Bank account being close

csgohan4

Frequentlyhere said:

GeordieGeorge said:

Frequentlyhere said:

Thrugelmir said:

Only you know the activity that is going through your account , and whether it contravenes the terms and conditions you agreed to, or are of a more questionable nature. Banks don't arbitrarily close accounts for no reason. 

Not the case here perhaps, but I had an issue once (which I raised here) where Halifax bank did exactly this. In April 2020 (great timing) they told me they were closing all of my HBOS accounts including sharedealing - no reason whatsoever.

I learned from others that they don't 'like' perfectly legitimate P2P lending. I had been lending small amounts through LendingCrowd, an FCA regulated firm.  

I wrote them an appeal letter saying that i'd be happy to furnish any detail they needed to assure themselves about my account, and they overturned the decision purely on that basis. 

I mention it because I'd say that's pretty darn close to 'arbitrarily for no reason'

No reason other than the actual, real, specific one which they told you about...

If you care to re-read my post, they never told me any reason, I second-guessed it from a forum post from someone else.
 
Frankly, even if they had have spelled it out then me choosing to invest small amounts in P2P is hardly a good reason is it?

whether it's a good reason in your opinion is irrelevant. It's whats set out in your T+Cs you agreed to with the bank

As above, banks are under no obligation to tell you why, just as your under no obligation to tell them why you want to close your account

colsten

Frequentlyhere said:

If you care to re-read my post, they never told me any reason, I second-guessed it from a forum post from someone else.
 
Frankly, even if they had have spelled it out then me choosing to invest small amounts in P2P is hardly a good reason is it?

As they never told you what the reason was, your guess might not have been the actual reason.

Fact remains that they don't have to give you a reason for closing your account - - - just in the same way as you can close your account without having to give any reason.

GeordieGeorge

danjackson2021 said:

bizdustry said:

I've had my bank account closed before. I struggle to understand why providers are allowed not to give a reason to the customer for closing the account. Giving a reason will clear up a lot of misunderstanding and false cases.

how could someone do something wrong ?

indidnt know there were rules for a bank account 

is there some kind of rule you have to stick to?

Yes, there are terms and conditions that you signed up to, but the bank can also just decide that they don’t want to do business with you any longer, in just the same way that you can decide to change banks.

GeordieGeorge

Frequentlyhere said:

GeordieGeorge said:

Frequentlyhere said:

Thrugelmir said:

Only you know the activity that is going through your account , and whether it contravenes the terms and conditions you agreed to, or are of a more questionable nature. Banks don't arbitrarily close accounts for no reason. 

Not the case here perhaps, but I had an issue once (which I raised here) where Halifax bank did exactly this. In April 2020 (great timing) they told me they were closing all of my HBOS accounts including sharedealing - no reason whatsoever.

I learned from others that they don't 'like' perfectly legitimate P2P lending. I had been lending small amounts through LendingCrowd, an FCA regulated firm.  

I wrote them an appeal letter saying that i'd be happy to furnish any detail they needed to assure themselves about my account, and they overturned the decision purely on that basis. 

I mention it because I'd say that's pretty darn close to 'arbitrarily for no reason'

No reason other than the actual, real, specific one which they told you about...

If you care to re-read my post, they never told me any reason, I second-guessed it from a forum post from someone else.
 
Frankly, even if they had have spelled it out then me choosing to invest small amounts in P2P is hardly a good reason is it?

Yes, it’s perfectly good. Their account, their rules.

colsten

Deleted_User said:

the bank can also just decide that they don’t want to do business with you any longer, in just the same way that you can decide to change banks

This is legally correct (AFAIK), but I'm surprised that many posters seem to be so blasse about it. Banks and and ordinary people are in a relationship with very unequal power. Freedom of contract is not the same for both parties when in reality one party writes every word of the contract, including frequently amending it (as they are entitled to do, under the terms of the original contract - which they wrote!). And the consequences of not having access to a bank account are pretty severe; it should be regarded as an essential service.

Nobody is blasse - people are simply stating the facts. Please don't over-dramatise the matter by making incorrect claims about people being left with no access to a bank account. Apart from the very severest criminals, every adult who can prove their ID and who has a UK address is entitled to at least a basic bank account, and there are at least a dozen providers to choose from. In addition, there are Credit Unions which offer current accounts, as well as a number of prepaid cards which come with a sort code and account number.

It goes without saying that all of these accounts also come with T&Cs, and it's your choice to accept them to get the service or not to accept them and not get the service. When T&Cs change, you have the right to close your account. If you don't like the concept of T&Cs as such, you'll find it hard to lead a normal life, as T&Cs are everywhere, even on the MSE Forum. 

happybagger

The use of 'balance of power' seems a bit excessive. I'd be surprised if a customer would think he needs 'power', I've never considered it.

I just signed up to a service and accepter the terms. Either my bank or myself have the choice to exit.

Thrugelmir

Deleted_User said:

the bank can also just decide that they don’t want to do business with you any longer, in just the same way that you can decide to change banks

Freedom of contract is not the same for both parties when in reality one party writes every word of the contract, including frequently amending it (as they are entitled to do, under the terms of the original contract - which they wrote!). 

That's why banks are highly regulated. More so than many other types of commercial activity.  Unsurprisingly there's a great deal of consistency given the fact English Law is long established and respected. 

colsten

Deleted_User said:

........ there are still 1 million or so adults without a bank account.

This is not due to lack of offers from banks, building societies, credit unions or prepaid card providers.

Deleted_User said:

Considering the costs and inconvenience involved in losing access to a bank account, even if you are able to open another one, I think banks should generally be required to given a reason for closing a bank account (perhaps with limited exceptions, e.g. to avoid tipping you off that you're under criminal investigation). And then you should be able to complain in the usual way if the reason given isn't fair.

Consumers have the right to ask for reasons if they are denied a basic account. Consumers also have the right to complain whatever account the account is, and banks have a legal obligation not to share the reasons if they suspect fraud or money laundering. In addition, banks have the right to close standard accounts when an account holder enters bankruptcy (as is the case with the OP).

Not sure what costs you have in mind when somebody is forced to change their banking arrangements. Inconvenient it might well be, but this inconvenience has almost certainly be brought onto the 'victims' by themselves.

Deleted_User said:

My point was that who writes the T&Cs is one indication of the balance of power.

One significant reason for T&Cs are the protection of the customer, as it is spelt out in clear text what rights and duties either party has. All current account T&Cs I have seen - and I have seen many - have very clear clauses about ending the agreement, for either party.

You also have the full and unreserved power not to accept the T&Cs. I have yet to hear anyone say they couldn't have a current account with a specific provider because they found the provider's T&Cs unacceptable. May be you are the first, and only, person in that situation?

GeordieGeorge

Deleted_User said:

the bank can also just decide that they don’t want to do business with you any longer, in just the same way that you can decide to change banks

This is legally correct (AFAIK), but I'm surprised that many posters seem to be so blasse about it. Banks and and ordinary people are in a relationship with very unequal power. Freedom of contract is not the same for both parties when in reality one party writes every word of the contract, including frequently amending it (as they are entitled to do, under the terms of the original contract - which they wrote!). And the consequences of not having access to a bank account are pretty severe; it should be regarded as an essential service.

I completely disagree. They should no more have to have you as a customer than you should be forced to bank with a certain company.

newatc

If I decided to close a bank account (which I have done) then I am happy to tell the bank why when they ask. It doesn't seem to much to ask that if a bank decides to "close" your account that they tell you the reasons why.