Can't close dormant account - Lloyds keeping money

eskbanker

LizzyLarner said:

eskbanker said:

LizzyLarner said:

We wanted to close the accounts but were told that we would have to go to a Lloyds Bank some distance away which wasn't possible. We have continued telephoning and writing to no avail and the accounts are now 'dormant'.

Their online help includes:

How do I close a savings account or any other account?

Some savings accounts can be closed online. For details of which accounts you can close online and how to close them, view our step-by-step guide.

If your account can’t be closed online, most savings accounts can be closed in branch, by calling us, or by writing to us at Lloyds Bank plc, BX1 1LT. However, some products are subject to early closure charges and others do not permit early closure. See your account conditions to find out more.

When you call or write, are they point blank refusing to close the accounts and release the funds, or are they simply looking to verify your identity in branch because you haven't dealt with them for a long time?  If the latter, that's more understandable but still seems a harsh interpretation of the rules and there should be some way round it, even if it takes a formal complaint to achieve this.

I think it is to verify who we are but our details haven't changed. We still live at the same address, have the same emails and phone numbers etc. They could close it by cheque and post it to us but they point blank refuse to. If we can't go in, we can't close it.

Despite not having changed postal or email addresses, or phone numbers, it's not uncommon for banks to insist on revalidating such details, especially if it's a long time since you formally dealt with them (perhaps back to when ID verification wasn't so stringent) - it's one thing for them to send out generic letters but access to money will (rightly) involve a higher level of proof.

If their policy is that access is only possible if you turn up in branch, despite mobility-related issues, then it could be deemed unfair or even unlawful (under equality legislation) so if they refuse even to accept posted ID proof, for example, then you might wish to escalate your complaint to the Financial Ombudsman Service if Lloyds dig their heels in....

LizzyLarner

I have made a formal complaint but am told due to COVID it could be up to 8 weeks before I get a reply. I was also told by the young lady that I spoke to in LLoyds Bank complaints dept that it was company policy and even though I have lodged my dissatisfaction with them it is unlikely to alter anything. They can keep my money if I am unable to get into a branch, even though they closed my local one.

kuratowski

LizzyLarner said:

kuratowski said:

How about an ISA transfer

Because it has been so long now they have 'locked' the account and won't transfer or close or anything. There must be loads of people in this position now so many branches have closed.

With an ISA transfer you never talk to Lloyds.  You open a new ISA with your current bank, and they arrange to get your money from Lloyds.

eskbanker

LizzyLarner said:

I have made a formal complaint but am told due to COVID it could be up to 8 weeks before I get a reply.

Eight weeks is the maximum time allowed for complaint handling, under standard FCA regulations, nothing to do with Covid.

LizzyLarner said:

I was also told by the young lady that I spoke to in LLoyds Bank complaints dept that it was company policy and even though I have lodged my dissatisfaction with them it is unlikely to alter anything.

She would say that, wouldn't she?!  If she's at the pay grade necessary to confirm applicability of their policy then she may be right though, even if FOS ultimately disagree....

LizzyLarner said:

They can keep my money if I am unable to get into a branch, even though they closed my local one.

They don't have the legal right to keep your money as such, but can impose reasonable restrictions on access, although, as above, I'd argue that this is at least bordering on unreasonable.  It remains your money though.

colsten

eskbanker said:

LizzyLarner said:

I have made a formal complaint but am told due to COVID it could be up to 8 weeks before I get a reply.

Eight weeks is the maximum time allowed for complaint handling, under standard FCA regulations, nothing to do with Covid.

Doesn't stop Lloyds from telling customers that it might take 8 weeks due to Covid.

born_again

LizzyLarner said:

sheramber said:

Can you close it on online banking?

Make an  official complaint.

I don't do online banking. I am a bit old and not computer savvy. I've struggled to see how to reply to people on here even. I have made a complaint but it is their policy and I keep hitting a brick wall.

If it is their policy, then even if it goes to FOS there is very little chance of FOS telling them to change it.

@colsten OP has already made a complaint & it is being dealt with by the complaints team. There seems to be a misapprehension that a complaint has to be in writing. It does not. Any expression of dissatisfaction by any means has to be treated as a complaint. Failure by the bank can see them in trouble with the regulator.

eskbanker

colsten said:

eskbanker said:

LizzyLarner said:

I have made a formal complaint but am told due to COVID it could be up to 8 weeks before I get a reply.

Eight weeks is the maximum time allowed for complaint handling, under standard FCA regulations, nothing to do with Covid.

Doesn't stop Lloyds from telling customers that it might take 8 weeks due to Covid.

Indeed, but at the risk of getting bogged down in semantics, that's actually Lloyds saying that Covid "means it could take over 8 weeks" whereas I took OP's reference to being told "up to 8 weeks" to signify the usual FCA-imposed timescale ("[Subject to DISP 1.6.2AR,] the respondent must, by the end of eight weeks after its receipt of the complaint, send the complainant: (1) a 'final response' [...]").

eskbanker

born_again said:

LizzyLarner said:

sheramber said:

Can you close it on online banking?

Make an  official complaint.

I don't do online banking. I am a bit old and not computer savvy. I've struggled to see how to reply to people on here even. I have made a complaint but it is their policy and I keep hitting a brick wall.

If it is their policy, then even if it goes to FOS there is very little chance of FOS telling them to change it.

Point taken, but FOS does also consider matters from the perspective of fairness, rather than solely a legalistic viewpoint, so it's entirely plausible that FOS would hold Lloyds to be acting unreasonably if they're refusing to handle ID verification other than in branch when a customer with limited mobility is looking to close an old ISA....

Ballard

They will have a different procedure for dormant accounts and it seems as though you’ve encountered them. I don’t know what their rules would be but re-verifying your identity would seem reasonable. I wouldn’t be surprised if an ISA transfer met with some difficulty. 

The fact that, through no fault of your own, your branch is now a considerable distance should make them find another route to help you, though. 

VXman

LizzyLarner said:

sheramber said:

Can you close it on online banking?

Make an  official complaint.

I don't do online banking. I am a bit old and not computer savvy. I've struggled to see how to reply to people on here even. I have made a complaint but it is their policy and I keep hitting a brick wall.

You are doing well to register and post on here. Online banking is not a lot more complicated and would make a lot of difference to how you handle your finances. Why not give it a try?  Or do you have any younger family and friends who might guide you through it?