LBG closing all my accounts on 18th May

pecunianonolet

Postie just delivered the below for current account and savings account. Wording completly the same, just a different reference number. Quite different to the letter @Bridlington1 received. Opinions?

ForumUser7

pecunianonolet said:

Postie just delivered the below for current account and savings account. Wording completly the same, just a different reference number. Quite different to the letter @Bridlington1 received. Opinions?

Have all your group accounts been closed though?

pecunianonolet

ForumUser7 said:

pecunianonolet said:

Postie just delivered the below for current account and savings account. Wording completly the same, just a different reference number. Quite different to the letter @Bridlington1 received. Opinions?

Have all your group accounts been closed though?

Nope, only Halifax, my Lloyds accounts (1 x Club Lloyds, 3 Classic Accounts, 1 x Club Lloyds Reg Saver and 1 x Reg Saver) are working normally without any issues. I had a switch out to first direct on the 20th and that account disapeared from the list yesterday. Both reg savers were opened in March and funded fully with the monthly limit. I have not closed and reopended any reg saver (T&C'S state it is allowed to close but it is not allowed to reopen within a 12 month period, however IT systems not preventing it). 

EarthBoy

WillPS said:

dealyboy said:

Hi @WillPS ... and thanks to @pecunianonolet for providing an honest and open discussion of their actions.

WillPS said:

pecunianonolet said:

I have been reading this thread with very high interest and unfortunately, I think LBG is on the hunt clearing their customer base. 

I opened a Lloyds account in January to benefit from their switching offer. I used a freshly opened Metro account for it since I didn't have any other donor account. As soon as I got the incentive I downgraded the account to a free classic account. After I got the statement and confirmation that no fees were payable I upgraded to Club, purely to get the cinema tickets, which took around 4 weeks to arrive.

The crucial bit, I opened within a very short period of time, I guess within a week, maybe two (would need to check all the emails for exact details) another 4 classic accounts. 

Of the classic accounts I switched away 2 on the same day to Natwest and RBS. After the switch was completed, I opened over the course of I think 3 days another 2 classic accounts to replenish the ones switched away. I was tempted on the Santander switch as well but was conscious of another switch and hard search and was trying to leave as much space as possible and then the offer was withdrawn. Not the end of the world, another one will come round.

Now, a few weeks later on the 6th March I opened a first direct current account for their switch offer (and access to the 7% reg saver), no issues and switch is in progress and should finish soon. They only gave a rather far in the future switch date as the first opportunity so accepted it as is. Lloyds again sent out a latter informing me they received a switch request and if this is wrong I should get in touch, same as with RBS & Natwest. HSBC is my main account for almost 15 years now and I think first direct must have had access to data that way. First direct had at account opening the ID checks, I took a photo of my passport as they required but when they wanted a live picture my phone denied the request and the whole process got cancelled and they said they'll get in touch. Got all documents, card and PIN and account working and the £1000 have been bounced through to meet the requirement. I also applied for a new account with Ulster and the signed application form was posted only yesterday, again a Lloyds account has been used at application stage for the switch.

I also had to apply for a Virgin current account to use the now NLA 4.25% 1y fix ISA, which got fully funded. However, HSBC was unable to make a 16k transaction in one go (put 4k into the ISA the day before), spent over 1h on the phone with them and was unable to make that transaction via app r online banking. However, was able to make make several smaller withdrawals from HSBC to Virgin ISA directly and to Club Lloyds. So I bounced money through Lloyds for this and funded the ISA that way too. HSBC complaint was raised via chat a few days later, it was dealt with immediately via chat and got compensated with £50 straight and complaint closed after I accepted.

Now, since I have enough donor/burner accounts with Lloyds I though, amazing, another opportunity with Halifax for yet another £175 and the opportunity to make a 5er in rewards as well. Was even planning to increase the number to 3 reward accounts to make it £15 a month.

SO applied to Halifax on the 14th of March, initiated a switch at account opening with a Lloyds account as it was confirmed here it is possible and the T&S's also not specified anything further. Got a text straight away from Halifax Switching Team telling me they received my request and will be in touch soon. 

