NatWest closing my 2 Reward accounts out of the blue

Alex9384

I've never expected to be one of those "bank is closing my account" people, but 'good old NatWest' just did it to me.
Unlike many others here, my accounts haven't been frozen or anything. I just received an account closure notice letter.

So what happened?
I opened (switched to it) my first current account with NatWest in 2018 (Select account, later upgraded to Reward), with small overdraft of £500 (though I was offered £2200). NatWest have been offering me overdraft increases ever since, with offers fluctuating anywhere between £3000 and £6000 "based on my account activity".

Opened my second Reward account on the 1st March 2021, was offered an OD of £2000 which I accepted.
On the same day, I decided to increase my OD limit on the old account as well. After the credit check they offered £2750 and I chose £2600.

After some additional checks, the second current account was fully set up and running on the 2nd March.


10th March - received a letter dated 3rd March saying: Notice of account closure


"We have recently undertaken a review of your banking arrangements with us and reached the conclusion that we will no longer provide these facilities. This decision is in accordance with the General Terms and Conditions of your account and we are giving you 60 days' notice before we close your account(s)".

So why did they approve and open my account one day after the application (doing some checks) and then decided to close both accounts the next day? Does it makes sense?
I really have no idea what "triggered them". I have a standing order set up each month for £2500 in and three days later £2250 out, leaving in some money for my 3 direct debits (Nationwide CC, Barclaycard, new Amex CC, occasionally topping up PayPal by direct debit). I transferred some more money in manually as the new Amex direct debits used to be £800-£900 per month. Once in January I sent £40 from PayPal back to my NatWest but this is unlikely to cause anything as it was my own money, not received from anyone else, and my accounts are not frozen, so obviously not an AML matter.
From time to time I used their debit card for some small purchases just to have some activity on it, and cashback at Costa coffee, plus topping up my Revolut, rarely small ATM withdrawals of £20 or so per month. No gambling transactions or anything like that ever. I also used to transfer my money in or out from/to my current accounts with other banks, once or twice a month (usually somewhere between £100 and £1000). That shouldn't be a problem either. So I really have no idea what they don't like about me. What makes me an 'undesirable customer'?


Anyway, what are my best options now?
Should I first downgrade both accounts from Reward to Select in order to avoid fees in the last month?
I won't be able to earn more rewards, I think it takes over 30 days to go through.

Should I close (switch) both accounts on different dates?
Since other lenders can't see on my credit files that both accounts are from the same bank, I don't want it to look like two different banks closed my accounts at the same time. So perhaps close the old account ASAP and keep the new account till 30th April or so?

I'm now thinking about switching to HSBC for £125. Not sure about the second account.. Not many switching options available right now.

jay1804

Alex9384 said:

I've never expected to be one of those "bank is closing my account" people, but 'good old NatWest' just did it to me.
Unlike many others here, my accounts haven't been frozen or anything. I just received an account closure notice letter.

So what happened?
I opened (switched to it) my first current account with NatWest in 2018 (Select account, later upgraded to Reward), with small overdraft of £500 (though I was offered £2200). NatWest have been offering me overdraft increases ever since, with offers fluctuating anywhere between £3000 and £6000 "based on my account activity".

Opened my second Reward account on the 1st March 2021, was offered an OD of £2000 which I accepted.
On the same day, I decided to increase my OD limit on the old account as well. After the credit check they offered £2750 and I chose £2600.

After some additional checks, the second current account was fully set up and running on the 2nd March.


10th March - received a letter dated 3rd March saying: Notice of account closure


"We have recently undertaken a review of your banking arrangements with us and reached the conclusion that we will no longer provide these facilities. This decision is in accordance with the General Terms and Conditions of your account and we are giving you 60 days' notice before we close your account(s)".

So why did they approve and open my account one day after the application (doing some checks) and then decided to close both accounts the next day? Does it makes sense?
I really have no idea what "triggered them". I have a standing order set up each month for £2500 in and three days later £2250 out, leaving in some money for my 3 direct debits (Nationwide CC, Barclaycard, new Amex CC, occasionally topping up PayPal by direct debit). I transferred some more money in manually as the new Amex direct debits used to be £800-£900 per month. Once in January I sent £40 from PayPal back to my NatWest but this is unlikely to cause anything as it was my own money, not received from anyone else, and my accounts are not frozen, so obviously not an AML matter.
From time to time I used their debit card for some small purchases just to have some activity on it, and cashback at Costa coffee, plus topping up my Revolut, rarely small ATM withdrawals of £20 or so per month. No gambling transactions or anything like that ever. I also used to transfer my money in or out from/to my current accounts with other banks, once or twice a month (usually somewhere between £100 and £1000). That shouldn't be a problem either. So I really have no idea what they don't like about me. What makes me an 'undesirable customer'?


Anyway, what are my best options now?
Should I first downgrade both accounts from Reward to Select in order to avoid fees in the last month?
I won't be able to earn more rewards, I think it takes over 30 days to go through.

