Lloyds, Halifax and MBNA account closure

lopsyfa

Long story but I will try to be brief.

I received 4 letters dated 05-April-2019 from Halifax and Lloyds that they are closing my 4 accounts with them (1 club Lloyds have had since 2009, 2 credit cards with Lloyds and 1 Halifax reward account) three days ago with 65 days notice. So I called the customer service and was told I need to go to branch to appeal so I took time off work but when I got to the branch (LLoyds) the manager said there is nothing she can do, i just need to wait for the 65 days before the account is closed but the account will operate as normal. I reiterated that the customer service said I should come to the branch but she said "sometimes the people on the phone don't know anything. So she just fobbed me off". She told me call the number on one of the letter.

I called the number as she said and got through to the customer service department and was told the manager is wrong. They will call the manager and make sure she understands. He tried to call but couldn't get through but he sent an email to ask her to call me. I asked whether I could try another branch, maybe a Halifax and he said yes. He called and also couldn't get through but also sent an email to the manager. So I drove straight to the branch. Initially they wouldn't let me see the manager, the lady said nothing they can do in branch but I insisted your customer service told me to come. After waiting 30 minute, the manager said the same as the previous manager and that is nothing I can do. Your account looks normal, it is business decision. I asked him why they keep sending me around if I can't appeal, he said I can raise complaint for you. I said no, I can raise complaint myself ( I don't trust him to type my complaint appropriately).

So I logged on to resolver and type the story above. My complaint is really poor customer service by Lloyds and time wasting. I wanted them to confirm who is right between the people on the phone and the branch managers and also to compensate me for wasting my time. I do understand Lloyds can close the accounts.

One of the managers did call me back and she simply said again nothing can be done. She even printed their procedure online and said listen I will read it to you.

After two hours I got a phone call and they said the managers are wrong and they will call them to make sure they understand how to do this. It is not your fault our staffs don't understand how to do their work. They also offer me £70 for the time wasting (which I accepted). She promised to call the manager and make sure they call me back so I can arrange the appeal. They credit my account with £70 straightaway.

18cc

I don't know (an I suspect no-one on here will know) why your accounts are being closed but the thing that jumped out at me from your post was using the Lloyds account as a 'hub' - whilst of course not against any T&C etc they may not like it.

When I used to have a lot of accounts from switching etc I used to send money on a 'circular' route ie bank A -> B -> C -> D etc rather than having a 'hub'.

lopsyfa

18cc wrote: »

I don't know (an I suspect no-one on here will know) why your accounts are being closed but the thing that jumped out at me from your post was using the Lloyds account as a 'hub' - whilst of course not against any T&C etc they may not like it.

When I used to have a lot of accounts from switching etc I used to send money on a 'circular' route ie bank A -> B -> C -> D etc rather than having a 'hub'.

I agree but is that enough to close all my accounts including credit cards with MBNA and even one with Halifax without letting me know what I did wrong and even prohibit me from ever having account with them forever. I didn't even know I was doing anything wrong. I have about 7 direct debits on the accounts and use it as my main spending account. Perhaps they should amend their terms and condition.

I will change to the circular route in the future but to make things simple I setup only the Lloyds in the other accounts. Hopefully I get to find out the reason.

BoGoF

Bottom line is they don't need to tell you anything. For whatever reason they don't want your custom and have given you tge required notice.

I wouldn't waste my time chasing answers you won't get.

lopsyfa

BoGoF wrote: »

Bottom line is they don't need to tell you anything. For whatever reason they don't want your custom and have given you tge required notice.

I wouldn't waste my time chasing answers you won't get.

Not according to https://forums.moneysavingexpert.com/discussion/5768330/halifax-lloyds-and-bos-closing-my-accounts

Perhaps you won't want answer but I will try to see if I can get something. Perhaps to help others in the future or to avoid this mistake with another bank. They don't want my custom but are happy to keep the mortgage account with the monthly interest.

I am sorry I respectfully disagree with you.

colsten

Lloyds, Halifax and MBNA all belong to the same group. Thus it's not surprising that all your accounts with them are affected - - - although it is odd that Halifax will continue to provide you with a mortgage. In your shoes, I would complain to the group CEO, but not until I had checked all my credit files, and also established whether I have a CIFAS marker.

You can complain to the credit agency about whoever provided what you believe is false information. They will then contact the organisation that provided the data on your behalf to investigate it. You can also file a notice of correction on your credit file.

Whether you get anywhere is questionable. Usually, when they have decided not to want your custom, that's the end of it.

Whatever the outcome, one lesson to learn is that you should not have all your accounts with the same financial group. Multiple accounts/cards are good to have, but spread them across different financial institutions.

BTW, you didn't have a Club Lloyds account since 2009. The account was only launched on March 31 2014. You need yo have your facts straight for any complaint you make.

EDIT: I don't believe the reason for the closures is your use of the Club Lloyds as a hub. You aren't the only one who is shifting money between your accounts - I have been doing this for many years across Lloyds, BOS, Halifax, as well as TSB when they were still part of LBG. I have reduced the number of accounts I am holding with them over the last year or two, but for many years, I had 16 LBG current accounts, all of them used as savings/reward accounts, with the same amount of money going between them each month, plus numerous regular savings accounts, and never once had any problem with them. There are plenty of other people doing similar.