On the 15th in the morning I got another text confirming switch date of 23rd March and a phone number should I have any further questions. Happy days I thought. 

On 16th of March I received the letter with the registration code for online banking. Did all everything required in the evening and got a text that I have successfully registered for online banking. Since I was in and everything worked so smoothly and without issues with Lloyds the weeks before, I thought this is great and opened a regular saver via app. No issues. Thought I go ahead and open a classic current account as well to upgrade in a few weeks to a rewards account. Current account application was declined. 

On the morning of the 17th March I received a text:

Mr pecunianonolet. We've now completed some further checks on your Current Account application and decided to close this new account. You may still get a message from us saying we've accepted your application. You can disregard this and destroy any card or PIN you received for this account. We're sending you a letter to confirm the closure and explain the reasons for it in more detail. You'll receive this in the next few days. Thank you.

I was rather annoyed, so went on to the app and asked in chat and got a reference number and phone number. I did not raise a complaint, it was only an inquiry at this point. Phoned and explained the case and asked for more detail. The gentleman on the other side said he is checking and put me on hold for at least 3-4 minutes and then told me that I have not met some of the criteria. I was asking what they are and in what part I failed and the answer was that he is unable to let me know. I was telling him that I would like to appeal to this decision and that I happily take it to the ombudsman if I feel that I have not been treated fairly, that I am happy to provide proof of address, payslips and identity details such as my passport and anything else they might require. His answer was that he is unable to deal with this and that it will be forwarded to his manager to review. He confirmed that a letter was posted the previous day and should be with me soon and will contain some info and what next steps I can do. Fair to say, that he was not the most friendly person to deal with.

Going to be interesting to see what the letter will say and if it is identical to the one posted. I have had no other issues with Lloyds itself, all the accounts show a NIL balance with them, except of the club and standard reg savers having had been funded with their allowance for March. 

The reasons could be the same, too many new accounts opened in a short while and soon after switched away. However, what speaks against this theory is that the OH did more or less the same:

- New Metro account switch to Lloyds
- Natwest/RBS switch completed and incentives received last week using Lloyds donor accounts
- Ulster application signed and posted yesterday
- Halifax account opened and accidentally she put down the account details of the account we already switched to Natwest so this was obviously declined. Submitted a new switch request for another unused Lloyds account on Sunday, no comms since about the switch but account open and working
- OH not able to use First Direct as she had an HSBC switch incentive before


So the multi account opening/switching could be a reason but it might also be that I just had in general too many hard searches and account openings. I also had 6 credit cards in the last 3 months for stoozing, however, non with LBG.

On another note, had raised a complaint a few weeks back as my Experian credit file showed all Natwest Group searches as credit searches, non of their entries was marked as a current account search and I also had a search I was not recognising as it should have only been a soft search and not  hard search so asked them to investigate and clarify and if needed correct. I never applied for any overdraft. Natwest compliant was investigated and they initially thought this extra search could be fraud, I agreed to be investigated but said that I can't approve or deny of it and just wanted to get facts first. As a result, shortly after I was given the outcome that they checked and requested for 3 searches to be removed, however, this was subject to approval and may or my not happen and I need to check again in 3 months. I was also assured in writing, that no CIFAS markers are applied to my file. However, since that my credit cards disappeared from my RBS/Natwest account. No access to statements, amends or checks of repayment etc. RBS took some money beginning of the month and Natwest was supposed to but nothing happened. I have responded to the complaints advisor to clarify why the accounts disappeared, no answer for over a week when they usually tried to call after 1-2 days. Chased up on it again, that's now over 10 days ago, nothing and accounts still invisible.

I am a higher earner, can comfortably put £2000 a month aside for savings/repayments and in theory be able to repay my stoozing debt easily, never had a missed payment ever so in the eyes of banks I should be a trustworthy customer.

Bit of a longer story but hope it provides enough details so others not get caught or into similar trouble. 

Did you not think at any point you were massively taking the mickey? I would be expecting LBG to permanently shut the door on me if I had the gall to open 4 current accounts at once only to switch them away almost immediately, one to another LBG brand!