Should I close (switch) both accounts on different dates?
Since other lenders can't see on my credit files that both accounts are from the same bank, I don't want it to look like two different banks closed my accounts at the same time. So perhaps close the old account ASAP and keep the new account till 30th April or so?

I'm now thinking about switching to HSBC for £125. Not sure about the second account.. Not many switching options available right now.

It's probably because you took out two overdrafts on the same day

PRAISETHESUN

Were the two Reward accounts in your sole name? It's possible that is what triggered it since you're only supposed to be able to hold one sole name, the second is supposedly to be joint. Outside of that it could be the OD - I recall seeing a thread a while back where someone opened multiple NW select accounts each with an OD and eventually they all got closed due to "misusing the OD facility" or something to that effect, even though all they were doing was accepting what was offered to them. You won't change their mind so all you can do is figure out where to go from here. I don't think it matters if you or NW close them on different days or not. Lenders will still see that two accounts are being closed and interpret that however they will. Not many offers available unfortunately, so I'd definitely jump on the HSBC/FD/Virgin offers if they appeal to you.

soulsaver

Have you checked you've still got online facilities and can still make withdrawals? 

Alex9384

If it's for 2 ODs, then why did they approve it and offered it in the first place.

If it's for 2 Reward accounts, again, they approved it, first their automated system, later even their manual review.

They were doing checks for more than 24 hours and decided everything was fine, only then I received the welcoming email.

Then, another 24 hours later and suddenly it wasn't OK anymore and they changed their mind.

In a way I'm happy I'm leaving this pompous dinosaur and won't have to deal with their backward legacy systems anymore, but I'd still like to know why they changed their mind.

Alex9384

soulsaver said:

Have you checked you've still got online facilities and can still make withdrawals? 

Yes, I sent out 2x £1000 to my two Halifax accounts. Funny that I chose future dated payments for 11 March, yet NatWest sent it out immediately on 10th March as their legacy systems are unable to set up a payment for tomorrow if you do it in the afternoon on the previous day. You also can't cancel standing order or manual future dated payment today (no sure what the cut out time is) if they are supposed to go out tomorrow. It works with all other banks I have, just not with NatWest.

jimjames

If you have an overdraft and pay in money and immediately remove almost the same amount I guess they're seeing it as not consistent with the use of an account as a main account with that fairly substantial facility. Seems odd that they'd approve a new account but maybe the new one triggered the review process. Is there a reason for having the overdraft so big, it's not exactly a cheap way to borrow?

Presumably unlike many other posters here you actually have multiple other bank accounts you can use?

Switch to Virgin for the wine? I'd definitely downgrade asap to cut that cost.

General_Grant

Alex9384 said:

. . .

In a way I'm happy I'm leaving this pompous dinosaur and won't have to deal with their backward legacy systems anymore, . . .

The branch staff judge you by superficial appearances. 

Before lockdown I was interested in their Reward Black CC.  I went into a branch in another city which I was visiting - meeting auditors as I am the treasurer of a charity there and the building was on my walking route from the station. 

I was talked down to and it was suggested that this (and the Black Reward current account) was for "professional people like solicitors and accountants", the implication being that someone aged 70 and wearing clothes suitable for travelling on public transport could not possibly fall into this category.

colsten

Alex9384 said:

 I'd still like to know why they changed their mind.

I don't think there's any way you could ever find out. We can all speculate but nobody can know for sure, and Natwest won't tell you.

Your credit file will show that the accounts were closed but it will not show who closed them or why. No reason to stress about the credit file, and no reason for not switching both accounts on  the same day.

Alex9384

jimjames said:

If you have an overdraft and pay in money and immediately remove almost the same amount I guess they're seeing it as not consistent with the use of an account as a main account with that fairly substantial facility. Seems odd that they'd approve a new account but maybe the new one triggered the review process. Is there a reason for having the overdraft so big, it's not exactly a cheap way to borrow?

Presumably unlike many other posters here you actually have multiple other bank accounts you can use?

Switch to Virgin for the wine? I'd definitely downgrade asap to cut that cost.

I never use OD, I just want to have it. I believe it looks better on my credit files as it shows that my banks trust me. Well, except NatWest.   I also regularly increase limits on my credit cards for the same reason, whenever I'm eligible for the increase.

Btw, this overdraft is big? I thought it's a common thing to have an OD of 2k to 3k.

Yes, luckily I have more than ten current accounts so not really an issue. Maybe I'll try Virgin.
I assume I can't get the bonus from HSBC and also First Direct as FD is a division of HSBC. I think it was possible in the past but not anymore?

Alex9384

colsten said:

I don't think there's any way you could ever find out. We can all speculate but nobody can know for sure, and Natwest won't tell you.

Your credit file will show that the accounts were closed but it will not show who closed them or why. No reason to stress about the credit file, and no reason for not switching both accounts on  the same day.

Isn't it stupid that instead of telling you they don't like something, they just close your accounts?

This is why we should never allow a cashless society. Being completely at the mercy of bankers is a terrible thing.

So it seems like I should start switching to HSBC. Their account opening process can take weeks. Who knows, maybe I'll find out I'm not even eligible.