Large cash withdrawals from Nationwide...

born_again

profile/Deleted User said:

How he pays his staff is your business. You are tacitly aiding tax evasion, which in the end has to be subsidised by the tax payer.

Which by default also becomes the banks issue if it gets investigated.
A builder wanting 10K cash to pay contractors & materials is pretty suspect. Clearly it will not be going through the books of any party.  Remember it gives you less protection if he does a runner.

Socajam

born_again said:

profile/Deleted User said:

How he pays his staff is your business. You are tacitly aiding tax evasion, which in the end has to be subsidised by the tax payer.

Which by default also becomes the banks issue if it gets investigated.
A builder wanting 10K cash to pay contractors & materials is pretty suspect. Clearly it will not be going through the books of any party.  Remember it gives you less protection if he does a runner.

That would be the OP's next post on here
I withdrew 10K from Nationwide in cash to pay my builder for work,  NW did not stop and ask me any questions. Now the builder have run off with my money, can I claim compensation from Nationwide for not warning me of the consequences of such a large withdraw?

jonesMUFCforever

Message to the OP - if you really push this then they could call the police to interview you. All banks are now members of a scheme whereby to prevent scammers, they dial 999.
You could ask your builders to accept a transfer of monies direct to their account - nothing stopping them going to their bank to withdraw it?

Thrugelmir

You are paying your builder £10k but he hasn't provided an invoice to substantiate what he's charging you for. I'd run a mile. Sounds a cowboy. 

Shakin_Steve

SP87 said:

Hi - we are having building work done on our house, and the builder asked for cash, so he can pay his contractors and also for materials at the yard.  This isn't a problem for us - he's delivering a service which we're happy with and how he pays his staff etc is none of our business.

BUT - we've now found out that getting OUR money out of the bank is really difficult. We have asked to withdraw £10k and have been told we need proof of purchase/invoices etc to be able to withdraw anything over £2k. 

Don't get me wrong, I understand that they are trying to safeguard, and protect against money laundering and tax evasion (not their job), but ultimately my money is my money and it feels like I'm being held at ransom. It's none of their business what I choose to do with it, and it's even got to the stage where I've said I'll just close the account and have the money all in cash, and again they've said no.  

Question - I can't find a law anywhere that states you have to show proof of purchase in order to withdraw cash over a certain amount. I also can't find any bank policy which says so...

Frustrated to say the least, and even less confidence in the banking system than before. 

Any advice/help much appreciated. 

I want you to imagine that you are not having building work done and there is no builder asking you for ten grand. Then you hear about someone, perhaps a friend or relative, who is going to give some builder ten grand in cash on the promise of future work to be carried out. Ten grand to pay staff they've never seen and to buy building materials.
You'd be round like a shot to try and stop them.

And, yes, it is annoying that the bank won't let you have your own cash, but they are bound by law to protect both you and themselves.

EssexExile

jonesMUFCforever said:

Message to the OP - if you really push this then they could call the police to interview you. All banks are now members of a scheme whereby to prevent scammers, they dial 999.
You could ask your builders to accept a transfer of monies direct to their account - nothing stopping them going to their bank to withdraw it?

Except the same thing that is stopping the OP withdrawing it!

jonesMUFCforever

EssexExile said:

jonesMUFCforever said:

Message to the OP - if you really push this then they could call the police to interview you. All banks are now members of a scheme whereby to prevent scammers, they dial 999.
You could ask your builders to accept a transfer of monies direct to their account - nothing stopping them going to their bank to withdraw it?

Except the same thing that is stopping the OP withdrawing it!

Builders have accounts with builders merchants, builders have credit and debit cards with their accounts, builders have access to faster payment system with internet banking - so in reality there is no need to get the cash BUT of course this way everything goes through the books and they pay the appropriate tax and VAT.
It would be up to the builder to convince his/her bank what the money is for. It may be that if they hold a business account a withdrawal of that amount would not create such  a kerfuffle.

[Deleted User]

jonesMUFCforever said:

Message to the OP - if you really push this then they could call the police to interview you. All banks are now members of a scheme whereby to prevent scammers, they dial 999.
You could ask your builders to accept a transfer of monies direct to their account - nothing stopping them going to their bank to withdraw it?

No they aren't and there is no such scheme! Or are you just winding up the OP?

Eco_Miser

camelot1971 said:

jonesMUFCforever said:

Message to the OP - if you really push this then they could call the police to interview you. All banks are now members of a scheme whereby to prevent scammers, they dial 999.
You could ask your builders to accept a transfer of monies direct to their account - nothing stopping them going to their bank to withdraw it?

No they aren't and there is no such scheme! Or are you just winding up the OP?

More likely they call 101 or an appropriate direct line, but banks certainly do call the police when they suspect a scam is in progress, for the protection of the scammee.

born_again

Mickey666 said:

Thrugelmir said:

You are paying your builder £10k but he hasn't provided an invoice to substantiate what he's charging you for. I'd run a mile. Sounds a cowboy. 

I think you're imagining things.  The OP hasn't said there is no invoice, they said the Nationwide wanted to see the invoice.  I would assume the OP didn't take it with them - and why would they?  I wouldn't.

Also, handing over £10k in cash is precisely zero risk if the builder has already done £10k's worth of building work, so let's not jump too far ahead of ourselves.

I have every sympathy with the OP, but we all have to accept that our increasingly litigious society and the decline of personal responsibility (ie who can I blame for my misfortune?) has repercussions - and this is just one example.  We all end up paying in the end, whether financially through higher insurance premiums or through inconveniences such as this example.

Modern life eh?

Except the Op has not said one way or the other.
Either way. Wanting £10K CASH to pay people & goods just screams Tax avoidance. 
If the builder was going to be legit and pay it into their bank account. Their bank would want to know source of funds.