Bank closed business account with no explanation

savvymum1

Hi, 
I have a tsb business banking account and received a letter saying from next month they will be closing my account. No further explanation offered. I was going to close the business down anyway but I would like to start another business in the future will the bank closing my account affect me opening a business in the future? I've checked my credit score and it's great. I have a mortgage will the account closure affect me in anyway? Very worried about this. 

Thrugelmir

What activity on the account could have caused this? 

savvymum1

I did phone them and they couldn't give me a reason! There wasn't any activity on there apart from my furlough going in and me paying myself my wages. 

Grumpy_chap

savvymum1 said:

Hi, 
I have a tsb business banking account and received a letter saying from next month they will be closing my account. No further explanation offered. I was going to close the business down anyway but I would like to start another business in the future will the bank closing my account affect me opening a business in the future? I've checked my credit score and it's great. I have a mortgage will the account closure affect me in anyway? Very worried about this. 

If they are giving you a month to sort matters out and transfer away in an orderly fashion, then this is at least not the same level of impact as an instant closure that some report, for example if fraud / money-laundering is suspected.

It may simply be that your business profile and account operation does not match the target profile of TSB so they are ceasing dealing with you.  Not that the way banks give no information actually helps you or them.

Thrugelmir

savvymum1 said:

I did phone them and they couldn't give me a reason! There wasn't any activity on there apart from my furlough going in and me paying myself my wages. 

As suggested above. Closing unprofitable accounts may well be a decision that has been made at board level to cut costs. You won't have been singled out for attention. Your furlough payment has now ended. Presumably this was why you intended to close the account. The bank has preempted you.