Bank account closed, nowhere to go.

xlnc99

born_again said:

sheramber said:

I am surprised  that a bank will  freeze all accounts  on the say so of a third party without any investigation.
That leaves the way for anybody with a grudge to make a false accusation with serious  consequences.
  

Do you honestly believe what you have posted?
It might surprise you, but a lot of work will have gone into the investigation and making the decision to close the account. The account holder will have been contacted and given their chance to defend themselves. Sounds like they shot themselves in the foot by saying that they had been selling puppies over the last couple of years.

As to banks not caring about a personal account being run as a business, xlnc99 is so wrong, but then again they do not work in banking so have little idea of what goes on.

Firstly let me say that Sheramber is correct. The fact is it all depends on the bank and which person is dealing with the situation at the time. I know this because 
1 - i work in finance and deal with banks
2 - my family has a business in the financial industry and deal with banks daily
3 - i have personally been involved in similar situations to the above

To give a brief overview, just like the OP i was twice at different times involved in similar scams. Sold some items, all paid by bank transfer then delivered the items then the buyer phoned bank to say i 'stole' money'. Bank A - no warning to me, shut my account. Did not give me a chance to proove my innocence. Did not even hear my side of the story and placed a CIFAS marker on me. Infact, i had no idea i had a CIFAS marker until 2 years later! Needless to say i contacted them and resolved this ASAP with all my evidence and was furious with them. Removed the marker and gave me compensation, think it was about 100 pound or somehing. Couldnt bother take it further or argue it, just glad marker was off.

Bank B - same thing but this time they called me and asked me for my version of events. They were actually very professional and deal with it very good. Showed evidence etc and within a few days everything resolved, account unblocked. So as you can see, it all depends in circumstances and luck really. Banks can really get away with anything, and they need to be held accountable. That's another story for another day.

As for the comment about business and personal you are incorrect but let me clarify. Legally you can use a personal account for business. That is the law and the fact that you work in the banking industry and do not even though this, is quite frankly ridiculous and concerning.

xlnc99

To clarify - This is for sole traders and self employed and not limited companies. For limited companies i am not 100% sure that is is 'illegal' to have a business bank account but most certainly its advised too have one.

TomBo91

born_again said:

sheramber said:

I am surprised  that a bank will  freeze all accounts  on the say so of a third party without any investigation.
That leaves the way for anybody with a grudge to make a false accusation with serious  consequences.
  

Do you honestly believe what you have posted?
It might surprise you, but a lot of work will have gone into the investigation and making the decision to close the account. The account holder will have been contacted and given their chance to defend themselves. Sounds like they shot themselves in the foot by saying that they had been selling puppies over the last couple of years.

As to banks not caring about a personal account being run as a business, xlnc99 is so wrong, but then again they do not work in banking so have little idea of what goes on.

Just to clarify, she has not been contacted by the bank or given a chance to defend herself. She attempted to speak with Barclays numerous times following her account freeze, but was told that nobody could assist her, and that she would receive a final decision in writing.

born_again

xlnc99 said:

As for the comment about business and personal you are incorrect but let me clarify. Legally you can use a personal account for business. That is the law and the fact that you work in the banking industry and do not even though this, is quite frankly ridiculous and concerning.

If it is in breech of the banks T/C then they can close the account.
If a bank only offers personal accounts and finds a customer using it as a business account. They can and will shut it. That is our banks stance. 

colsten

xlnc99 said:

As for the comment about business and personal you are incorrect but let me clarify. Legally you can use a personal account for business. That is the law and the fact that you work in the banking industry and do not even though this, is quite frankly ridiculous and concerning.

Have you got a link to that law, please?

How does this law relate to the fact that the personal current account  T&Cs of all providers state that the account is for personal use only? Are they all breaking the law?

xlnc99

born_again said:

xlnc99 said:

As for the comment about business and personal you are incorrect but let me clarify. Legally you can use a personal account for business. That is the law and the fact that you work in the banking industry and do not even though this, is quite frankly ridiculous and concerning.

If it is in breech of the banks T/C then they can close the account.
If a bank only offers personal accounts and finds a customer using it as a business account. They can and will shut it. That is our banks stance. 

I am not sure how many banks have this in their terms and conditions - but i suspect it may be most of not all of them. It literally means nothing and they have to put it in to cover themselves and because they are encouraging people to use business accounts for their own self interest. They will unlikely shut a personal account for business use. Infact, on Barclays website link - a few things to point out.

https://www.barclays.co.uk/business-banking/business-insight/do-i-need-a-business-bank-account/

1 - They have even stated on that page that 3 quarters of self employed in the UK use their personal accounts for their business transactions
2 -  The first line they are encouraging people saying 'if you use a personal bank account for business' then switch to our business account to help simply etc etc
3 - Finally at the end they say 'using a personal account for business is a breach of our terms and we 'could' close your account

You will notice that Barclays have worded their phrases carefully in encouraging people to use business accounts for personal accounts instead of making it a demand. That is because they are not allowed too. Even that end they are saying 'we may' close your account - not that we will close your account if we find out you are using it as a business account. Bottom line - its a grey area.

Every bank knows alot of the UK use personal accounts for business and on the fact of it, its widely accepted. Banks encourage people to use business accounts for a few reasons including making more money but the main reason because there are regulations in place in which banks cannot use personal account money, but they can use business account money. This is a whole different story and not something to get into now.

Fact is terms and conditions are not 'law' per sea and as i said it is not illegal. Their terms and conditions dont really mean much and are there only to protect the bank. I mean everyone here has at some point broken terms and conditions. You have never let someone borrow your card? Family member? Never taken cash out for someone on their card? Never helped your family with online banking? 

I for one have broken several terms and conditions and the bank know it. Numerous times ive helpd my parents with their banking including using their online facility on their behalf, using their bank cards, taking money out etc etc. Even when speaking to the bank on the phone on their behalf they fully well know this as i openly tell them (as i have had to in situations) but they dont care as long as i got permission to do so. 

xlnc99

colsten said:

xlnc99 said:

As for the comment about business and personal you are incorrect but let me clarify. Legally you can use a personal account for business. That is the law and the fact that you work in the banking industry and do not even though this, is quite frankly ridiculous and concerning.

Have you got a link to that law, please?

How does this law relate to the fact that the personal current account  T&Cs of all providers state that the account is for personal use only? Are they all breaking the law?

Read my post above - it explains everything

xlnc99

Also - i have not checked this recently but the last time i checked HSBC terms and conditions it was

'The product/service you have with use 'should' not be used for business purposes'

That is a not a definite answer in my eyes. It does not state that you 'cannnot' use it for business purposes. It is basically saying its recommended not to.

Shakin_Steve

You're really clutching at straws here while, at the same time, accusing other people of not knowing what they're talking about. Some of these people actually work in the banking sector and definitely do know what they're talking about. 

There is no 'law'. You have quoted the somewhat vague T&C's from a banks website, but these are of no help to people who've actually had their personal accounts closed for putting business through them. In the case of the OP, the account probably wasn't closed for this reason, but I wouldn't like to try using my personal account for business and showing the bank the snippets you posted in my defence.

xlnc99

if you had been involved in the finance sector as long as me and seen the things ive seen - you would understand what i mean. The terms and conditions dont mean much. Just there to cover the bank, plenty of them are broken daily and the banks know it. They will not shut down everyone's accounts, they cant afford too. That being said - these are minor points and not major things of absuing bank accounts i.e fraud, scams etc.