Frozen Bank Account

FinlayS

Hi, I would be grateful if someone could help.

I had a business account with Barclays, which received a bounce back loan, Barclays then wrote to me stating they were closing my business account, this was at the same time that Companies House wrote to me, stating that my companies confirmation statement was overdue, this brought up a red flag to Barclays, as it may have seemed the company was heading to be struck off, without paying the loan back which isn't the case, and the confirmation statement has been filed and everything is up to date with company.

Anyway, there was still a substantial amount of money left in the personal account, which was largely renumeration from the business and the bounce back loan.

When I went to Barclays to close the account, I was permitted to send the money to another account with Santander, which I did.

Santander received "a notification" from Barclays stating something about an unpaid loan/credit or something along those lines (which I found out as the woman in the recieving bank was reading out the notes on the account out loud to me).

The receiving bank (Santander) has now frozen the account, and yesterday the amount just dissapeared from the account, when I inquired the branch staff, said it had been withdrawn from the account, whilst it is under investigation.

I went into the branch with my ID again and a letter explaining how the money is mine from my company and my renumeration.

The questions that I have are:

1) Can Barclays rescind the payment back from the receiving bank, to themselves, even though it was an authorised payment instruction from myself, in a Barclays branch? and the loan which it was taken out under isn't even due yet?

2) Does the 'right of set off' (the right to take money paid into your account to cover missed payments on other accounts you have with them) apply to other banks, my understanding was, that procedure can only be used within that bank itself, not from one bank to another.

3) How long can Santander withhold the money from my account?

4) Is there anything else I can do?

Thanks

Thrugelmir

Why did the monies from the bounce back loan end up in your personal account? 

FinlayS

It was my salary, and yes tax was paid on it, and it was the same salary i had for the past 3 years

Armorica

The right of set-off doesn't apply across banks. But payments can be recalled/frozen particularly if there are concerns around fraud.
I'm a bit confused about the accounts you're referring to though.
Barclays closed your business account. Did they or you close your Barclays personal account? Is your Santander account a personal or business account?

kaMelo

FinlayS said:

Hi, I would be grateful if someone could help.

I had a business account with Barclays, which received a bounce back loan, Barclays then wrote to me stating they were closing my business account, this was at the same time that Companies House wrote to me, stating that my companies confirmation statement was overdue, this brought up a red flag to Barclays, as it may have seemed the company was heading to be struck off, without paying the loan back which isn't the case, and the confirmation statement has been filed and everything is up to date with company.

Anyway, there was still a substantial amount of money left in the personal account, which was largely renumeration from the business and the bounce back loan.

When I went to Barclays to close the account, I was permitted to send the money to another account with Santander, which I did.

Santander received "a notification" from Barclays stating something about an unpaid loan/credit or something along those lines (which I found out as the woman in the recieving bank was reading out the notes on the account out loud to me).

The receiving bank (Santander) has now frozen the account, and yesterday the amount just dissapeared from the account, when I inquired the branch staff, said it had been withdrawn from the account, whilst it is under investigation.

I went into the branch with my ID again and a letter explaining how the money is mine from my company and my renumeration.

The questions that I have are:

1) Can Barclays rescind the payment back from the receiving bank, to themselves, even though it was an authorised payment instruction from myself, in a Barclays branch? and the loan which it was taken out under isn't even due yet?

2) Does the 'right of set off' (the right to take money paid into your account to cover missed payments on other accounts you have with them) apply to other banks, my understanding was, that procedure can only be used within that bank itself, not from one bank to another.

3) How long can Santander withhold the money from my account?

4) Is there anything else I can do?

Thanks

Was there not a condition of the BBL that it was repayable in full upon closure of the business account? Maybe this is the "unpaid loan" they are referring to.
I would have thought though that Barclays would check first that there was nothing outstanding such as repaying the BBL before making the payment to another bank..
Whether they are allowed to recall the payment for this reason I don't know, a read up on banking regulations would provide an answer.