Lloyds group account closure

Loug777

Hi, I’ve banked with Lloyds for years. Raised a dispute over a payment and then out of the blue received a text saying;
Mrs xxxxx, we've reviewed your account ending 2362 and have made the decision to close any Lloyds, Halifax or Bank of Scotland bank accounts that are held in your name. You'll receive a letter shortly to explain the next steps. For further information, call 03453662004 and quote reference xxxxx
I rang to see what was happening to be told all they know is the account is closing in 60 days and although I can access online banking the account is blocked so no one can transfer money into me and I can go into branch with ID to access money from “wages or benefits” 
letter hasn’t arrived yet and no one in branch seemed to know anything about it. It’s my only account and I’m a single parent to a disabled baby surely I should be able to access whatever money is mine? 

Loug777

I’ve also done a CIFAS sar as I googled and said to check for markers but for what I have no idea 

mr_stripey

Banks can close your account for a number of reasons, but finding out the reason may be tricky.

What was the nature of the dispute you raised? Has this "spooked" them?

You should be able to receive the money in your account though.

You might want to try and apply for a bank account with a new bank - either a high street bank or someone like Monzo, Starling etc

WillPS

Anything on your bank account which could be mistaken for business activity? Regular large cash pay ins, payments you're receiving for doing services of some kind?

Bridlington1

First of all you have my sympathy. I had all of my LBG accounts closed a couple of months ago (though under very different circumstances by the sounds of things) so can fully appreciate that this will be a very stressful time for you. 

It gives me absolutely no pleasure to say this but by the sounds of things you've got a lifetime ban from LBG so you'll be very unlikely to be able to open another LBG account ever again. You may find on the letter they send you that it advises you to discuss the matter in branch. I would say save yourself a journey and don't bother as the branch staff will only know as much as you do about your account closure so it would be a wasted journey. 

Therefore I would say you should certainly open a new account elsewhere ASAP and arrange for all wages, benefits, bills etc to be moved over to it. If possible see if you can switch your current account using the CASS to your new account but if the old account is blocked, then you will likely have to move everything over manually.

You should be able to go into branch with ID and reclaim any wages/benefits that are paid into your account but you may also want to get hold of a 0% overdraft and/or a credit card if possible to act as a buffer in the mean time whilst you get everything sorted out. Regardless though you should receive a cheque for whatever's left in your Lloyds accounts shortly after they close the accounts in 60 days.

Going forwards I would say ensure you have at least one spare current account and savings with a different banking group that can be used as a backup if anything like this ever happens again.

Loug777

I raised a dispute over an Amazon purchase of baby milk I buy in bulk but Amazon couldn’t help as was a third party seller. The delivered but left in my bin which was emptied whilst my daughter was in children’s hospital. Lloyds have given me the money back that’s why I’m so confused!
I spoke to someone at Lloyds today and she said go in branch and see if they will let me open another account, which I definitely don’t want to do if this happens again! 

The only cash payments I get into my account are from my ex husband for my daughter
the account can’t be switched as it’s blocked or something they said. I can still view the account online banking but no money can be sent to me or by me.
just all very strange that I’ve had the account years never had any large amounts of money. 

My ex husband and I share the same name as not legally divorced he banks with Halifax and the mortgage on the house is Halifax so wondering if it affects him too?

trient

WillPS said:

Anything on your bank account which could be mistaken for business activity? Regular large cash pay ins, payments you're receiving for doing services of some kind?

Political views?...

But seriously - if the person that shall not be named can use a SAR and manages to extract a 40 page dossier on why their account got closed, maybe a member of the public do the same?

WillPS

trient said:

WillPS said:

Anything on your bank account which could be mistaken for business activity? Regular large cash pay ins, payments you're receiving for doing services of some kind?

Political views?...

But seriously - if the person that shall not be named can use a SAR and manages to extract a 40 page dossier on why their account got closed, maybe a member of the public do the same?

@Bridlington1 did this and while quite interesting to nerds like me it was pretty fruitless as fact-finding goes.

The amount of account notes a PEP gets at any bank compared to a typical customer and the amount of account notes a 'private' bank like Coutts makes typically about its customers compared to a retail bank operation of LBG are both probably significantly higher.

Would urge to leave the PEP related discussion there as it'll likely not help the OP and result in the thread being deleted.

WillPS

Loug777 said:

I raised a dispute over an Amazon purchase of baby milk I buy in bulk but Amazon couldn’t help as was a third party seller. The delivered but left in my bin which was emptied whilst my daughter was in children’s hospital. Lloyds have given me the money back that’s why I’m so confused!
I spoke to someone at Lloyds today and she said go in branch and see if they will let me open another account, which I definitely don’t want to do if this happens again! 

The only cash payments I get into my account are from my ex husband for my daughter
the account can’t be switched as it’s blocked or something they said. I can still view the account online banking but no money can be sent to me or by me.
just all very strange that I’ve had the account years never had any large amounts of money. 

My ex husband and I share the same name as not legally divorced he banks with Halifax and the mortgage on the house is Halifax so wondering if it affects him too?

Could be, I suppose. Is there still a financial relationship with him recorded by credit agencies? You can check this for free on MSE Credit Club (Experian), Clearscore (Equifax) and Credit Karma (Transunion). Where any exists apply for a notice of correction and seek to get the underlying accounts either closed or delinked.

Be pragmatic and get alternative banking facilities set up ASAP. Monzo, Starling and Chase are great choices as they'll get an account open and somewhat usable (at least for transfers, setting up DDs etc) immediately if they accept your application. 

In terms of finding out what's gone on, you can do that in the weeks to follow but to manage your expectations LBG are not known for backing out of an account closure decision, so it's important you accept that your Halifax account probably isn't going to be restored.

DullGreyGuy

Loug777 said:

I’ve also done a CIFAS sar as I googled and said to check for markers but for what I have no idea 

CIFAS would hold data on if you have been identified as committing a various range of frauds but also if you have been the victim of identity fraud or a third party gained control of your account etc.

You can also check with the credit reference agencies who will show any "victim" markers but wont show you any markers if you are the accused. Whilst you are there you can also check if you have any "financial links" listed to other people.

NW closed my accounts many years ago but it was because my Ex got into trouble with them but we still had a loan in joint names (fully up to date on payments) they still associated us and so closed my accounts too. 

Loug777

We are separated but he’s still my husband in legal terms and he has a single account and mortgage with Halifax that isn’t linked to me so I’m presuming it won’t affect his accounts with Halifax? We do have a joint account with virgin that I haven’t used since we separated so that link is on my credit report.
haven’t had the cifas report back yet and can’t see anything on my report at the moment.
I have opened a Monzo account online that was pretty straight forward just have to manually transfer direct debits etc as Lloyds won’t let me do a switching service due to the block on the account. Just annoying and inconvenient with a disabled baby and direct payments still going into the account so I have to physically go in branch which isn’t local and withdraw in person if they even let me I don’t know.