LBG closing all my accounts on 18th May

masonic

dealyboy said:

Ed-1 said:

dealyboy said:

I've not breached any rules any terms and they would be breaching my contract to have the account closed

However if I willfully breached terms and conditions then the other party would be within their rights to end the relationship. 

All banks have a right to terminate the contract at any time by giving (usually) at least 60 days notice, just the same as the customer has a right to decide not to do business any more with that bank. Banks don't need a reason for doing this.

Are you telling me they don't have to follow contract law? are they above the law? I don't think so.

They set out what rights each party has to dissolve the contract within the contract, which is agreed by both parties. There are laws that take precedence over contract law, but in this case, it is the contractual right that a company will use.

GTR_King

Personal accounts for self employed/business= big no no breaking their T&C’s 

That usually triggers a 60 days till closure

Bridlington1

It's just occurred to me, Scottish Widows will be next to go so it looks like I'll be switching my BOS donor account to RBS to replace the DDs.

AndyTh_2

I'd say 4 made them look and see 2 (biggest factor) and 1. Lots of people get banned by opening up many short lived accounts for switching.

There really is no rush in bank switch bonuses as you can't apply to get them again for usually for 3-5 years after getting the bonus, so is best keeping a few accounts from previous switches around for a while to use as future donors.

born_again

dealyboy said:

Ed-1 said:

dealyboy said:

I've not breached any rules any terms and they would be breaching my contract to have the account closed

However if I willfully breached terms and conditions then the other party would be within their rights to end the relationship. 

All banks have a right to terminate the contract at any time by giving (usually) at least 60 days notice, just the same as the customer has a right to decide not to do business any more with that bank. Banks don't need a reason for doing this.

Are you telling me they don't have to follow contract law? are they above the law? I don't think so.

Like any company. A bank has the right to service who they wish.

dealyboy

"

Why choose our FlexDirect

• Get interest on your money

  5% AER (4.89% gross a year) in-credit interest fixed for 12 months on balances up to £1,500. You’ll need to pay in at least £1,000 a month, not counting transfers from other Nationwide accounts or Visa credits. After the first 12 months, it’s 0.25% AER (0.24% gross a year) variable. Interest is calculated on the last day of each month and is paid on the first day of the next month.

"

Consumer Rights Act 2015 Part 2.

62 Requirement for contract terms and notices to be fair

(1)An unfair term of a consumer contract is not binding on the consumer.

(2)An unfair consumer notice is not binding on the consumer.

(3)This does not prevent the consumer from relying on the term or notice if the consumer chooses to do so.

(4)A term is unfair if, contrary to the requirement of good faith, it causes a significant imbalance in the parties’ rights and obligations under the contract to the detriment of the consumer.

AmityNeon

Bridlington1 said:

That'll probably explain it then. In January I opened 5 Club Lloyds savers as well as 3 current accounts within LBG (1 with each bank) and have been bouncing £1 through them for the YouGov finance points ever since. My suspicion is now that this has tipped them over the edge. I never thought much of it at the time as I was able to open 3 Halifax reward accounts in a single day last spring but evidently LBG have taken offence by this.

As it's likely an internal commercial decision, I would surmise it's a combination of the overdraft stoozing and the nine(?) current accounts opened within the space of a year (six of which were promptly switched away), in conjunction with a lack of holding any products from which they can profit (e.g. mortgage, credit cards), as well as perhaps not having a long-standing history.

Did they provide any possible avenue for you to potentially explain or appeal? It's terribly unfortunate when an institution makes a final decision of lifelong permanence, without prior warning or providing any form of recourse. At least Skipton BS sent a written notice of admonishment to those regularly depositing via 15+ different debit cards per month over an extended period.

Your experience with Barclays is even more perplexing considering you held the accounts for barely a month or so, and presumably, there was nothing to remotely suggest why they allowed the accounts to be opened, only to forcibly have them closed soon after.

ForumUser7

Sorry to hear all this @Bridlington1 - Probably worth, as @amityneon says, appealing and telling them what is going on re Barclays in case that caused it. Also let Barclays know, and the FOS if you raise it with them, in case that caused this.

masonic

dealyboy said:

"

Why choose our FlexDirect

• Get interest on your money

  5% AER (4.89% gross a year) in-credit interest fixed for 12 months on balances up to £1,500. You’ll need to pay in at least £1,000 a month, not counting transfers from other Nationwide accounts or Visa credits. After the first 12 months, it’s 0.25% AER (0.24% gross a year) variable. Interest is calculated on the last day of each month and is paid on the first day of the next month.

"

Consumer Rights Act 2015 Part 2.

62 Requirement for contract terms and notices to be fair

(1)An unfair term of a consumer contract is not binding on the consumer.

(2)An unfair consumer notice is not binding on the consumer.

(3)This does not prevent the consumer from relying on the term or notice if the consumer chooses to do so.

(4)A term is unfair if, contrary to the requirement of good faith, it causes a significant imbalance in the parties’ rights and obligations under the contract to the detriment of the consumer.

The contractual term being discussed is fair because it is balanced in favour of the consumer. The consumer does not need to provide notice but the firm does. The consumer should rely on the term about ending the relationship in the contract, because it is fair.

You seem to be confusing the term "term", which refers to a clause in an agreement with the "term" of an interest rate, which is the length of time that rate applies. If either party close an account while it is within a particular interest term, it is of no consequence, because there will be zero balance in the account upon which to earn interest. The rate will be unchanged.

Bridlington1

AmityNeon said:

Bridlington1 said:

That'll probably explain it then. In January I opened 5 Club Lloyds savers as well as 3 current accounts within LBG (1 with each bank) and have been bouncing £1 through them for the YouGov finance points ever since. My suspicion is now that this has tipped them over the edge. I never thought much of it at the time as I was able to open 3 Halifax reward accounts in a single day last spring but evidently LBG have taken offence by this.

As it's likely an internal commercial decision, I would surmise it's a combination of the overdraft stoozing and the nine(?) current accounts opened within the space of a year (six of which were promptly switched away), in conjunction with a lack of holding any products from which they can profit (e.g. mortgage, credit cards), as well as perhaps not having a long-standing history.

Did they provide any possible avenue for you to potentially explain or appeal? It's terribly unfortunate when an institution makes a final decision of lifelong permanence, without prior warning or providing any form of recourse. At least Skipton BS sent a written notice of admonishment to those regularly depositing via 15+ different debit cards per month over an extended period.

Your experience with Barclays is even more perplexing considering you held the accounts for barely a month or so, and presumably, there was nothing to remotely suggest why they allowed the accounts to be opened, only to forcibly have them closed soon after.

Here is a copy of the letter I got from Halifax. It doesn't look like there's any way back.


The Barclays closure doesn't surprise me too much as it was a student account. I used to hold a TSB student account but when Barclays launched their rainy day saver and I decided to switch my TSB student account to Barclays as Barclays won't let students open their standard bank account. When in branch they told me that I could open the Barclays student account as long as I closed the TSB student account shortly after opening the Barclays student account (I closed the TSB student account about half an hour of opening Barclays).

As a result I held two student accounts for around half an hour that day, which was against Barclays's Ts&Cs so the account was closed 17 days later. They refused to tell me exactly why they closed the account but I'm pretty sure it was that.

The only thing that puzzles me about Barclays is why the default? The account was in credit for its entire duration, indeed I have the account's only statement to prove it. Barclays are denying that they put it on there on the grounds that there was no OD facility to default and the CRAs are saying they are only reporting what they've been told by Barclays.