Halifax Closing Current Account

StarShapedPeg

Hello, I wonder if someone could offer advice.

We received two letters from Halifax yesterday saying that after a review of our accounts, they can no longer maintain a banking relationship with us and therefore will be closing our account in 65 calendar days from the date of the letter. They urge us to give this letter our urgent attention and seek alternative arrangements.

I spent about an hour on the phone with them yesterday and today just to be told they can’t give me any further information and basically read the letter back to me.

I’m stunned and don’t really know where to go to.
If I switch accounts from Halifax to another bank does the new bank know why Halifax randomly decides to close accounts?

I’ve been with Halifax for about 20 years and it’s my own personal and our joint account. My salary is paid into it and all our shopping and bills come out of it. I’ve looked through transactions for the past couple of months and there is nothing odd I can see.

You would think after 20 years they would be able to give you at least a reason why. If they are suspecting something wouldn’t they say or suspend the account immediately.

xylophone

Can it be that you don't fit their customer profile any more?

Organise a switch?

https://www.moneysavingexpert.com/banking/compare-best-bank-accounts/

xylophone

https://www.financial-ombudsman.org.uk/publications/ombudsman-news/48/banking-closing-accounts.htm

Don80

Hi

Check your credit files to see if there has been a CIFAS marker put on your file. If there has then this might be part of the reason. If that's happened the bank are not allowed to tell you this is the reason as "tipping off" is illegal.

If there is nothing apparently wrong with your credit file, then you should be able to open a new account elsewhere easily, and if you use the current account switch service everything gets moved for you. I would avoid any bank in the Lloyds Banking Group (Bank of Scotland - Halifax is just a BoS trading name) and Lloyds Bank are the main ones.

This is tricky as their Ts&Cs suggest it isn't fraud related, they say in 24.1 that they are unlikely to give you time if they suspect fraud. They say "any other reason" would typically be two months notice.
http://static.halifax.co.uk/assets/pdf/bankaccounts/pdf/bank-account-guide.pdf

Terry_Towelling

Sounds odd.

Can you re-direct everything to your HSBC account - if you still have it?

You're not using the Halifax accounts to run a business of any sort are you? No crypto trading? Just wages and bills?

StarShapedPeg

I have lots of current accounts (Santander, Tesco, first direct, hsbc, TSB) so in terms of switching only have a couple of options left really.

I checked Experian- nothing on there and clearscore is 20 days out of date but also the same as previously. I don’t run any business accounts, no crypto trading, no gambling it’s just food shopping and such stuff. One investment bond I had matured which came through in February and we won premium bonds in March which was £25. Those are the only ‘out of the norm’ things.

It’s just a bit perplexing and the fact they refuse to say why, worries me.
Thanks for your replies though. You’ve all been more helpful than they have!

Don80

StarShapedPeg wrote: »

I have lots of current accounts (Santander, Tesco, first direct, hsbc, TSB) so in terms of switching only have a couple of options left really.

I checked Experian- nothing on there and clearscore is 20 days out of date but also the same as previously. I don’t run any business accounts, no crypto trading, no gambling it’s just food shopping and such stuff. One investment bond I had matured which came through in February and we won premium bonds in March which was £25. Those are the only ‘out of the norm’ things.

It’s just a bit perplexing and the fact they refuse to say why, worries me.
Thanks for your replies though. You’ve all been more helpful than they have!

If there's nothing in your credit file, check the other two (just in case!). MSE Credit Club, Clearscore and Noddle will cover all 3, and they're all free :-)

Switching is very easy, I have done it twice and everything went through ok. You should be able to choose which bank you want and log in, then switch your Halifax account. You don't need to open a new bank account if you are happy with one of the ones you have. For example, TSB is not part of LBG so should be ok:
https://www.tsb.co.uk/current-accounts/switching-bank-account/

You would just click the "Already have a TSB account" and they will do the rest. :-D

18cc

Move everything away from the bank - use a switch or do it manually, it is up to you but I would do it manually. Contact all DD originators give them your new bank details.

Then submit a formal complaint to Halifax. You can do this if you didn't switch as you will still be a customer. If you don't reply to your satisfaction go to the FOS. You probably won't get anywhere but you might do and anyway it will get the decision reviewed by the complaints team.

Don't take it lying down - cause some waves.

Ben8282

StarShapedPeg wrote: »

I have lots of current accounts (Santander, Tesco, first direct, hsbc, TSB) so in terms of switching only have a couple of options left really.

I can't really think of a reason why Halifax should suddenly decide to close this 20 year old account although I note that you say 'we' and 'our' so obviously it is not a sole account.
Two things come to mind as possibilities. Firstly, why do you have so many current accounts? This may have something to do with the decision.
The second thought is that this may be connected in some way to the other person whose name appears on this joint account. I am curious as to why when you have so many current accounts your wages are paid into a joint account. It just seems a bit odd.

Thrugelmir

What's the purpose of all your current accounts. What activity passes between them.

StarShapedPeg

It did occur to me that perhaps I do have too many accounts but use them to earn interest; tsb earns 3% on £1500 etc etc. My Halifax account feeds all these other accounts and the regular savers, and its the only account that I use to shop with.

But I’ve been doing this for years, perhaps Halifax just got fed up! I have an awful lot of untangling to do in the next two months.
Thanks again, all very helpful.