Banks closing accounts

RG2015

A bank can close a bank account without giving a reason. They can also close an account for irregularities without providing any evidence. This second point is based on a post on another thread today and I see no reason to doubt it.

My question is whether there is any evidence of a bank doing this to a completely innocent customer?

TimSynths

Yes- ive done it. I used to work in a fraud dept and would sometimes close "linked" accounts. An account could be run within guidelines but would receive regular cheques or transfers from an account that we had closed for fraud.

RG2015

TimSynths said:

Yes- ive done it. I used to work in a fraud dept and would sometimes close "linked" accounts. An account could be run within guidelines but would receive regular cheques or transfers from an account that we had closed for fraud.

Thank you. This is very interesting.

Did you inform the innocent customer of this and did you mention fraud to them?

Also, was the “linked “ account a proven fraud case or just suspected?


Fortunately nobody ever pays me any money. 

[Deleted User]

RG2015 said:

A bank can close a bank account without giving a reason. They can also close an account for irregularities without providing any evidence. This second point is based on a post on another thread today and I see no reason to doubt it.

My question is whether there is any evidence of a bank doing this to a completely innocent customer?

Yes, I opened an account with a now-defunct bank with the intention of testing it out then switching over if I liked it. Set up the account, added card to Apple Pay, paid some money in. Then the following working day I woke to my Apple Pay being disabled and being unable to log in. Closed and the CS would refuse to say why. Only had one transaction in and one out to set my other account up as a payee (before the days of CoP). No issues before, or since, with any other bank.

I will never bank with them - or their successors - ever again.

flaneurs_lobster

Happened to me, albeit some years ago. Moved to new city, applied to branch of local bank for a mortgage (100%, that's how long ago it was). Had to open a current account as condition of loan.

Turns out there was a very naughty Mr flaneurs_lobster who lived locally, serial fraudster. My account was frozen within a couple of days of being opened. Sorted out within a week, think they gave me a tenner for my trouble (and an 80K mortgage).

diystarter7

RG2015 said:

A bank can close a bank account without giving a reason. They can also close an account for irregularities without providing any evidence. This second point is based on a post on another thread today and I see no reason to doubt it.

My question is whether there is any evidence of a bank doing this to a completely innocent customer?

Hi

Never had it or come close to it but I hear it goes on and other posters have confirmed this.
Money laundering is one suspect.

If they closed my account for no reason, I'd want to know why but if I knew I was doing something I was not supposed to, I'd just leave it.

Thanks

DullGreyGuy

RG2015 said:

A bank can close a bank account without giving a reason. They can also close an account for irregularities without providing any evidence. This second point is based on a post on another thread today and I see no reason to doubt it.

My question is whether there is any evidence of a bank doing this to a completely innocent customer?

Banks, like all businesses, are free to choose who they want and dont want as a customer as long as its not due protected characteristics (race, sexual orientation etc). 

Had a joint loan with an ex that I'd taken on payments for when we split, whilst it was fully paid up to date and only had a couple more months to run but it appears the ex got into financial difficulties and was told they were closing both the loan account and my current account that was in my sole name. On the plus side they did say they'd write off 50% of the loan if I could repay it in full... unfortunately no such offer for the small interest free overdraft that I happened to be in as it was close to payday. Though it was "her fault" the account was being closed because she wasnt named on it they wouldnt give any settlement offer. 

Band7

[Deleted User] said:

RG2015 said:

A bank can close a bank account without giving a reason. They can also close an account for irregularities without providing any evidence. This second point is based on a post on another thread today and I see no reason to doubt it.

My question is whether there is any evidence of a bank doing this to a completely innocent customer?

Yes, I opened an account with a now-defunct bank with the intention of testing it out then switching over if I liked it. Set up the account, added card to Apple Pay, paid some money in. Then the following working day I woke to my Apple Pay being disabled and being unable to log in. Closed and the CS would refuse to say why. Only had one transaction in and one out to set my other account up as a payee (before the days of CoP). No issues before, or since, with any other bank.

I will never bank with them - or their successors - ever again.

Which bank which used to offer ApplePay is now defunct?

RG2015

DullGreyGuy said:

RG2015 said:

A bank can close a bank account without giving a reason. They can also close an account for irregularities without providing any evidence. This second point is based on a post on another thread today and I see no reason to doubt it.

My question is whether there is any evidence of a bank doing this to a completely innocent customer?

Banks, like all businesses, are free to choose who they want and dont want as a customer as long as its not due protected characteristics (race, sexual orientation etc). 

Had a joint loan with an ex that I'd taken on payments for when we split, whilst it was fully paid up to date and only had a couple more months to run but it appears the ex got into financial difficulties and was told they were closing both the loan account and my current account that was in my sole name. On the plus side they did say they'd write off 50% of the loan if I could repay it in full... unfortunately no such offer for the small interest free overdraft that I happened to be in as it was close to payday. Though it was "her fault" the account was being closed because she wasnt named on it they wouldnt give any settlement offer. 

I am unhappy with the possible consequences of the point in your first paragraph. Banks have a duty of care to every one of their customers regardless of protected characteristics.

If a bank were to close an account of an innocent customer they may suffer financial hardship or discrimination as a consequence. Many people believe there is no smoke without fire.

AstonSmith

RG2015 said:

I am unhappy with the possible consequences of the point in your first paragraph. Banks have a duty of care to every one of their customers regardless of protected characteristics.

If a bank were to close an account of an innocent customer they may suffer financial hardship or discrimination as a consequence. Many people believe there is no smoke without fire.

I agree completely. Occasionally threads are posted on here where someone's account has been closed, and there'll be responses along the lines of "we're not getting the whole story" and "banks don't close accounts without a reason".

With banking being so important in an increasingly cashless society, I think the law should be changed so that banks have to give a better explanation of why they are closing an account.

@TimSynths - that's fascinating, and what I suspected. It's why I won't ever accept bank transfers from third parties, in case I'm whisked into a mess I had no part in. I've seen enough threads about peoples' accounts being locked to learn the lesson.

WillPS

It's never happened to me but I do somewhat fear it. I remember one day I received a letter in a Natwest branded envelope and a similar one in an RBS branded envelope. In my mind's eye both were marked 'important information enclosed' or similar. I was convinced they'd be closure letters. Turned out it was a closure letter of sorts in both, but a much less scary one - Natwest Group had decided to close both my NatWest branch (Nottingham Victoria Centre) and RBS branch (Child & Co) in the same round.

Band7 said:

ndrw said:

RG2015 said:

A bank can close a bank account without giving a reason. They can also close an account for irregularities without providing any evidence. This second point is based on a post on another thread today and I see no reason to doubt it.

My question is whether there is any evidence of a bank doing this to a completely innocent customer?

Yes, I opened an account with a now-defunct bank with the intention of testing it out then switching over if I liked it. Set up the account, added card to Apple Pay, paid some money in. Then the following working day I woke to my Apple Pay being disabled and being unable to log in. Closed and the CS would refuse to say why. Only had one transaction in and one out to set my other account up as a payee (before the days of CoP). No issues before, or since, with any other bank.

I will never bank with them - or their successors - ever again.

Which bank which used to offer ApplePay is now defunct?

N27 perhaps? Post Office, Salvation Army, M&S Bank and Tesco Bank are still about but have withdrawn from current accounts.