Halifax/Lloyds closing my account in 60 Days!! Extremely worried about CIFAS

HillStreetBlues

https://forums.moneysavingexpert.com/discussion/comment/81875621#Comment_81875621

I think you might be getting mixed up with fraud, where is there are legal rules that have to be followed.

Placitasgirl

Legally there is no reason why Halifax can’t tell you what they feel you did that conflicted with their Terms & Conditions, though they may wish not to do so. They can do business with whomever they choose and don’t have to tell you why they made the choice not to do so and to close your account. One of the most common breaches is using the account for business transactions, for example. You simply haven’t “played by their rules” for the account you hold.

Where there is a suspicion or suggestion of money laundering or fraud banks are legally not permitted/are forbidden from telling you what has aroused their suspicions and this is termed “Tipping Off”. Bank staff can be dismissed for doing this. In the case of suspected fraud/money laundering they would close the account in 60 days or give you any notice; it would be closed immediately

EarthBoy

From 1 April banks will have to tell you why they're closing your account.

https://www.gov.uk/government/news/millions-of-people-and-businesses-protected-against-debanking

eskbanker

https://forums.moneysavingexpert.com/discussion/comment/81875843#Comment_81875843

The new regulations relate to accounts opened (or applied for) from 28 April 2026:

https://www.legislation.gov.uk/uksi/2025/688/contents/made

Shakin_Steve

https://forums.moneysavingexpert.com/discussion/comment/81875843#Comment_81875843

Providing it doesn't involve 'tipping off'.

sheramber

The measures will be subject to certain exceptions, for example, to enable payment service providers to comply with their obligations under financial crime law.

https://www.gov.uk/government/news/millions-of-people-and-businesses-protected-against-debanking

Shakin_Steve

https://forums.moneysavingexpert.com/discussion/comment/81875861#Comment_81875861

I'm a bit concerned/confused by this statement:

• Application to New Contracts: The new regulations apply to contracts agreed on or after 28 April 2026. 
• 
  Does this mean the regulations will only apply to accounts opened after this date?

Shakin_Steve

Found this on google, although I'm not saying it's absolutely true:

• Existing Accounts (opened before 28 April 2026): These accounts will remain subject to the older, existing requirements, which generally only require a two-month (60-day) notice period.

eskbanker

Yes, the regulations (linked on the previous page) are fairly self-explanatory:

Termination of framework contract entered into before 28th April 2026

51A.—(1) The payment service provider may terminate a framework contract concluded for an indefinite period and entered into before 28th April 2026 by giving at least two months’ notice, if the contract so provides.

(2) Notice of termination given in accordance with paragraph (1) must be provided in the same way as information is required by regulation 55(1) (communication of information) to be provided or made available.

Termination of framework contract entered into on or after 28th April 2026

51B.—(1) Before terminating a framework contract concluded for an indefinite period and entered into on or after 28th April 2026, the payment service provider must provide the payment service user with a notice of termination.

(2) The notice of termination must—

(a) contain an explanation of the reasons for termination which is sufficiently detailed and specific to enable the payment service user to understand why the framework contract is being terminated;

(b) be provided in the same way as information is required by regulation 55(1) (communication of information) to be provided or made available;

[…]

(3) The notice of termination must be provided at least 90 days before the termination is to take effect.

Shakin_Steve

Not of much use to most people, then.