Bank account closed, very scared

confusedandscared1996

Hi everyone,

I'm in a tough spot and could use some advice. Last week, my bank account with First Direct was closed without any warning. I'm already dealing with about £18,000 in debt and planning to enter a Debt Management Plan because of high living costs.

I have autism, which makes financial management more challenging for me. After losing help from my dad, I took two payday loans last month.

After First Direct, I opened a basic account with NatWest, but it was closed the same day. I suspect it might be because of an old debt with RBS.

In a panic, I opened accounts with Barclays, TSB, and Nationwide over the Bank Holiday. Only Nationwide gave me a normal account; the rest are basic.

A friend mentioned I might be on a Cifas register which could explain the account closures. I didn't lie on any applications. I’m working full-time and studying full-time for an MSc, and I recently had to change jobs due to redundancy.  (on the applications I put down employed full time, which is true but I am also a FT student)

I'm really worried about not having a bank account, especially with my wages due at the end of the month. If these new accounts close too, I don't know what I'll do.

Has anyone been in a similar situation or have any advice on what steps to take next?

Thanks for any help you can provide, I am panicking so much right now.

confusedandscared1996

I forgot to mention, I submitted a DSAR to CIFAS today - the last day for me to submit a payroll request form will be this Friday, does anyone know how I can get my wages paid?

Voyager2002

Don't panic!

You opened a number of new accounts, so choose one of these to operate. There is no reason to believe that they will also be closed, and it would be unusual to close a 'basic' bank account.

First Direct seeks to attract a particular kind of customer, and it is very clear that you do not fit that profile. So they may well have made a commercial decision to close your account (although it is surprising that they did not give you any notice).

confusedandscared1996

Voyager2002 said:

Don't panic!

You opened a number of new accounts, so choose one of these to operate. There is no reason to believe that they will also be closed, and it would be unusual to close a 'basic' bank account.

First Direct seeks to attract a particular kind of customer, and it is very clear that you do not fit that profile. So they may well have made a commercial decision to close your account (although it is surprising that they did not give you any notice).

But why would the Natwest account have been closed down then? also which account should I use going forwards?

Voyager2002

confusedandscared1996 said:

Voyager2002 said:

Don't panic!

You opened a number of new accounts, so choose one of these to operate. There is no reason to believe that they will also be closed, and it would be unusual to close a 'basic' bank account.

First Direct seeks to attract a particular kind of customer, and it is very clear that you do not fit that profile. So they may well have made a commercial decision to close your account (although it is surprising that they did not give you any notice).

But why would the Natwest account have been closed down then? also which account should I use going forwards?

Maybe because of the old debt.

confusedandscared1996

Do you think its safe for me to use the tsb account - and give those details to my employer? I'm worried my account will be closed and I won't get paid,

confusedandscared1996

also just to add in the last 3 months my dad has sent me around 3000 pounds, do you think this could of caused it (he doesn't have the same surname) he is fortunate to have a well paid job so I know the money is from his boss, nothing "dodgy"

eskbanker

confusedandscared1996 said:

After First Direct, I opened a basic account with NatWest, but it was closed the same day. I suspect it might be because of an old debt with RBS.

In a panic, I opened accounts with Barclays, TSB, and Nationwide over the Bank Holiday. Only Nationwide gave me a normal account; the rest are basic.

If you literally mean 'basic' in the specialist sense of the term used within banking for current accounts offered to those who don't qualify for 'normal' accounts, these will generally only be made available to those who have no other account, so opening a string of them isn't typically supported and may result in closure, so you might wish to focus on the Nationwide one rather than the TSB?

CIFAS is the key - if you do have a CIFAS marker then any/all of them are subject to immediate closure, so the sooner you find out what's happening there the better.  The fact that FD closed an account without any notice isn't promising, and NatWest doing likewise may also be due to a CIFAS marker rather than old debt.

confusedandscared1996

eskbanker said:

confusedandscared1996 said:

After First Direct, I opened a basic account with NatWest, but it was closed the same day. I suspect it might be because of an old debt with RBS.

In a panic, I opened accounts with Barclays, TSB, and Nationwide over the Bank Holiday. Only Nationwide gave me a normal account; the rest are basic.

If you literally mean 'basic' in the specialist sense of the term used within banking for current accounts offered to those who don't qualify for 'normal' accounts, these will generally only be made available to those who have no other account, so opening a string of them isn't typically supported and may result in closure, so you might wish to focus on the Nationwide one rather than the TSB?

CIFAS is the key - if you do have a CIFAS marker then any/all of them are subject to immediate closure, so the sooner you find out what's happening there the better.  The fact that FD closed an account without any notice isn't promising, and NatWest doing likewise may also be due to a CIFAS marker rather than old debt.

Is there any way to find out if I have 1 sooner than waiting for the DSAR? also if I do have 1 what should I do? and is it possible to get my wages paid somewhere?

confusedandscared1996

also - silly question but is the CIFAS not searched when opening an account? if so why did they allow me to open them? (also am I allowed 4 accounts?)

born_again

confusedandscared1996 said:

Hi everyone,

I'm in a tough spot and could use some advice. Last week, my bank account with First Direct was closed without any warning. I'm already dealing with about £18,000 in debt and planning to enter a Debt Management Plan because of high living costs.

I have autism, which makes financial management more challenging for me. After losing help from my dad, I took two payday loans last month.

After First Direct, I opened a basic account with NatWest, but it was closed the same day. I suspect it might be because of an old debt with RBS.

In a panic, I opened accounts with Barclays, TSB, and Nationwide over the Bank Holiday. Only Nationwide gave me a normal account; the rest are basic.

A friend mentioned I might be on a Cifas register which could explain the account closures. I didn't lie on any applications. I’m working full-time and studying full-time for an MSc, and I recently had to change jobs due to redundancy.  (on the applications I put down employed full time, which is true but I am also a FT student)

I'm really worried about not having a bank account, especially with my wages due at the end of the month. If these new accounts close too, I don't know what I'll do.

Has anyone been in a similar situation or have any advice on what steps to take next?

Thanks for any help you can provide, I am panicking so much right now.

Alarm bells there..
Do you have a high level of debt with FD & not had contact with them about this. If you do, then normally that would be 60 day notice & a frozen account to force contact.
If not, that would tend to say they think something is wrong, breach of T/C or possible fraud.

TBH, might be better calling & asking them why. You may get a insight if it is debt related.