Lloyds close my account without any reason, can I reopen the account after few years?

cymruchris

dkdhbo2 said:

And actually, I really like Lloyds...

dkdhbo2 said:
I am not sure about the reason .... maybe :

1. I changed my address and replace the card.
2. I transfer my salary to a saving account with another bank monthly.
3. I deposited the cash sometimes. (around £1000 per time)

You really like Lloyd's so much that you are now paying your salary into a different bank, and your monthly activity is mainly made up of withdrawing enough cash to pay back in to bypass the monthly account fee. It definitely appears as though it might be related to profitability. It costs them money to give cash out at an ATM - it costs them money for someone to count it back in as a deposit - they've likely looked at your activity and have sussed exactly what you're doing, and have decided to close an unprofitable account. (You mention the red packets - where's your home country out of interest? Malaysia?)

[Deleted User]

Yahoo_Mail said:

xlnc99 said:

Ed-1 said:

xlnc99 said:

eskbanker said:

xlnc99 said:

Too many people on this forum who have no idea what they are talking about and think they are experts talking about 'money laundering' when depositing 1k in cash or 'moving money' around to other accounts. 

Seriously? Why .... just why?

Gold help us

Obviously nobody on here knows why Lloyds are closing OP's account, so the only place OP could get that information would be Lloyds themselves, and they're unlikely to divulge anything in meaningful detail.

So, in the absence of knowing the definitive reason, people are offering suggestions as to what may have triggered this - inevitably this entails a certain degree of speculation (some informed, some less so) but the only realistic alternative would be to say to OP 'nobody on here knows, ask the bank'.  Granted, OP didn't actually ask why their account was closed but the subject of the (un)likelihood of future business is clearly entwined with the root cause, and there's obviously little point in OP moving to another bank and repeating the same pattern of activity, only to encounter the same response.

However, the words 'money laundering' are often emotive, in that many, perhaps including yourself, don't seem to appreciate the difference between acting in such a way as to trigger checks put in place to satisfy anti money laundering legislation versus actually being accused of money-laundering....

Why do you believe OP is having their account closed?

Whenever one of these famous threads come on the forum (i am talking about the 'bank has closed down account thread' and as sure as night and day these threads will forever come on here until the end of time) - the first responses people give us 'money laundering'. Its just laughable really. Most (not all) dont have a clue what it is, but seem to be experts on money laundering.

I have no idea why the bank have shut his account but my based on the OP points money laundering would not be on the top list. 1k cash deposits wont trigger anything. Moving money from accounts to accounts - everyone does it. Furthermore, the bank gave 65 days to close the account which is over 2 months. If it was something serious or something illegal then he would not be given 65 days - u should know this, you come across quite smart.

We should also bear in the mind the OP most likely hasnt told us the full details (no blame on him), maybe due to shame or personal reasons. Rarely you see people come on here and admit everything to a tee. 

My only guess is, it could be something to do with him being an international student and quite possibly brexit. The date of closure 2 months is exactly Jan 1 2021 - (i maybe wrong but isnt there some new rules from Jan 2021)???? Again this is pure speculation. For the bank to give 65 days notice and also say to the customer 'we will not accept your applications in the future' leads me to believe that he did not get 65 days notice, and more like 7 days notice but hasnt told us the full story. Most likely did something wrong, fraud, scam etc. He just told us 65 days to paint a picture of himself not looking dodgy. 

It does not make sense for the OP to do something very wrong for the bank to say will not accept you in the future then give them a further 2 months of access to the bank account. 7 days would be most.

Thus will be the letter OP got:

Natwest also ban you from future applications even if they give 60 days notice of closure.

This does have logic: If they're making a commercial decision to reject your business based on your history with them, why would they accept it in future?

4 - Something to do with his international status and brexit rule change from Jan 2021.

You need to drop this one, even the briefest Google search will show that the only accounts being closed are those of people who currently reside in the EU (this includes UK nationals too.)  The OP's nationality is not relevant here, it's where they live that matters. Since that is the UK (at least for the time being) his account won't be closed due to the UK potentially losing passporting rights.

Not sure where a potential loss comes in?
The only non-EU countries that have it are EEA members - so exclude those with 'a deal' like Switzerland or Canada.

ratechaser

Thrugelmir said:

ratechaser said:

dunstonh said:

jonesMUFCforever said:

dunstonh said:

Banks will also periodically look at unprofitable accounts.   Salary in and almost immediately paid out to another bank is one of the types they target.   Its not always about activity in a suspicious way but in a commercial way.

I have to admit it is very rare for me to disagree with you - your posts are always spot on - but in this case I have to.
Accounts as you suggest above may not be profitable per se but give the bank marketing leverage that they would not have if they were not a customer for such things as mortgages, Home insurance, Life insurance, Pensions, Loans , Credit cards etc etc.
If you believe HSBC from their figures last week when they were suggesting that they MAY charge for current accounts in the future - then most current accounts are unprofitable for a bank.

