Bank closed my account

pipwin1962

In May 2021 my bank wrote to me advising they may close my account due to lack of activity. As requested I contacted them by phone to confirm I still wanted the account open and furthermore they advised me to register for  online banking so I could easily show activity around my account. This I did in May 2021. Although I periodically interrogated my account through online banking and accessed statements the bank without any further notice closed my account in late August 2021. I only noticed this when my online account became inaccessible. I followed the Bank's advice and visited my branch to enquire what had happened and after the best part of an hour they accepted that they had closed my account but resisted telling me where the money had gone and wouldn't reactivate my account. Despite the website saying accounts closed in this way could be reactivated they said they don't do this any more and proceded to open a new account for me. Eventually they admitted that the money in my account was still there when they closed it and they would need to apply to the Dormant Account section to get my money back which they suggested may take 12 weeks. I have received no confirmation that they have done this and I  have no way of checking whether it has as when I phone customer services they can find no record of any requests to the Dormant Accounts department. 
I have actually tried to get through to the Fraud section but they would not speak me saying there was no evidence of fraud.
My questions are, 
1) Is this reasonable action  for the Bank to take?
2) Why are they resisting being open with me when  they were obviously satisfied with my identity as they opened a new account?
3) How can a bank remove a substantial amount of money and close someone's account without advising the account holder?
4) Why do they seem reticent to give me my money back?
5) Why will they not confirm that they will actually give me my money back?

They have had my money for nearly seven months now.

I hope someone can at least put my mind at rest  my bank certainly have not. This is one of the big banks and customer treatment is very poor.

tacpot12

Closing your account when you have not used it is reasonable and will be provided for in the T&Cs.

Whether  accessing the online service and viewing statement is enough to say that the account is being used is a decision for the bank - the T&Cs will usually require a payment in or out of the accoint to show it is being used. However, if you were told that viewing statements or logging into the online service was sfficient, you have a valid complaint if that has turned out to be incorrect. 

Any resistance to being open with you is likely to be down to incompetence.

The bank told you they would close your account if you didn't use it, and you didn't use it, so you can't really complain that they didn't tell you. However, I do think it is unreasonable for them not to have written to you after they had closed the account to tell you what to do to get your money back. I would make a formal complaint if they did not do this. 

They are not reticent about giving you your money back, they are just incompetent. They might also have to do some work to get the money back, and the staff may just be lazy. 

They will give you money back, and I would make a formal complaint and make sure you get interest on the money. They have been earning interest on it while it is sat in their dormant accounts account.

Thrugelmir

Viewing the account is unlikely to be considered as activity. What was required was transactional activity such as your salary being credited and payments made. Absorbing the banks time and therefore costing them yet further money. May well have cemented their decision. 

Daliah

I have a semi-dormant current account with HSBC which I want to keep for a variety of reasons. They recently wrote to me to advise that they will close the account unless I am making at least one transaction within the next 6 weeks. I have now set up a couple of SOs to pay small amounts of money in and out of the account every couple of months, and that seems to satisfy them.

Similar happened with a small Credit Union account I have. 

@pipwin1962, if not already done, you could raise a formal, written, complaint with your bank to get the matter resolved.