Barclays Internal Review Hell

LeighM222

@Flobber

Receive money from household contents sale - not the home itself. The property is worth £2.5m and the mortgage with Cylesdale - this instance is unrelated. Current account from existing bank was not obtained due to conflict with spouse. If Barclays were puzzled as to the reason for new customer action they should've rejected my application - not subsequently rejected it once they had control of money.

I can't take it to the Ombusman as they only review internal bank complaints. Barclays will not carry out a complaint until the review has been finalised.

Flobberchops

I see. Again, I'd like to stress no judgement intended, just trying to view things through the lens of a first party fraud case handler.

Would your existing bank not open an additional sole current account for yourself while the joint account is under dispute?

At any rate, you opened the account with Barclays, and the first real activity in the account is a four-figure sum which is immediately reported fraudulent. At this point I expect they're wondering whether you're a) a scammer, b) money laundering, or c) using a personal account for business activity. Or d), "possibly one, some or all of the above, not enough information to reach conclusion, let's get rid of him".

Realistically I think you have no choice but to let each stage of the chain go through its complete timescale. Let them finish the review, complain, ombudsman. As a final parting shot perhaps threaten to go to the press?

Ben8282

You say you opened a Barclays instant access account. Instant access accounts are savings accounts and the only account you could mean is the Everyday saver.
This is an account which can only be opened in branch by those who are not existing Barclays customers. So you must have gone to all the trouble of visiting a branch to open this rather unattractive savings account paying 0.25% APR.
Many banks don't accept third party deposits into savings accounts. The information available on this account on the Barclays website is quite limited so I can't determine if third party deposits into the account are acceptable or not but this could well be the cause of the problem.
It really does seem a bit odd to be selling off the kitchen appliances of a house valued at £2.5 million prior to selling it. I would have thought that you would want to leave the kitchen intact for viewers of the house to see rather than an empty space where the cooker once was. The buyer may want to move into the house with a nice kitchen already in place rather than having to fit a new cooker themselves. And why auction this cooker and part with it at a fraction of it's value?

LeighM222

@Ben - used Aga’s sell for £4K fitted. Dismantling and fitting costs close to £1,000.

The buyers did not agree to buy the household appliances with the sale of the property.

The Barclays account was a regular bank account applied for online - not a savings account.

JuicyJesus

Let me clarify my existing remarks.

You opened a brand new account with a brand new institution with which you have no history, and therefore no real potential for benefit of the doubt. Your very first transactions are £100 in cash, followed by a sudden £2,500 deposit from a third party source. That third party source then reports that the deposit was a scam/fraudulent. You can't really provide any good explanation for why these funds were deposited in a brand new account, rather than your existing and apparently functional account. Your reason for the receipt of the funds is the sale of large household goods at what appear to be a hefty discount.

So far, all of this sounds exactly like the MO for a money mule. Yes I would absolutely review your account if I were in Barclays' shoes and probably not want you as a customer. The only thing I think they've done wrong here is not allowing you to raise a complaint - they are required by FCA rules to log a complaint, have eight weeks to investigate it and fully respond and then give you FOS rights if you are not happy.

[Deleted User]

JuicyJesus wrote: »

Let me clarify my existing remarks.

You opened a brand new account with a brand new institution with which you have no history, and therefore no real potential for benefit of the doubt. Your very first transactions are £100 in cash, followed by a sudden £2,500 deposit from a third party source. That third party source then reports that the deposit was a scam/fraudulent. You can't really provide any good explanation for why these funds were deposited in a brand new account, rather than your existing and apparently functional account. Your reason for the receipt of the funds is the sale of large household goods at what appear to be a hefty discount.

So far, all of this sounds exactly like the MO for a money mule. Yes I would absolutely review your account if I were in Barclays' shoes and probably not want you as a customer. The only thing I think they've done wrong here is not allowing you to raise a complaint - they are required by FCA rules to log a complaint, have eight weeks to investigate it and fully respond and then give you FOS rights if you are not happy.

