Bank said their closing account

Findif

Someone I know has received a letter stating that his bank accounts with the bank are going to be closed within 2 months.

He has a credit card with them with debt of 700 pounds.

He basically had received a criminal conviction earlier this year and suspect the bank was contacted by the police to check his history. But he was not charged or convicted of a financial crime or anti money laundary. It was a conviction for something else.

But he has had a few problems over the last year which he went into unplanned OD number of times. But always got out of it and stayed in credit.

What will be the reason for them choosing not do business with them ? Would it be both of the reasons. I read something online about being from a different country or links with it is a common reason. But he's British born (English).

Also in the letter they have stated he could close the bank accounts himself before 2 months . Would it be be better if he did that? Or let them do it instead ( in the hope to complain to fos) ? And how would he pay his credit card ? He's been paying minimum monthly instalments ?

Shakin_Steve

Banks can close an account at any time they want to. They do not have to give reasons and, quite often, it's just a case of the account holder not fitting their customer profile any longer. You (your acquaintance) will not get an answer as to why they have done it, they have procedures which they do not wish to become public knowledge, for obvious reasons.
Whether they close the account or you close it will make no difference. Any complaint will not succeed. Presumably, within the two month time frame, another account will be opened, and the credit card can be serviced from that. As a last resort, the cc company will send paper statements, and these have a paying in slip attached.
Best to just move on.

Findif

Will that mean he is black listed from the bank forever ? And will he have to pay the full amount.... and if they close the account would it affect his credit score ?

[Deleted User]

It will be up to the bank if they allow hims back. They will expect his to repay in full.

He doesn't have a credit score. The status of the accounts will be marked on his credit files. The worst stuff will be recorded on CIFAS, so he should check there too.

karlie88

You should switch the account over and get a switch incentive - at least that way you make some money from nothing.

If you want to know more about why they're closing your account, make a Subject Access Request to your bank.

Check your credit report for a CIFAS marker on a weekly basis.

Good luck to you.

alphabravocharli

I was under the impression that in case of CIFAS bank normally suspend the account provided they suspect any fraud. In this case they have given 2 month time which mean they are not closing due to suspicion of fraud or AML but may be customer being too risky or deemed unprofitable.

PRAISETHESUN

Unfortunately most banks reserve the right to close an account for or no reason by giving 60 days notice - they can actually close it sooner if it is because of financial crime, so my guess that isn't the case.

If the debt isn't paid, it will not have a positive effect on your friend's credit file; they will get missed payment markers, followed by defaults/CCJs. I wouldn't be surprised if that also means that the bank blacklists them.

And as has been mentioned, since the account is going to close anyway, it would make sense to jump ship sooner and switch the account elsewhere to gain a switch incentive

Joyce7199

Sounds like he won’t be able to bank with that bank again, once they close your accounts, it stays on system for quite some time. If it was Halifax for example he will also not be able to open accounts with Lloyds because it’s the same banking group.

Findif

Well the credit card has been paid on time always (minimum payment).

The reason he wants to leave the account open for them to close it. So he can complain to fos about them incase he's been treated unfairly.

In terms of paying the credit card off. Would it be possible to continue with Minimum payments? Or do they have the right to ask for the full.amount ?

alphabravocharli

They can do both things can continue with the payment option or can ask for Full Payment as well. Better to ask Bank they will be able to confirm what course of action they will take.

Shakin_Steve

If he hasn't broken the terms and conditions of the credit card, he can carry on as he has been doing.