I reckon it's more likely to do with the amount of unsecured credit you have (2 Lloyds credit cards, two MBNA credit cards, 2 current accounts [-overdrafts?], a BMW Finance loan), and the apparent screw-up by BMW Finance. Your mortgage is secured on your house so that's not a big risk for the bank, but they might consider your unsecured loans as risks. You might not want to share how much you owe / what your credit limits are / what your track record for paying your CCs is, but LBG obviously do have that information and they might consider you as an undesirable risk. You are very unlikely to ever find out the real reason.

lopsyfa

colsten wrote: »

BTW, you didn't have a Club Lloyds account since 2009. The account was only launched on March 31 2014. You need yo have your facts straight for any complaint you make.

I have had that account since 2009. Now they call it Club Lloyds. If they can call it Lloyds rewards next year, does that mean I open the account next year? All the facts in my statement are correct or I should include in my complaints all the times Lloyds have change the name of the account?

colsten

lopsyfa wrote: »

Not according to https://forums.moneysavingexpert.com/discussion/5768330/halifax-lloyds-and-bos-closing-my-accounts

Perhaps you won't want answer but I will try to see if I can get something. Perhaps to help others in the future or to avoid this mistake with another bank. They don't want my custom but are happy to keep the mortgage account with the monthly interest.

I am sorry I respectfully disagree with you.

What are you trying to prove with this thread? It merely says other people had their accounts closed and have not found out the reason for it. Well, at least they never returned to the thread to tell us that they found out what the reason was. I hope you will do as and if you do find out.

colsten

lopsyfa wrote: »

I have had that account since 2009. Now they call it Club Lloyds. If they can call it Lloyds rewards next year, does that mean I open the account next year? All the facts in my statement are correct or I should include in my complaints all the times Lloyds have change the name of the account?

You may have had another Lloyds current account before then, and then upgraded to Club Lloyds, but you did not have a Club Lloyds before March 31 2014 since nobody had a Club Lloyds before March 31 2014. Lloyds didn't just rename your account, either. You had to request an upgrade. It's important to pay attention to such details. It doesn't add to your credibility to claim "facts" that are simply not facts, and that can so easily be identified as such.

alphabravocharli

I beg to differ from your point of view, If it was the case of CIFAS, OP would not have been given 65 Days of notice without account freeze. It might only be that they have categorized OP as a risky customer or don,t like the way he operate his account, so they got rid of him.

Regarding mortgage, they tend to keep Loan/Mortgage account if they had not suspected Fraud.

You have no issues with your account till today but there is no guarantee that this will always be the case. The day there computer flag anything suspicious they will do the same with you.

My sympathy is with OP, as in my own point of view this is not a good practice, I also got my account closed with same banking group sometime back.

colsten wrote: »

Lloyds, Halifax and MBNA all belong to the same group. Thus it's not surprising that all your accounts with them are affected - - - although it is odd that Halifax will continue to provide you with a mortgage. In your shoes, I would complain to the group CEO, but not until I had checked all my credit files, and also established whether I have a CIFAS marker.

You can complain to the credit agency about whoever provided what you believe is false information. They will then contact the organisation that provided the data on your behalf to investigate it. You can also file a notice of correction on your credit file.

Whether you get anywhere is questionable. Usually, when they have decided not to want your custom, that's the end of it.

Whatever the outcome, one lesson to learn is that you should not have all your accounts with the same financial group. Multiple accounts/cards are good to have, but spread them across different financial institutions.

BTW, you didn't have a Club Lloyds account since 2009. The account was only launched on March 31 2014. You need yo have your facts straight for any complaint you make.

EDIT: I don't believe the reason for the closures is your use of the Club Lloyds as a hub. You aren't the only one who is shifting money between your accounts - I have been doing this for many years across Lloyds, BOS, Halifax, as well as TSB when they were still part of LBG. I have reduced the number of accounts I am holding with them over the last year or two, but for many years, I had 16 LBG current accounts, all of them used as savings/reward accounts, with the same amount of money going between them each month, plus numerous regular savings accounts, and never once had any problem with them. There are plenty of other people doing similar.

I reckon it's more likely to do with the amount of unsecured credit you have (2 Lloyds credit cards, two MBNA credit cards, 2 current accounts [-overdrafts?], a BMW Finance loan), and the apparent screw-up by BMW Finance. Your mortgage is secured on your house so that's not a big risk for the bank, but they might consider your unsecured loans as risks. You might not want to share how much you owe / what your credit limits are / what your track record for paying your CCs is, but LBG obviously do have that information and they might consider you as an undesirable risk. You are very unlikely to ever find out the real reason.

lopsyfa

colsten wrote: »

You may have had another Lloyds current account before then, and then upgraded to Club Lloyds, but you did not have a Club Lloyds before March 31 2014 since nobody had a Club Lloyds before March 31 2014. Lloyds didn't just rename your account, either. You had to request an upgrade. It's important to pay attention to such details. It doesn't add to your credibility to claim "facts" that are simply not facts, and that can so easily be identified as such.

No I didn't request an upgrade. I had a Vantage Account and when that was withdrawn, the account was automatically upgraded ("renamed") to Club Lloyds. I retained the same sort code and account number. Not that it matters anyway, the account has been open since 2009 - that is the point I am trying to make.

For credit verification, I still get asked what account did you open in 2009 with Club Lloyds as an option. By your logic, I should have not answered that question or told them I didn't open any account in 2009. I am sorry I don't want to waste time to argue what year my account was open with you. The year my account was opened has no effect on this particular complaints - just to highlight I was a long term customer. It also doesn't add to your credibility if you don't understand that an account before 2009 can be upgraded to Club Lloyds. If you want to pick at inaccuracies, pick something else.