... I don't agree.

MSE'ers want to save money and the more astute want to make money, and in both cases want to give or take advice. pecunia as far as I can see has done nothing illegal and kept within the rules and T&Cs, the only thing he/she/they are guilty of is a little naivety.

Rather than siding with the LBG for being 'offended' by a customer, I am concerned about the consequences for pecunia and partner of these corporate actions.

Don't open several accounts at once, it's a bad idea. Opening several and then immediately switching away for incentives elsewhere is stupid. Including a switch to another brand within the same banking group goes beyond that.

That's what got me chucked out of RBS and NatWest.  I'd used two RBS accounts for switching bonuses elsewhere, but when I opened another one and tried to use it to switch to NatWest a week later, they closed all my accounts and banned me for life.  My own stupid fault.  

Ed-1

EarthBoy said:

WillPS said:

dealyboy said:

Hi @WillPS ... and thanks to @pecunianonolet for providing an honest and open discussion of their actions.

WillPS said:

pecunianonolet said:

I have been reading this thread with very high interest and unfortunately, I think LBG is on the hunt clearing their customer base. 

I opened a Lloyds account in January to benefit from their switching offer. I used a freshly opened Metro account for it since I didn't have any other donor account. As soon as I got the incentive I downgraded the account to a free classic account. After I got the statement and confirmation that no fees were payable I upgraded to Club, purely to get the cinema tickets, which took around 4 weeks to arrive.

The crucial bit, I opened within a very short period of time, I guess within a week, maybe two (would need to check all the emails for exact details) another 4 classic accounts. 

Of the classic accounts I switched away 2 on the same day to Natwest and RBS. After the switch was completed, I opened over the course of I think 3 days another 2 classic accounts to replenish the ones switched away. I was tempted on the Santander switch as well but was conscious of another switch and hard search and was trying to leave as much space as possible and then the offer was withdrawn. Not the end of the world, another one will come round.

Now, a few weeks later on the 6th March I opened a first direct current account for their switch offer (and access to the 7% reg saver), no issues and switch is in progress and should finish soon. They only gave a rather far in the future switch date as the first opportunity so accepted it as is. Lloyds again sent out a latter informing me they received a switch request and if this is wrong I should get in touch, same as with RBS & Natwest. HSBC is my main account for almost 15 years now and I think first direct must have had access to data that way. First direct had at account opening the ID checks, I took a photo of my passport as they required but when they wanted a live picture my phone denied the request and the whole process got cancelled and they said they'll get in touch. Got all documents, card and PIN and account working and the £1000 have been bounced through to meet the requirement. I also applied for a new account with Ulster and the signed application form was posted only yesterday, again a Lloyds account has been used at application stage for the switch.

I also had to apply for a Virgin current account to use the now NLA 4.25% 1y fix ISA, which got fully funded. However, HSBC was unable to make a 16k transaction in one go (put 4k into the ISA the day before), spent over 1h on the phone with them and was unable to make that transaction via app r online banking. However, was able to make make several smaller withdrawals from HSBC to Virgin ISA directly and to Club Lloyds. So I bounced money through Lloyds for this and funded the ISA that way too. HSBC complaint was raised via chat a few days later, it was dealt with immediately via chat and got compensated with £50 straight and complaint closed after I accepted.

Now, since I have enough donor/burner accounts with Lloyds I though, amazing, another opportunity with Halifax for yet another £175 and the opportunity to make a 5er in rewards as well. Was even planning to increase the number to 3 reward accounts to make it £15 a month.

SO applied to Halifax on the 14th of March, initiated a switch at account opening with a Lloyds account as it was confirmed here it is possible and the T&S's also not specified anything further. Got a text straight away from Halifax Switching Team telling me they received my request and will be in touch soon. 

On the 15th in the morning I got another text confirming switch date of 23rd March and a phone number should I have any further questions. Happy days I thought. 