I admit my direct banking knowledge is weakened by the number of years I have been out of banking but back in my day we would periodically close unprofitable accounts.   
Marketing leverage was also considered.  There was a profitability marker for each account which took product purchases into account. It included insurance, investments, pensions, credit card etc.     Only accounts with no "products" purchased and sufficient history with the bank to have at least given that a possibility would be considered.    
Nearly always it is the money in from payroll one day and money out the next style account with no real transactions in between.

With the banks suffering an all time low net-interest margin, profitability is back in the news, as you say.  So a haircut of the least profitable accounts with little or no marketing potential would not be a surprise.

So whatever premier/select status they like to pretend we have with them, we must be high up on their unprofitable hit list! 

Doubt that customers like you are an immediate priority. 

Who knows... in this environment I wonder if at some point they will work out how much we have cost them over the years and decide it's not worth it any more. 

That's why I let their 'relationship managers' call every so often to review the accounts - keep them hoping that one day they might sell me something. Poor deluded fools 

phillw

dkdhbo2 said:
But I only transfer the money within the accounts under my name. Actually, I do not regularly deposit cash as I need to withdraw the money from ATM and deposit it (just to save the transaction fee...). But almost every month.

"Banks software is very very good at spotting abnormal behaviour of accounts these days " ... what happens these days?

Almost every month is regular. Are you withdrawing the cash from the same machine?
They may have thought you were using a private account as a business account.
If you were withdrawing cash from their machine, depositing it again and then transferring it elsewhere straight away, then it's costing them money for no real gain.

Bedetti

Same happened to me.
I came to the UK with Spouse Visa through the saving route on April 2022. You have to prove you have money in your home country before you come. So that´s what I did.
When I opened my account with Lloyds I still didn´t have a job offer, so it was 2 months with no income into this account, this is not an old account!!! And besides that, I transferred part of the money into LLoyds and then transferred it to a savings account I have in the UK. ( I was stupid, I should have transferred directly to the savings account).
Lloyds will close my account in 65 days because they didn´t like I transferred the money to my other savings account and they don´t know where this money comes from.
Now I don´t know what to do with my money from my home country. I´m afraid of transferring it to another bank and they´ll think I´m laundering my own money. The Home Office asked me to prove I had the money for the visa, and now I can´t get my money into a UK bank account without raising concerns.
Any advice? I´m afraid if the savings account will close my account too.. I transferred half of the money into the savings account! How often should I make my transfers? This is so awkward! 

born_again

Bedetti said:

Same happened to me.
I came to the UK with Spouse Visa through the saving route on April 2022. You have to prove you have money in your home country before you come. So that´s what I did.
When I opened my account with Lloyds I still didn´t have a job offer, so it was 2 months with no income into this account, this is not an old account!!! And besides that, I transferred part of the money into LLoyds and then transferred it to a savings account I have in the UK. ( I was stupid, I should have transferred directly to the savings account).
Lloyds will close my account in 65 days because they didn´t like I transferred the money to my other savings account and they don´t know where this money comes from.
Now I don´t know what to do with my money from my home country. I´m afraid of transferring it to another bank and they´ll think I´m laundering my own money. The Home Office asked me to prove I had the money for the visa, and now I can´t get my money into a UK bank account without raising concerns.
Any advice? I´m afraid if the savings account will close my account too.. I transferred half of the money into the savings account! How often should I make my transfers? This is so awkward! 

If they gave you 65 days. Then, it is nothing to do with transfering the money. That would have resulted in a "Your account is now closed"
Sounds like they have run further chackes & do not want you as a customer due to not meeting their criteria.

DE_612183

Bedetti said:

Same happened to me.
I came to the UK with Spouse Visa through the saving route on April 2022. You have to prove you have money in your home country before you come. So that´s what I did.
When I opened my account with Lloyds I still didn´t have a job offer, so it was 2 months with no income into this account, this is not an old account!!! And besides that, I transferred part of the money into LLoyds and then transferred it to a savings account I have in the UK. ( I was stupid, I should have transferred directly to the savings account).
Lloyds will close my account in 65 days because they didn´t like I transferred the money to my other savings account and they don´t know where this money comes from.
Now I don´t know what to do with my money from my home country. I´m afraid of transferring it to another bank and they´ll think I´m laundering my own money. The Home Office asked me to prove I had the money for the visa, and now I can´t get my money into a UK bank account without raising concerns.
Any advice? I´m afraid if the savings account will close my account too.. I transferred half of the money into the savings account! How often should I make my transfers? This is so awkward! 

which country did you come from?