TSB Have Suspended Account

woolyG_2

My mum who is 80 recently cashed in her £95k investment with Prudential and the money was paid into her TSB account. She agreed to lend a close family friend £75k, she went online and authorised the payment, the money was being sent to his bank in Puerto Rico, but TSB refused the payment and her account was suspended. Up to this point, I can fully understand why the payment was blocked and the account was suspended as the payment may have looked fraudulent. My mum and I then went to our branch the following day to try and resolve the problem, she has been at the bank for 40 years so they do know her. We were then separated into different rooms and my mum was questioned about the payment, I think they believed she was being coerced, I was made to feel like a criminal. My mum was adamant she wanted the payment to be sent, but they continued to refuse and kept the account frozen. She was told they need to see two documents with her address on.

Today she returned to the bank with the requested documents on her own this time, as there was no way I was going through that again, but again they refused the payment, have left the account frozen and said they need more information about the payment she wants to send, she was left very upset and angry by how they have made her feel. She cant understand why she cant spend her own money as she wants and was made to feel that she was incapable of making her own financial decisions. Has anyone any suggestions how we can get this resolved or what we should do.

8i6daddy

I can't help with your question but If I was "lending" someone £75k I'd want it documented somehow...

woolyG_2

Yes maybe that is what the bank is concerned about that if they authorise the payment there may be some sort of come on them due to her age. If some sort of letter was drawn up stating the agreement signed by both parties nothing can be disputed then by anybody.

enthusiasticsaver

Banks have a duty of care re elderly customers and may be worried she is being coerced. £75k is a lot to give to a family friend. What if she never sees it again? I think you need a solicitor to draw up a proper agreement and so an independent witness can certify she is of sound mind and not being coerced.

18cc

This is absolutely appalling and it is of no concern to the bank whether you have a loan agreement or any other documentation in place

their responsibility ends with holding the payment for a short time whilst they talk to the account holder and if the account holder says yes that was me making the payment and I want to do it that should be the end of the matter

it is becoming far too commonplace these days and I would complain and get as much compensation as you can

it is your money and as long as the bank are satisfied that the correct customer has authorised the payment than they should let it through

enthusiasticsaver

18cc wrote: »

This is absolutely appalling and it is of no concern to the bank whether you have a loan agreement or any other documentation in place

their responsibility ends with holding the payment for a short time whilst they talk to the account holder and if the account holder says yes that was me making the payment and I want to do it that should be the end of the matter

it is becoming far too commonplace these days and I would complain and get as much compensation as you can

it is your money and as long as the bank are satisfied that the correct customer has authorised the payment than they should let it through

What is also becoming common place is fraudsters or criminals targeting vulnerable elderly customers for their money. When relatives find out the first people they blame are the bank for handing the money over. I can understand why the bank are being cautious.

xylophone

It appears that your mother is fully compos mentis and capable of making her own decisions.

BUT

Should you not be encouraging her to see her solicitor with a view to drawing up a formal loan agreement?

Have you discussed with her what might happen if she herself should have urgent need of this money?

Have you discussed with her how she would feel if the friend in Porto Rico defaults on the loan?

Are you/she really surprised that the bank is taking a "belt and braces" approach?

woolyG_2

She can be quite stubborn and hates being told what she can and cannot do with her own money. She is from the generation who hides her money under the mattress. All this to her just magnifies in her head the belief that banks cant be trusted. She has already told the bank there is no interest on the loan and no strict repayment schedule and they were not happy.

I mentioned to her about seeing a solicitor to draw up an agreement, but she just thinks it is a waste of money.

IanManc

I admire the way TSB are handling this.

To a bank which is trying to exercise its duty of care to protect and elderly customer, and which is trying to protect its own back too, a scenario where an 80 year old cashes in an investment and wants to transfer £75k to a bank account in Porto Rico to lend to someone without any paperwork or agreement that they can be shown, looks like a fraud.

It looks highly suspect to me too. To be honest lending such a sum without a written agreement, or indeed at all, is crackers.

I would have thought that instead of complaining about TSB the OP should be having a serious chat with his / her mother. Something's not right.

EachPenny

woolyG wrote: »

I mentioned to her about seeing a solicitor to draw up an agreement, but she just thinks it is a waste of money.

If the friend dies, marries, divorces, stops being a friend, or goes bankrupt then your mum may never see the money again. The cost of a solicitor drawing up an agreement would be minor in comparison.

However, your mum might be correct that it would be a "waste of money", as even having such an agreement would still leave her with the problem of taking action to recover money from someone not living in the UK and presumably not having any assets under UK jurisdication.

In all honesty, and with no offence intended, being willing to lend that amount of money to someone outside the UK with no legal agreement in place - and after having the risks explained - still wanting to go ahead with the transfer, would raise certain questions in the mind of someone whose future job prospects might depend on stopping a vulnerable person transferring a very large sum of money to an overseas-based fraudster.

dj1471

A formal complaint setting out all the facts is the way to go here.

However I would strongly recommend that a formal loan agreement is drawn up such that the debt will pass to a family member upon your mother's death.

Even if the recipient of the money is 100% honest and intends to pay it back, £75k is a lot of money and I imagine it will be some time before it's repaid in full.