Reason of transferring money, or taking money out?

MCNAV

This may be in the wrong section, but here goes.

Everytime I transfer money, or take money out of my Lloyds account I am expecting them to ask "what is the reason for the transfer?", "why are you taking this money out?". Do I need to answer these questions?

I had my bank account blocked the other day, as I was transferring money to a Monzo account, which flagged as potential risk. When I called and told them to unblock my account, they insisted I answered where the money was going, and why it was being transfered out, I could then hear her typing notes of what I said.

Is this now normal policy for Lloyds Bank?

eskbanker

All the major banks signed up to a voluntary code in 2019, under which they accept liability for money lost to authorised push payment scams, so compliance with this code requires them to monitor outbound transfers and warn customers of the risks.  They'll all handle this in slightly different ways, and they'll each use different algorithms to identify which transfers are considered suspicious, but if they're on the hook if the transfer turns out to be dodgy then it's unsurprising that they'll push for details of where the money is going and why.

Daliah

This is one of the consequences of consumer rights campaigners demanding, and the FCA agreeing, that banks must reimburse people when they get scammed out of their money.

northwalesd

I am never asked by Lloyds (or Halifax) a reason for making a payment, unlike Virgin and Santander.

sheramber

it took me nearly an hour  of questions and repeated 'we are just having a full and frank discussion.',  before the bank would un freeze a payment to a contractor for work done.£4000.

It included how did I find this company, were they known to me, have they done the work, are you happy with the work done.. do you know the account is genuine- yes it was handed to me when the work was completed., did you transfer from your saving  account to your current account? Yes, to pay this account.

I did transfer the money a month before I needed it as I knew when the work would be done.

anotheruser

As @Daliah says, it's now the way things are.

Because "people" started blaming the banks when they were scammed... "why didn't you stop me paying?" or "you allowed me to get scammed, even though I fully instigated and made this payment", we now have to jump through hoops to get at our own money.

It's often easier to close an account.

Daliah

sheramber said:

it took me nearly an hour  of questions and repeated 'we are just having a full and frank discussion.',  before the bank would un freeze a payment to a contractor for work done.£4000.

It included how did I find this company, were they known to me, have they done the work, are you happy with the work done.. do you know the account is genuine- yes it was handed to me when the work was completed., did you transfer from your saving  account to your current account? Yes, to pay this account.

I did transfer the money a month before I needed it as I knew when the work would be done.

I reckon this sort of thing will become more commonplace the more banks get forced to refund real or alleged APP fraud victims. Banks have little choice, as the consumer has effectively been absolved of all responsibility for checking who they pay, and it would be a fraudsters paradise if banks did not have these pretty annoying controls. It’s not unlike stringent airport screening which we all have to endure because  of a few idiot terrorists.

Thrugelmir

People are quick enough to claim compensation from the banks when they get scammed . Hardly surprising that banks are covering their backsides fully.  

Send a cheque and avoid the hassle...........

robatwork

anotheruser said:

If I don't provide specifics to a question, don't ask for them in your answer.
When I want specific answers, I'll provide the information.

What in the name of footerpassiveaggression is this?

Shakin_Steve

robatwork said:

anotheruser said:

If I don't provide specifics to a question, don't ask for them in your answer.
When I want specific answers, I'll provide the information.

What in the name of footerpassiveaggression is this?

The kind best ignored.

Alex9384

I was never asked by any of my 10 banks. Only got transaction blocked by Halifax in 2018 when sending £800 from newly opened account to another account in my name. I had to ring them up and tell them it's OK. Since then, no more blocked transactions and no questions even when sending £10k.