TSB CLOSNG MY CLIENT ACCOUNTS ON 31 JANUARY 2021

Homes4let

Good morning, I received yesterday from TSB advising they are closing all my client accounts I have with them on 31 January 2021. I have raised this as a complaint but also with my MP, local councillors, Chamber of Commerce and Scottish Government as it's a legal requirement for me to have these accounts for my Letting Agency. I'm unable to get new accounts set up and ensure all our tenants pay rents into new accounts in the timescales they've given me.  Are they allowed to do this as they state in the letter they are legally obliged to give me 2 months notice.  I stuck by them when they had the IT changeover fiasco a couple of years ago and now they are doing this to my business.  When I called them their message is SUPPORTING CUSTOMERS IS OUR PRIORITY.  I certainly don't feel supported especially when they tell me it can take up to 8 weeks to investigate my complaint.  Any advice / assistance is greatly appreciate as this has a huge impact on my business especially facing all the other challenges during this pandemic.  THANK YOU Diane 

SaverRate

Homes4let said:

Good morning, I received yesterday from TSB advising they are closing all my client accounts I have with them on 31 January 2021. I have raised this as a complaint but also with my MP, local councillors, Chamber of Commerce and Scottish Government as it's a legal requirement for me to have these accounts for my Letting Agency. I'm unable to get new accounts set up and ensure all our tenants pay rents into new accounts in the timescales they've given me.  Are they allowed to do this as they state in the letter they are legally obliged to give me 2 months notice.  I stuck by them when they had the IT changeover fiasco a couple of years ago and now they are doing this to my business.  When I called them their message is SUPPORTING CUSTOMERS IS OUR PRIORITY.  I certainly don't feel supported especially when they tell me it can take up to 8 weeks to investigate my complaint.  Any advice / assistance is greatly appreciate as this has a huge impact on my business especially facing all the other challenges during this pandemic.  THANK YOU Diane 

If the terms and conditions you agreed to state 2 months notice then they can do what they want aslong as they give you the required notice. 

eskbanker

Homes4let said:

I have raised this as a complaint but also with my MP, local councillors, Chamber of Commerce and Scottish Government as it's a legal requirement for me to have these accounts for my Letting Agency.

It's generally advised to use business accounts for business purposes but isn't strictly a legal requirement to the best of my knowledge, and even if there's a legal requirement for you to use such accounts, it's not a legal requirement for TSB to provide them to you if they choose not to, so you'd be better focusing on sorting new accounts rather than trying to challenge TSB's decision.

Homes4let said:

I'm unable to get new accounts set up and ensure all our tenants pay rents into new accounts in the timescales they've given me. 

The closure date is over three months away!  Anecdotally it is quite challenging opening new business accounts just now with many players, but if you get new accounts set up then you can use the Current Account Switching Service to allow all payments into the old accounts to be redirected to one or more new ones automatically.

PRAISETHESUN

Are they allowed to? Yes - they've given you the required 2+ months notice.

What can you do about it? Focus your energy on getting a new account opened elsewhere, as it's quite unlikely TSB will budge on their decision. They have no obligation to offer you an account if they don't want to. You need to let the complaints procedure run it's course, which will take time in the current climate and may not be sorted by your deadline.

mjm3346

What do you expect given their track record of appalling service? You have over 3 months notice to sort out accounts elsewhere and there is no reason for TSB to be required to keep you as a customer.  Even if they did allow you to stay I'd be looking to move accounts ASAP anyway.

colsten

It appears you are using a personal account for business purposes? If so, this is in breach of the TSB T&Cs that you agreed to when you applied for the account.

Best to get yourself a business account a.s.a.p. and advise your clients of your changed bank details.

dunstonh

 I received yesterday from TSB advising they are closing all my client accounts I have with them on 31 January 2021.

Before I start, you should edit your cost to remove that horrible font you used.  It is harder to read on some screens and will put some people off....

The term "client accounts" has a specific meaning.  When you operate client accounts, you have to meet certain standards.  Are you really operating client accounts or is that just a mismatch in terminology?

I certainly don't feel supported especially when they tell me it can take up to 8 weeks to investigate my complaint. 

They are required to tell you 8 weeks as that is a regulatory requirement. 

Any advice / assistance is greatly appreciate as this has a huge impact on my business especially facing all the other challenges during this pandemic.

Banks don't just close accounts for no reason.  So, what are the reasons?

i.e. have you been using personal accounts instead of business accounts?  Have you had transactions that look suspicious?   have your accounts been managed poorly by you at some stage?

Robin9

Going by your sign on @Homes4let - are you a landlord?   

And are connected to a similar firm in Dorset (a quick Google search) ?

Herbalus

If these are client deposit accounts that various professions have to have alongside their business accounts (eg a solicitor needs a client account so that client monies for say a house purchase is kept separate from normal business funds), then it may be a policy decision. I know a number of banks no longer accept client accounts outside of specific circumstances.

I don’t know the law in Scotland so that tempers my thoughts that I feel it’s unlikely for a lettings agent (I wonder if that’s what you are?) to be required to hold client deposit accounts.

I know Barclays at one point were still offering client accounts recently so that is an Avenue for you to explore.

I agree it’s very unlikely for tsb to overturn their decision.

Chino

Robin9 said:

Going by your sign on @Homes4let - are you a landlord?

The OP runs a lettings agency:

Homes4let said:

it's a legal requirement for me to have these accounts for my Letting Agency.

bundoran

Robin9 said:

Going by your sign on @Homes4let - are you a landlord?   

And are connected to a similar firm in Dorset (a quick Google search) ?

Seeing that in the opening post she says she's complained to the Scottish Government I'd take a wild guess that she's not in Dorset.  🙄