On 16th of March I received the letter with the registration code for online banking. Did all everything required in the evening and got a text that I have successfully registered for online banking. Since I was in and everything worked so smoothly and without issues with Lloyds the weeks before, I thought this is great and opened a regular saver via app. No issues. Thought I go ahead and open a classic current account as well to upgrade in a few weeks to a rewards account. Current account application was declined. 

On the morning of the 17th March I received a text:

Mr pecunianonolet. We've now completed some further checks on your Current Account application and decided to close this new account. You may still get a message from us saying we've accepted your application. You can disregard this and destroy any card or PIN you received for this account. We're sending you a letter to confirm the closure and explain the reasons for it in more detail. You'll receive this in the next few days. Thank you.

I was rather annoyed, so went on to the app and asked in chat and got a reference number and phone number. I did not raise a complaint, it was only an inquiry at this point. Phoned and explained the case and asked for more detail. The gentleman on the other side said he is checking and put me on hold for at least 3-4 minutes and then told me that I have not met some of the criteria. I was asking what they are and in what part I failed and the answer was that he is unable to let me know. I was telling him that I would like to appeal to this decision and that I happily take it to the ombudsman if I feel that I have not been treated fairly, that I am happy to provide proof of address, payslips and identity details such as my passport and anything else they might require. His answer was that he is unable to deal with this and that it will be forwarded to his manager to review. He confirmed that a letter was posted the previous day and should be with me soon and will contain some info and what next steps I can do. Fair to say, that he was not the most friendly person to deal with.

Going to be interesting to see what the letter will say and if it is identical to the one posted. I have had no other issues with Lloyds itself, all the accounts show a NIL balance with them, except of the club and standard reg savers having had been funded with their allowance for March. 

The reasons could be the same, too many new accounts opened in a short while and soon after switched away. However, what speaks against this theory is that the OH did more or less the same:

- New Metro account switch to Lloyds
- Natwest/RBS switch completed and incentives received last week using Lloyds donor accounts
- Ulster application signed and posted yesterday
- Halifax account opened and accidentally she put down the account details of the account we already switched to Natwest so this was obviously declined. Submitted a new switch request for another unused Lloyds account on Sunday, no comms since about the switch but account open and working
- OH not able to use First Direct as she had an HSBC switch incentive before


So the multi account opening/switching could be a reason but it might also be that I just had in general too many hard searches and account openings. I also had 6 credit cards in the last 3 months for stoozing, however, non with LBG.

On another note, had raised a complaint a few weeks back as my Experian credit file showed all Natwest Group searches as credit searches, non of their entries was marked as a current account search and I also had a search I was not recognising as it should have only been a soft search and not  hard search so asked them to investigate and clarify and if needed correct. I never applied for any overdraft. Natwest compliant was investigated and they initially thought this extra search could be fraud, I agreed to be investigated but said that I can't approve or deny of it and just wanted to get facts first. As a result, shortly after I was given the outcome that they checked and requested for 3 searches to be removed, however, this was subject to approval and may or my not happen and I need to check again in 3 months. I was also assured in writing, that no CIFAS markers are applied to my file. However, since that my credit cards disappeared from my RBS/Natwest account. No access to statements, amends or checks of repayment etc. RBS took some money beginning of the month and Natwest was supposed to but nothing happened. I have responded to the complaints advisor to clarify why the accounts disappeared, no answer for over a week when they usually tried to call after 1-2 days. Chased up on it again, that's now over 10 days ago, nothing and accounts still invisible.

I am a higher earner, can comfortably put £2000 a month aside for savings/repayments and in theory be able to repay my stoozing debt easily, never had a missed payment ever so in the eyes of banks I should be a trustworthy customer.

Bit of a longer story but hope it provides enough details so others not get caught or into similar trouble. 

Did you not think at any point you were massively taking the mickey? I would be expecting LBG to permanently shut the door on me if I had the gall to open 4 current accounts at once only to switch them away almost immediately, one to another LBG brand!

... I don't agree.

MSE'ers want to save money and the more astute want to make money, and in both cases want to give or take advice. pecunia as far as I can see has done nothing illegal and kept within the rules and T&Cs, the only thing he/she/they are guilty of is a little naivety.

