we're not quite there yet.

Zero_Sum

boo_star wrote: »

Because defending them here is the correct answer.

Banks are, at present, free to do business with whomever they wish.

Just like Tesco can, or William Hill, or whoever. They're a private company.

I will say that we're getting perilously close to the point where a bank account is completely necessary to live and at that point perhaps they shouldn't be free to pick and choose who they do business with but we're not quite there yet.

My water company is a private company. However i cant opt to go elsewhere, and theyre not allowed to cut you off completely.