Lloyds TSB - Amazingly ridiculous account closure - Any Advice?

jollygood_3

I got 3 letters at the beginning of March from Lloyds TSB (all 3 were exactly the same, one for each account). I have a student account, online saver, and a classic account. The letter stated that Lloyds TSB is no longer able to run a bank account for me and that they would be sending me a cheque in one months time. No reason was given as to why.

At first I thought it was a joke, I haven't done anything wrong. I have tens of thousands of pounds which I have accumulated through legit business enterprises over the 4-5 years I've been a Lloyds TSB customer. So I initially thought that maybe it was because I had such a high amount of money in a student account? But is that really a reason to close an account?

So the next day I went in branch and the woman on the front desk was quite rude to me, and treated me like I'd done something wrong. She said it 'might' be due to erratic spending, but 90% of the money moving was from my Student account to my Online Saver... She couldn't tell me why they were closing my account, she couldn't even tell me how to find out the reason.

As my local branch couldn't help me, I rang phonebank. I got through to a really helpful lady (didn't get her name though) who phoned the branch and found out that my account was closed due to my identification not being faxed through correctly by the branch when I opened my third account about a year ago. She said she used the passport photocopy which my bank took when I recently sent a TT, and that everything was sorted, my accounts were not being closed, nothing to worry about, is there anything else she could help me with. Great.

Then April rolls round and my card is declined at my local petrol station. I get home, check my balance and there's no cash in my accounts. I phone up and my accounts have been closed. I speak to MANY people on phonebank over 2-3 hours and have many apologies and promises made to me. To cut a long story short, I'm told by the Senior Manager at the call center (name: Deb Ellery) I need to go into my branch the next day because the reason my account was closed can not be disclosed over the phone.

I go into branch, they tell me my account was closed because a letter was sent to me in December, telling me I should go in branch for an account review. I tell them I was out of the country from most of December until late February and therefore didn't receive this letter (they check my bank statements and my story checks out). They then say that there's nothing they can do for me. At this point I'm fed up of dealing with people who have no power, so I get the manager. She takes down all my details and is apparently going to ring me tomorrow. She said it may be due to me having £XX,XXX in a student account, but I'm not a student, I didn't ask for a student account - it's just what I was given. Even so, is that really a valid reason to close an account?!?

What I don't understand is:

• Why didn't they phone me to tell me to go into an account review if it was such a big deal?
• I went to an account review about 2 years ago, it was just some bloke trying to sell me Scottish Widows (Lloyds TSB owns them) pensions and financial schemes - I'm 19, I don't want a pension.... is missing this sales presentation really a reason for closing an account?
• I was in the branch several times from December - February (as I came back to the UK a few times), I even exchanged currency and withdrew some money, they didn't once tell me I needed an account review, surely if it's such a big deal, it would flag when they take my bank details inside the branch itself?
• I went into branch THE DAY AFTER I was first informed about my account closure, I ASKED at the branch what it was about and what I should do - they failed to provide me with any details as to why or what I should've done. What more could I have done?
• I'm still none the wiser as to why my account was closed, I've been given many different stories from different employees, but all of them are simply 'guesses'
• Why was I told over the phone by a Lloyds TSB employee that my account was not going to be closed?
  

What makes it even worse is that they sent my cheque for £xx,xxx second class delivery, meaning I'm without a bank account, debit card, direct debit payments and everything else for a few more days, all for the sake of them saving a few pence.

I will no longer bank with Lloyds TSB but I definitely want to escalate this with the Financial Ombudsman. Does anyone have any comments, suggestions, or advice?

jonesMUFCforever

As we have heard only one side of the story we cannot possibly comment.

How can I put this? your legitimate business activity may be determined not to be ??
You may have been investigated for something??

You were given a month's notice so why did you not make alternative arrangements?
They can do this and they can do it without giving you a reason - this is why possibly you have been given the runaround by so many people - nobody wants to tell you what the bank thinks it knows about you.
The original letters advising you of the account closure would not have come from the branch but from a department. I would chase it up from here - not by phonebank - all they can do is read your notes on file - the reason the accounts were closed will not be on there as you could do a Data protection act enquiry and those notes would form part of the reply.

Your comment about being given a student account does not really ring true as you would have had to give confirmation of your course to the bank at account opening.

Hoping that I have not been wasting my time here and that you are not a troll!

exel1966

Could using a student account for business purposes be the reason for closure ?

jonesMUFCforever

If he's lied about himself on any application then yes it could be a reason to close his accounts.

PROLIANT

exel1966 wrote: »

Could using a student account for business purposes be the reason for closure ?

Then why close all of the accounts? Sounds like an "Enemy of the state" treatment to me, if I were you I would put your money somewhere else, try an offshore account with a European bank.

exel1966

I've no idea, hence the Q, and yes at face value it does appear very harsh, but as pointed out above it's just one side of an obviously complicated story and I'm sure LLoyds don't close customers accounts without very good reason. Maybe there is some CIFAS involvement here ?

asea

Perhaps they suspected you of moneylaundering & that is why they wanted you to come into a review, they might have thought it was damage limitation (from their own perspective) perhaps?

pboae

jonesMUFCforever wrote: »

Your comment about being given a student account does not really ring true as you would have had to give confirmation of your course to the bank at account opening.

I had a student account with Barclays at 16, even though I was working and not a student. They said it was because I was under 18. That was years ago though, so things might have changed.

efallai

jollygood wrote: »

I have tens of thousands of pounds which I have accumulated through legit business enterprises over the 4-5 years.............

......I'm 19, I don't want a pension....

Just out of interest, how have you been accumulating tens of thousands of pounds through "business enterprises" since the age of 14?

dunstonh

There are inconsistinces in your post which dont back up what you are saying.

For example:

you said: I tell them I was out of the country from most of December until late February and therefore didn't receive this letter.

However, you go on to say: I was in the branch several times from December - February (as I came back to the UK a few times)

Clearly you had the opportunity to query the letters that were sent within an acceptable timescale.

I was in the branch several times from December - February (as I came back to the UK a few times), I even exchanged currency and withdrew some money, they didn't once tell me I needed an account review, surely if it's such a big deal, it would flag when they take my bank details inside the branch itself?

Do you think that the cashier or foreign services clerk gets involved in account management?

If you intend to take your complaint to the FOS then it is sensible not to make your comments so full of holes and inconsistences. However, banks are stupidly paranoid about service nowadays and give in even when they are not in the wrong in things like this so it will probably not get that far and Lloyds will cave in all apologetic.

olly300

dunstonh wrote: »

If you intend to take your complaint to the FOS then it is sensible not to make your comments so full of holes and inconsistences. However, banks are stupidly paranoid about service nowadays and given in even when they are not in the wrong in things like this so it will probably not get that far and Lloyds will cave in all apologetic.

The OP can't take their complaint to the FOS until they have made a formal complaint to Lloyds by following their complaints procedure. I suggest OP, you find a copy - look at your accounts terms and conditions or online - and follow it. If you need to send letter then use recorded delivery to ensure it doesn't get "lost" in the postal system.