Unless the account is being used for ML purposes in which case they can close the account straight away with no notice or other prior contact.

LeighM222

@JJ - as explained the Aga is valued at £4K fitted - fitting costs close to £1,000. I sold mine for £2,500 leaving the buyer to arrange dismantling, collection, delivery and reassembling. This is not a hefty discount.

The reason, as explained, for opening a fresh account were to deposit the funds resulting from household contents sale. I didn’t want to deposit these into my joint account but into a sole account.

The reasoning for the internal review is not in question - I want release of funds which are rightfully mine. If the option existed that the account would be reactivated I would decline. With respect of you and other posters I’m not looking to be cross-examined, nor seeking justification for the internal review - I could write chapter and verse as to why the review process is poorly handled.

I wish to seek advice on how to proceed.

18cc

In answer to your specific point which I think is a fair question about how to proceed from now
there is a very simple answer - you just have to wait and try not to get too stressed

there is nothing you can do. I mean this - it is the law that Barclays cannot talk to you whilst they are looking at the account

all you can do is wait and occasionally perhaps ask how things are going although you're likely to get a reply

sillyhilly

I work in this area so here's my 2 pence worth. Please note, the following is not me judging, it is based on experience.

1) You opened a new account and instantly received a large deposit from a third party which is, in itself, suspicious.

2) The remitting Bank (Natwest) received notification that this was potential fraud. They may or may not have notified Barclays. If they did, the risk of the account was increased further.

3) Barclays may have submitted a report on you. Given that they may have been notified that these funds were potentially fraudulent and represented the proceeds of crime, this report will have required consent to proceed with the transaction / unlock your account from a government body - this can take up to 7 working days.

4) If a response is not provided by this government body / consent is denied, there is a moratorium period of an additional 30 days whilst further investigations are undertaken.

Overall, it appears that Barclays hands are tied and they haven't really done anything wrong. Ultimately, it will most likely result in the £2,500 being returned to the purchaser and your account being closed. Unless they have a change of heart and believe you're no longer suspicious - they likely won't.

You can complain to Barclays. I guarantee that you will not get anywhere with it as their actions are backed by regulation / legislation.

You can complain to then FOS. See the point above. You'll waste your time.

My advice: sit and wait. It's not great, however you need to see for yourself that your very actions contributed to this as they were suspicious. Opening an account for receiving funds from sale of household goods is, to me and other financial crime professionals, entirely illogical.

LeighM222

@Sillyhlly - my response below.

1. The second deposit was made 8 weeks after the account was opened. Is £2,500 considered large?
2. I believe so.
3. Good to know - thank you.
4. Understood - although it has been 7 weeks since the account was in review and they came to determine to close the account 5 weeks ago.

Barclays have not communicated in any form except for letter of closure. I was not told the account was being put into review nor how to claim back my money. Barclays have a legal obligation to treat customers fairly - this has not been achieved due to lack of communication and advising me incorrectly in attempt to justify their actions - so I disagree with 'Barclays haven't really done anything wrong.'

Your suggestion is whilst my actions are suspicious that I should be treated as guilty until proven innocent - is this how financial houses work? Is it suspicious that a man buys a 200mph supercar but lives in a built up area that is restricted to 20mph - that would be entirely illogical, though not illegal or against the rules. I note that opening the account appears to be 'odd', 'weird', 'illogical' but I didn't realise that this meant illegal. I find the whole process very disturbing - how can a 'review' take place without discussing it with the person in question? I have no criminal history, have a clean credit file, but am being treated like a criminal. Barclays, having a history of financial scandal, have possesed my funds (removing it from my account before it closed it), and not given reason or explanation on how to claim it back. I know where my suspicions lie...

Because there were small debits from the account there is not enough credit to return the funds to the buyer (if they choose that option). I cannot see Barclays putting themselves out of pocket.