Banks suddenly closing my accounts - Cifas?

foedel

I was young and naive about four years ago (2017) and allowed a cousin to talk me into becoming a money mule. I only did it once, and have never gotten involved with any of such practices since then. I was with Lloyds bank, and they closed my account when it happened. I was able to immediately open an account with NatWest, and everything has been okay. I had an account with Monzo from the same year (2017) and sometime in April this year (2021), Monzo gave me the 60 days notice and closed my account. I was not using it actively, and I assumed the closure was due to a couple of bounced direct debits. 

Yesterday, NatWest closed my account out of the blue. No warning text, no communication whatsoever. I was just at the shop buying lunch and my card kept getting declined. I called them to ask what the issue was and they very unhelpfully told me to wait for the letter to figure learn my options. I have sent SAR requests to National Hunter, Cifas, and Synectic Solutions this morning, but I know responses take a while. 

Do you guys think my mess up from 2017 has finally come back to haunt me? I'm literally in the middle of moving homes, because my landlord is selling, and this is the very worst time to be left without access to any money. My income and savings were with NatWest, and I have no access and no way of paying my first month's rent/deposit due in a week!

I just need some advice, I'm guessing if the issue is really a Cifas Marker, then I should not be rushing to open any new accounts with any mainstream banks. I'm really hoping the issue is just Natwest not being happy with how I have been banking or something. 

Another thing that may have caused this is I have been receiving transfers from family in my home country who have asked me to buy stuff for them as I intend to visit in a couple of months. Two transfers of £370 and £780 ish respectively in the past week and a half. I have received many such transfers in the past with no issues from NatWest, so I can't understand why that could be causing problems now. I also received a £3k loan from a friend which was to be used for paying the deposit/rent for my house as I have been very financially irresponsible, and am just trying to build myself up. I know he's not into any shady business, and his accounts have not been closed. I asked. 

I have a credit card with Barclaycard from 2015 that still works as of today, and it's all I have for feeding and living at the moment. Assuming the worst and I have a Cifas marker, do you think this credit card could get affected? It's really all I have left at the moment. 

I know everything that can be said is speculative until I receive the SAR responses, but please speculate away. 

[Deleted User]

If you do still have a marker for fraud, then yes, it's likely that it's impacted the NatWest account and could also impact your credit card.  Banks are taking a much tougher line on fraudulent customers now.

However, the transfers from your family are also not going to be doing you any good.  You need to get into the mindset that your bank account is for you to use and not others, not matter what excuses they give you.

There's little you can do until CIFAS come back, but that should be quick. 

With regards to paying your rent, you need to transfer your funds to a new account if you can get one, and assuming NatWest allow it.

foedel

Thanks for the response. I still have not received the letter from NatWest, so I'm not sure if I can transfer my funds as of yet. I intend to open a Starling bank account as soon as I'm sure it's safe to do so, so I can at least receive my paycheck for this month. 

I also don't want to have to be switching accounts with my employer so I don't arouse any suspicion. In case if my only recourse is to go with a pre-paid card, do you know if there any ones that can be used for receiving my salary, and setting up direct debits for bills, council tax etc?

[Deleted User]

foedel said:

Thanks for the response. I still have not received the letter from NatWest, so I'm not sure if I can transfer my funds as of yet. I intend to open a Starling bank account as soon as I'm sure it's safe to do so, so I can at least receive my paycheck for this month. 

I also don't want to have to be switching accounts with my employer so I don't arouse any suspicion. In case if my only recourse is to go with a pre-paid card, do you know if there any ones that can be used for receiving my salary, and setting up direct debits for bills, council tax etc?

You can open a basic bank account even with a CIFAS though it might be a fee paying type

You won't be able to get salary paid onto a pre-paid debit card

What has your employer got to do with anything? Lots of people switch accounts for bonuses all the time, just let your HR know you have changed account though I think it might be cutting it fine for the payroll this month depending when you get paid, I'd get started on the basic account asap, don't use a provider who will probably close your account again as soon as they see the CIFAS

Thrugelmir

foedel said:

I know everything that can be said is speculative until I receive the SAR responses, but please speculate away. 

