Bank Accounts Closing

ZJT

I was a customer of HSBC for 12 years, perfect credit history, transfers from only friends and family & mainly small amounts- nothing that would ever ben flagged & the source of those funds are also completely and utterly legitimate. When closing my account, HSBC sent me a letter (that I never received). I already had a Halifax current account so I just switched everything to that and didn't fight HSBC- because I know I have done nothing wrong so I thought with AI ramping up it is what it is. Then, 3 weeks later I got a text from Halifax telling me that they're also closing my 3 accounts I have with them- Halifax again wont tell me the reason.

I have done a CIFAS and Hunter SAR and both have come back clear, no indication of fraud- my credit history is as clean as a whistle and I can see NOTHING against me whatsoever.

I am petrified that accounts are just going to be closed and closed, limiting my mortgage options in the future with highstreet banks and causing even more stress than has already been caused. I've had to take time out of work to sort this out every time it has happened

I think it is disgraceful that banks wont disclose why they're closing accounts- what with consumer duty & treating customers fairly from the FCA- this couldn't be further from the opposite of those 2 rules. The stress is has caused me is immense, and if I didn't have family to cover me whilst the accounts and closed and funds are transferred- I would've had defaulted payments which would then go against my perfect credit score and history.

Where else could I possibly go to for help on this? 

Isthisforreal99

"Completely and utterly legitimate" does not neccessarily mean in accordance with the Terms and Conditions of the account. How many transfers for friends and family are we talking? 'Small amounts' make no difference if there are literally dozens. What were the transfers actually for?

When was the HSBC account closed? If you have been given a CIFAS marker maybe it takes time to show?

Nasqueron

Banks are overly cautious about tipping off rules, they can't tell you why in case they get done later for assisting fraud

born_again

ZJT said:

I was a customer of HSBC for 12 years, perfect credit history, transfers from only friends and family & mainly small amounts- nothing that would ever ben flagged & the source of those funds are also completely and utterly legitimate. When closing my account, HSBC sent me a letter (that I never received). I already had a Halifax current account so I just switched everything to that and didn't fight HSBC- because I know I have done nothing wrong so I thought with AI ramping up it is what it is. Then, 3 weeks later I got a text from Halifax telling me that they're also closing my 3 accounts I have with them- Halifax again wont tell me the reason.

I have done a CIFAS and Hunter SAR and both have come back clear, no indication of fraud- my credit history is as clean as a whistle and I can see NOTHING against me whatsoever.

I am petrified that accounts are just going to be closed and closed, limiting my mortgage options in the future with highstreet banks and causing even more stress than has already been caused. I've had to take time out of work to sort this out every time it has happened

I think it is disgraceful that banks wont disclose why they're closing accounts- what with consumer duty & treating customers fairly from the FCA- this couldn't be further from the opposite of those 2 rules. The stress is has caused me is immense, and if I didn't have family to cover me whilst the accounts and closed and funds are transferred- I would've had defaulted payments which would then go against my perfect credit score and history.

Where else could I possibly go to for help on this? 

Even payments such as that can be classed as ML, Most mule accounts are sending money to so called friends. Bank does not know who the payments are too & their relationship to you 🤷‍♀️
Have these people also had accounts closed?

Banks can not legally tell you the reason (Staff member can be jailed & bank fined massive amounts). Best guess is how long they give before you get closed down.
Straight away is serious. Longer then could just be that they no longer want you as a customer, or that someone that has been sending money has had theirs closed & you have been caught in the fallout.

All you could do is complain to the bank & then go to FOS if not resolved. But do not expect a quick or positive outcome. 

Ergates

Nasqueron said:

Banks are overly cautious about tipping off rules, they can't tell you why in case they get done later for assisting fraud

The penalty for tipping off is up to 5 years in prison AND an unlimited fine.  I can't say that, with that in mind, they're being "overly" cautious.   How much prison time would *you* be willing to risk to answer a customer's question?

Nasqueron

Ergates said:

Nasqueron said:

Banks are overly cautious about tipping off rules, they can't tell you why in case they get done later for assisting fraud

The penalty for tipping off is up to 5 years in prison AND an unlimited fine.  I can't say that, with that in mind, they're being "overly" cautious.   How much prison time would *you* be willing to risk to answer a customer's question?

I say overly cautious because tipping off is meant to be for people actively under suspicion of fraud, such as the account being frozen for investigation, not just refusing to tell someone why their bank account was closed  

eskbanker

ZJT said:

Where else could I possibly go to for help on this? 

As above, complaints and FOS are the obvious route, but you could also submit SARs to both banks to seek all personal data they hold about you, and in particular anything relating to their decisions to close your accounts - if you haven't seen correspondence that they allege was sent then this should be part of the scope.  If they are acting under AML legislation, etc, then they'll probably claim exemptions from disclosure, but nothing to lose by asking.

GTR_King

Something you’ve done has triggered the AML fraud alert! That’s why your account was closed straight away. Nothing can be done until CIFAS complete their investigation!

That why you can’t see any fraud markers at the moment only the banks can for now! Once the investigation has been completed you will be able to see it! 

The bank will rarely remove the marker unless you can prove 100% that the transfers are legitimate by showing where the money came from by asking the people who sent it to you! 

You’re looking at up to 6 years where you can only bank with limited‑option providers like pre paid cards etc! 

We need to hear the full story about what actually happened—don’t leave out any details 

HillStreetBlues

I do feel it should be more open. You been found "guilty" ask why,  can't tell you that!

GTR_King

HillStreetBlues said:

I do feel it should be more open. You been found "guilty" ask why,  can't tell you that!

Agreed they can’t tell you anything but you will know what likely caused it & there is nothing you can do unfortunately!

Looking forward to hearing ZJT full truthful answer 

have a great Saturday evening 😊

Kim_13

No one can ever say that the source of their funds are completely and utterly legitimate, unless they never accept friend and family transfers into their accounts - which you admit you do.

You may have legitimately been owed money, but the bank still have to act if someone else has paid you with funds that weren't legitimate. We can only say that others absolutely haven't come into funds they shouldn't have if helping them with their finances and knowing the ins and outs.

If I had received notice of closure, the last thing I would do would be to switch that account into another as that creates a connection between an account that might have been innocently caught in a chain the bank were looking into and another. But if it turns out you do have a marker, then the second account would eventually have closed whether you had switched into it or not. In that case, there will be no more mainstream accounts until such time as the marker is challenged and removed or expires.