Rather than siding with the LBG for being 'offended' by a customer, I am concerned about the consequences for pecunia and partner of these corporate actions.

Don't open several accounts at once, it's a bad idea. Opening several and then immediately switching away for incentives elsewhere is stupid. Including a switch to another brand within the same banking group goes beyond that.

That's what got me chucked out of RBS and NatWest.  I'd used two RBS accounts for switching bonuses elsewhere, but when I opened another one and tried to use it to switch to NatWest a week later, they closed all my accounts and banned me for life.  My own stupid fault.  

Same. But I managed to get 10 donor accounts out of them (all of which were switched to Yorkshire Bank for £150 a go).

Bridlington1

pecunianonolet said:

Postie just delivered the below for current account and savings account. Wording completly the same, just a different reference number. Quite different to the letter @Bridlington1 received. Opinions?

I received a near identical letter from TSB when I tried opening 5 current accounts in August. The rest of my accounts have continued functioning since then, though their systems went into meltdown. I haven't been able to open another TSB current account since though.

pecunianonolet

Bridlington1 said:

pecunianonolet said:

Postie just delivered the below for current account and savings account. Wording completly the same, just a different reference number. Quite different to the letter @Bridlington1 received. Opinions?

I received a near identical letter from TSB when I tried opening 5 current accounts in August. The rest of my accounts have continued functioning since then, though their systems went into meltdown. I haven't been able to open another TSB current account since though.

At least they not kicked you out and you got the yellow card first. I have opened two TSB accounts but 30 days apart, considered another one for the switch but the switch offer came around only a few days after the second TSB account was opened and they carry out a hard search for each account so I stayed away. Once the half year for Spend & Save bonus is over and I received Quidco cashback they are the next ones for any future switches. No intention to stay with them. OH was with them for years and only problems, bad service, etc. so it got switched last year to HSBC, no issues with HSBC since and service spot on. 

dealyboy

pecunianonolet said:

Bridlington1 said:

pecunianonolet said:

Postie just delivered the below for current account and savings account. Wording completly the same, just a different reference number. Quite different to the letter @Bridlington1 received. Opinions?

I received a near identical letter from TSB when I tried opening 5 current accounts in August. The rest of my accounts have continued functioning since then, though their systems went into meltdown. I haven't been able to open another TSB current account since though.

At least they not kicked you out and you got the yellow card first. I have opened two TSB accounts but 30 days apart, considered another one for the switch but the switch offer came around only a few days after the second TSB account was opened and they carry out a hard search for each account so I stayed away. Once the half year for Spend & Save bonus is over and I received Quidco cashback they are the next ones for any future switches. No intention to stay with them. OH was with them for years and only problems, bad service, etc. so it got switched last year to HSBC, no issues with HSBC since and service spot on. 

Tags: @pecunianonolet, @Bridlington1 ...

... and this is the point ... these banks and building societies are businesses, they are not charitable trusts, they are there to make money out of you and me, they don't like it when we do the same ... to coin a phrase 'they don't like it up 'em'.

But if they offer quality products, efficient and usable IT, acceptable security and excellent customer service ... as well as a good return ... we will stay, rate them, promote them ... win win!

SupaSava2000

Just to put my ten cents into this. I opened a business account with Bank of Scotland a few years back. I received the debit card and when I went to use it in a cash point it was retained. A few days later I received a letter identical to that received by pecunia from Halifax. Around a week after that I received the unholy trinity of text messages: one each from BoS, Halifax, and Lloyds telling me that my bank accounts were to be closed. Letters followed shortly thereafter.

I’d opened quite a few current accounts with all brands but shorty before or after the business account I’d opened four or five Lloyds savings accounts as “pots” for different things. Someone earlier in this thread mentioned the theory that opening new products in some cases leads them to taking a closer look at your activity. I go with that view.

Bridlington1

I went into my local Lloyds branch today and their response was as expected. They said that I am bared from opening a LBG account for life and that it was a decision taken by head office and cannot be overturned. They also said they had no contact details for the account closure team and had a bit of a moan about how these letters always tell you to go into branch when they can do nothing about it.