Account frozen

odevans

Long story, will try to keep it short.
I've gone self employed, so my grandmother very kindly sent the family some money, much of which I'll be using to pay bills, including an IVA (mental breakdown years ago due to truly awful things, went mad financially trying get us through it). Initially, the cheque to my mother - who would then disperse the money to my brother and I - bounced, so my mother spoke to her bank and my gran spoke to her bank, both understood that the funds were legit. Second cheque (remember that the first one bounced) went through fine, but the receiving bank has frozen my mother's account, due to an investigation into "fraudulent activity". Mother phoned her bank- may be frozen for a whole month! This means that I won't be able to pay my bills as planned, which could cause an issue with my IVA. I mean, what's suspicious about an 86 year old pensioner sending her daughter money, after both parties spoke to their own banks individually  about the transaction before it went through?

My questions: What can we do in such a situation? How can this be a justifiable reason to hold funds, is there no criteria for this? What can I do if my IVA fails because of this, can I hold them liable as my finances would have been fine as we planned it this way (me going self employed, family helping until money rolls in)? 

Apologies for grammatical faux pas, awful at typing on my phone.

Any advice is entirely appreciated. Hope and are safe and sound!

[Deleted User]

You'll need to wait for them to complete their investigations.  Nothing else you can do.  And no, you can't hold them responsible if your IVA fails.

You mother and grandmother telling their banks that the transaction was fine won't have achieved anything.  That's what the money launderers tell their banks too.

Focus on seeing how you can still make payments to your IVA and bills in the meantime. 

mwarby

If you haveng already, contact your IP\insolvency company. One delayed IVA payment alone isn't enough for an IVA to fail, even less so when its known about and you are engaging with the IP

odevans

Thanks for the reply.
So they can really freeze an account entirely for a whole month? I'm not sure that a transaction from a pensioner who recently received inheritance, who decided to pass some on to her daughter (both retired), is really a difficult thing to see, especially when it's all visible in recent bank transactions. 

[Deleted User]

They can freeze it until they're satisfied with the source of the funds.  May be less, more be more.

They don't know about the inheritance or any of the back story.  That's why there is an investigation.

odevans

Thanks mwarby, will do. Didn't see your post until after I posted the above.

soulsaver

RBS/Nat West? 

Thrugelmir

Was the second cheque for a sizable sum of money? 
Why did the first cheque bounce? 

odevans

soulsaver said:

RBS/Nat West? 

Both nationwide. Very easy to see the chain of financial events- Money from solicitor into my grandmother's account > transfer to mother's account.

Thrugelmir said:

Was the second cheque for a sizable sum of money? 
Why did the first cheque bounce? 

Quite a big cheque, 14k. The first cheque bounced as the bank wanted to make sure that my gran wasn't a victim of 'elder abuse'- completely fair and I can appreciate their decision. This is why both parties spoke to their bank, discussed the source (easily seen within the account) and proceeded as advised by their bank.

mab3000

It is a possibility that there could be another unrelated reason as to why your mums account is currently under investigation. Because the bank is not allowed to say what they are investigating and why. 

Ergates

odevans said:

Thanks for the reply.
So they can really freeze an account entirely for a whole month? I'm not sure that a transaction from a pensioner who recently received inheritance, who decided to pass some on to her daughter (both retired), is really a difficult thing to see, especially when it's all visible in recent bank transactions. 

Not just can, but *have to* by law - failing to do so can result in the bank receiving *massive* fines and even, potentially, somebody going to prison.  They're not just doing it for fun