Bottom line is that you don't meet the profile/criteria of customer that the bank wishes to transact business with.  That's a commercial decision nothing personal.  Though something has triggered the freezing of your account. Potentially the source of the recent funds. 

foedel

You can open a basic bank account even with a CIFAS though it might be a fee paying type

Thanks, I'm looking into it. The forum suggests Santander, Co-Op or Virgin money, but apparently, these are not friendly to "those with a record of fraud". I looked at Monese, but they seem to charge quite a bit for doing basically anything with the account. I would like to get something set up ASAP so I can at least receive this month's wages. I'll keep researching, but any pointers in the direction to look would be very helpful. 

What has your employer got to do with anything? Lots of people switch accounts for bonuses all the time, just let your HR know you have changed account though I think it might be cutting it fine for the payroll this month depending when you get paid, I'd get started on the basic account asap, don't use a provider who will probably close your account again as soon as they see the CIFAS

It's not the switch I am worried about, but switching to one that then gets closed in a week, and having to switch again that makes me worried. 

foedel

Bottom line is that you don't meet the profile/criteria of customer that the bank wishes to transact business with.  That's a commercial decision nothing personal.  Though something has triggered the freezing of your account. Potentially the source of the recent funds. 

Fair enough, while this is a massive bother, I just care about getting my money back from them and at least getting another account without issues. I'm not looking for them to reopen the account. To be honest, I would be very relieved if all this is, is that they just aren't interested in my banking with them.

I switched to a rewards account late last year, and also applied for a credit card with them, to which they never even responded (I assumed it was declined). I would have expected those activities to have raised whatever flags if I have a Cifas marker, but nothing. 

AstonSmith

Thrugelmir said:

Bottom line is that you don't meet the profile/criteria of customer that the bank wishes to transact business with.  That's a commercial decision nothing personal.  Though something has triggered the freezing of your account. Potentially the source of the recent funds. 

I'm not saying you're factually wrong, but isn't it weird how people can be come effectively locked out of the banking system if they don't fit a certain profile?

Am I the only person who thinks this excuse shouldn't wash any more?

Momanns

It could be something silly like a change in the way these banks use CIFAS. If they tweaked their criteria to be more accurate for example it might have picked up on a flag where previously it wouldn't have. Some banks have really exact criteria to avoid false positives but this may miss an individual with a different address, slight change of name etc.

The alternative is that due to the insanely high levels of fraud, banks are tightening up on their risk appetite to avoid losses.

"Another thing that may have caused this is I have been receiving transfers from family in my home country who have asked me to buy stuff for them as I intend to visit in a couple of months. Two transfers of £370 and £780 ish respectively in the past week and a half"

Any chance these funds actually didn't come from an account actually held by family members? If they approached a back door MSB or similar, it's possible the funds into your account were actually from a source the bank were not happy with.

Thrugelmir

AstonSmith said:

Thrugelmir said:

Bottom line is that you don't meet the profile/criteria of customer that the bank wishes to transact business with.  That's a commercial decision nothing personal.  Though something has triggered the freezing of your account. Potentially the source of the recent funds. 

I'm not saying you're factually wrong, but isn't it weird how people can be come effectively locked out of the banking system if they don't fit a certain profile?

Am I the only person who thinks this excuse shouldn't wash any more?

No excuse. Banks don't have capacity to micro manage their customers. Keeping matters in perspective the number of accounts closed is relatively small. 

[Deleted User]

AstonSmith said:

Thrugelmir said:

Bottom line is that you don't meet the profile/criteria of customer that the bank wishes to transact business with.  That's a commercial decision nothing personal.  Though something has triggered the freezing of your account. Potentially the source of the recent funds. 

I'm not saying you're factually wrong, but isn't it weird how people can be come effectively locked out of the banking system if they don't fit a certain profile?

Am I the only person who thinks this excuse shouldn't wash any more?

No-one is locked out of the banking system but "fitting a certain profile" is not the same as "has a CIFAS marker for fraud". Why would a bank want to risk exposure to criminality by letting the person have an account with them? That is why the computer says no. People can still get basic accounts for pay, managing bills etc so they're not shut out but their choice is limited because of the marker, not for having a certain profile.