Natwest wants to close the account of my son without explanation

eskbanker

Malkytheheed said:

I suspect that like many businesses tightening their belt they are just getting rid of their less profitable customers under the guise of fraud.

I'm not aware of them accusing anyone of fraud, which is after all a criminal act.

Unfortunately their obligations and responsibilities under AML legislation are inherently opaque (to customers) so it's perhaps understandable that people cast aspersions like that, but in the same way that such assertions can't be disproved, they can't be proved either.

The FCA has many flaws but it's not unreasonable to expect that they'd be all over institutions abusing their powers and closing disproportionate numbers of accounts without good cause....

dekaspace1

I know in the past, I had 2 bank accounts with different banks that someone set up direct debits on, I managed to get both payments back and they were accounts I never really used anyway but both banks closed them stating I can't remember exact wording but I wasn't keeping my account matters in good standing. I know for one of them it was auto closed and bank admitted it was a sort of error i.e when I became overdrawn the systems autogenerated a letter asking for the amount back, and even though it was refunded the systems don't count that as a credit so as far as it was concerned I ignored the request to pay money in therefore I broke terms and account was closed.

AstonSmith

colsten said:

What does "taking AML and KYC regulations to the extreme" mean? 
Do you think banks should allow some AML? Should they ignore some of the KYC regulations they are legally obliged to comply with?

Couldn't any deposit potentially be laundered funds? Would it be acceptable if every single deposit caused an account to be frozen for weeks at a time? There must be a line somewhere.

Shakin_Steve

colsten said:

Shakin_Steve said:

I know and understand the AML and KYC regulations, but I personally think that some banks (Nat West are todays favourite) are taking this to the extreme. Fear of the regulator only goes so far in the explanation for this behaviour. I'm quite surprised that consumer champions, including MSE, are not asking questions.

What does "taking AML and KYC regulations to the extreme" mean? 

Do you think banks should allow some AML? Should they ignore some of the KYC regulations they are legally obliged to comply with?

Assuming you are legally qualified to assess the complaints, I am quite surprised that you are, seemingly, jumping to conclusions without having heard the responses from the bank. 

Yes, right, I hear what you're saying, colsten. But even you must admit, the level of accounts coming under scrutiny seems to be on the increase. I suppose, as was said earlier, the regulator could have given them a warning, but surely the resolution could be quicker when it becomes obvious that the customer has done nothing wrong?

eskbanker

Shakin_Steve said:
the level of accounts coming under scrutiny seems to be on the increase.

It's all very anecdotal though, rather than statistically significant, bearing in mind that NatWest has something like 8 million current accounts.  There was a spate of similar reports about Monzo a while back, and there are plenty of other banks cited in recent threads for this (Santander and HSBC spring to mind) - I was asking previously (can't remember which thread) if anyone has any actual facts about account closure volumes but don't recall anyone being able or willing to come up with anything, so perceptions will probably continue to fill that particular vacuum....

Carmen5

Tallaght said:

What kind of transactions was your son making ? Did he have a loan or overdraft with natwest ?

Nothing out of the ordinary. he received the loan for the university and that's it . No only they want to close his account. The day before of the letter he received another letter for a different account. And the letter from the "Closing Team" said they were closing both accounts (the real and the "ghost" one. We were talking with different people and no explanation...

Carmen5

Thrugelmir said:

Carmen5 said:

No explanation at all. A nightmare!

From your son? 

Thrugelmir said:

Carmen5 said:

No explanation at all. A nightmare!

From your son? 

No, from the bank. There was not abnormal activity, only he received the loan for the university (and they can see that)

Also they open a new account (without us asking for it) last week and now they said they are closing both accounts...

Thrugelmir

Carmen5 said:

Thrugelmir said:

Carmen5 said:

No explanation at all. A nightmare!

From your son? 

Thrugelmir said:

Carmen5 said:

No explanation at all. A nightmare!

From your son? 

No, from the bank. There was not abnormal activity, only he received the loan for the university (and they can see that)

Also they open a new account (without us asking for it) last week and now they said they are closing both accounts...

Banks don't suddenly open new accounts for no reason. 

Carmen5

Thrugelmir said:

Carmen5 said:

Thrugelmir said:

Carmen5 said:

No explanation at all. A nightmare!

From your son? 

Thrugelmir said:

Carmen5 said:

No explanation at all. A nightmare!

From your son? 

No, from the bank. There was not abnormal activity, only he received the loan for the university (and they can see that)

Also they open a new account (without us asking for it) last week and now they said they are closing both accounts...

Banks don't suddenly open new accounts for no reason. 

I know. We tried to open a new account, a year ago,and it was refuse, but we didn't tried anymore. Why now, from the bank, they opened it and closed without nobody asking for it. . I don't understand either

Penelopa.Pitstop

Maybe it wasn't bank but someone else trying to open account in your son's name?