Lloyds Account closure - no reason given

Caroline19

I recieved a letter yesterday from Lloyds bank stating:

"We often review accounts to ensure that we can continue to support our customers with their banking needs and following a recent review of your account, we are writing to let you know that unfortunately we're unable to maintain a banking relationship with you"

"As such we will be closing your account on 8 January 2018"

"Funds will be paid by cheque to the above address, unless you advise otherwise or use the account switching service when funds will be transfered electronically".

Has anyone recieved any similar letter? I closed my account today itself rather than wait till 8 january. I went into the branch they were unable to tell me anything as nothing on the system. I have submitted an online complaint requesting them to give me a reason for this. I figured what ever assumption it is that they have i can help clear it as there is absolutely nothing wrong with my account. I am worried, is it possible that they have put a marker on my account? The manager at the branch said i have been managing my account well so he doesnt know why i was sent that letter. He confirmed that theres no information on file other than that letter.

Can anyone please shed light on these malpractises being carried by banks just because they can?

Thanks

worried_jim

You will never find out. Could be a simple financial association with a third party who was dodgy af.

YorkshireBoy

A good few people have reported similar over the last couple of years or so.

Questions asked of them were:

Have you been passing business transactions through the personal account?

Have you been exploiting 'Club' and not using it as a normal transactional account?

Are you exploiting BoS Vantage and Halifax Rewards too?

Have you had any high value credits?

Is there a very high monthly throughput?

There are one or two 'experts' on LBG closures, so probably one of them will be along shortly to ask you for the code/reference on the letter, from which more info may be forthcoming, but in the meantime perhaps you could answer the above?

As to your branch staff/manager's comments, they are simply not allowed to tip you off if they (as in LBG) suspect money-laundering...so they'd just fob you off with "there are no notes on the file".

Caroline19

No reason was given, no refrence given, i had no direct debits on the account but i took a 16 thousand pound loan from another bank and when i got it i transfered to lloyds then to santander and then back to lloyds. I get paid almost 3 thousand a month after tax but not to lloyds. Lloyds know nothing about my second account, my loan, my wage nothing at all.

I dont do business never have unless they confused these transactions for business then i dont know. I just dont understand their knee jerk reaction. They stated that if in future i ever open an account with them again it will be closed.

Something isnt adding up but as always, a common man has no right as far as those big wigs within the banks are concerned. To date i dont know the reason and not sure if they marked me on Cifas, i have to wait 20 days to find out if they have i intend to fight it. I understand they dont want me to bank with them for whatever reason but to mark me on cifas is taking it too far seeing as i have a paper trial for all transactions on my account not that i was using it much. Inevitably i was planning on closing it anyway.

I still feel that they should atleast give me a genuine reason. A letter of that nature is too extreme for something based on unfound assunption. I say this because no reason was given.

Kim_13

This is one of the many threads highlighting a similar case: https://forums.moneysavingexpert.com/discussion/5407611

The advice is always to check all of your credit files (CallCredit via Noddle, Equifax via ClearScore and Experian via MSE Credit Club) for any markers they might've put in the CIFAS section. All three of these are free to use. Further details can be found on this page: https://www.moneysavingexpert.com/loans/check-free-credit-report

If a fraud marker has been placed, you'll see other banks closing your accounts when they become aware, so you should challenge it. This would involve evidencing where the funds came from. The marker would otherwise stay there for 6 years and prevent the opening of other products.

Edit in response to second post: Transferring an amount as big as 16 thousand only to transfer it back again probably is going to ring money laundering bells unfortunately. They can't give you a reason because of the 'tipping off' rules.

BoGoF

To be honest who actually does what you have described with the £16,000 loan - it would have red flags all over it and was asking for trouble. There is no point trying to discover the reason why, what you feel is irrelevant. They no longer want your custom.

Caroline19

I have a paid subscription for both experian and equifax. Theres nothing on their. Sent in the SAR for Cifas today so now i have to wait 20 days.

YorkshireBoy

Caroline19 wrote: »

I have a paid subscription for both experian and equifax.

£30 a month by going direct!?...or slightly cheaper via checkmyfile or similar?

GingerFurball_2

What you've done with the loan looks sketchy as f*ck.

You can't be added to CIFAS unless there's clear evidence of fraud.

enthusiasticsaver

I agree that £16000 in to the account then out then in again would look suspiciously like money laundering activity.

18cc

I recently had £50k (from a matured 1 yr savings account) arrive in my Lloyds account and promptly over a few days sent it out again £15k at a time to a new Tesco Internet Saver with no problems so I don't think £16k would necessarily cause a problem...