Lloyds Group Closing My Bank Accounts

DPrentice2020

I realise it's a familiar tale on here but it's happening to me so thought I may as well log my example... I applied for a Lloyds Bank business bank account (sole trader, new business, online clothing retail) a few weeks ago. It was opened without any problems. I was sent a debit card and PIN. When I got it I went to change my PIN and the cashpoint retained my card. The following day I had a letter saying that on review they'd decided I wasn't eligible to open a business bank account with them and saying I should destroy the card etc. 
A week later I receive 3 identical texts, one from Halifax, one from Bank of Scotland, and one from Lloyds saying that after a review on my accounts a decision to close the accounts in 2 months has been made. I immediately checked my online banking and access had been suspended already.
I guess the business application combined with me shifting money between my accounts every month to meet interest criteria, etc. means they have seen a pattern which means they don't want my business any longer, which is of course their prerogative. I had current accounts with all 3 brands.
I have a credit card with Halifax, and that has a balance on it. It's going to be a pain if I have to pay that back in one go.

eskbanker

DPrentice2020 said:

I have a credit card with Halifax, and that has a balance on it. It's going to be a pain if I have to pay that back in one go.

I don't believe they can demand immediate full repayment of a credit card balance, even if they choose not to allow you to use the card for further purchases.

Hopefully you have at least one current account with a different banking group?

DPrentice2020

Yes I do have a current account elsewhere so can I use that. The text messages say they are writing to me so I'll see what the letters say. I hope this won't affect my credit file.

Ed-1

DPrentice2020 said:

Yes I do have a current account elsewhere so can I use that. The text messages say they are writing to me so I'll see what the letters say. I hope this won't affect my credit file.

Is it this text you've got?

If so, it's this letter you'll get:

DPrentice2020

Yes that's the text. Thanks for posting the letter. Do you know any more about why you received it?

Ed-1

DPrentice2020 said:

Yes that's the text. Thanks for posting the letter. Do you know any more about why you received it?

I didn't receive the text but I did receive the letter. It's when something about either your account activity or information held about you on credit files and fraud prevention agencies has highlighted concerns. Note that it doesn't prevent you from banking with Lloyds Group in future (that's a separate decision and letter).

The text is posted by another customer on Twitter here:
 https://mobile.twitter.com/entre_adam/status/964159906738724865

DPrentice2020

Thank you. Did you have any trouble opening a bank account with a different bank following this?

Edi81

Sounds like someone needs to tell them that dvla don’t issue paper counterparts anymore!

Ed-1

DPrentice2020 said:

Thank you. Did you have any trouble opening a bank account with a different bank following this?

No. Nor with LBG after a year.

GTR_King

Have you checked your credit file, and DSAR Check for CIFAS Marker,

Usually when banks close your accounts with 20/60 days notice they don't like how it's run e.g personal account for business, etc and they will let you get your money from branch or transfer to another account within 60 days, if you had dodgy Money (Not assuming you did) they would close account immediately or close it with 20/30 days but won't let you access your money, 

What clothing business did you try open? what account was you using for the business before the Lloyds Business account was opened? 

DPrentice2020

Selling clothes through ebay. I wasn't using another business account, it's a brand new business. I will check CIFAS.