Bank not letting me close business account....

James3D

This really sucks,

I made another post about this but rang the bank today.
The black horse bank (no more needs to be said),
told me I cannot transfer my business loan D/D repayments to my personal account (not much left on it at the moment),

I want to close my business account, a) as I am only a freelancer
b) I am looking to get a job in a larger company.
Also business account charges me about £7 a month for service charges.

I also since found out that if you a freelancer, you dont actually need legally to have a business account, you can have a normal account, as long as your NICs are D/D from that each month.

9 to 10 years ago, I distinctly remember the business adviser telling me that I legally had to open a business account.

So the last 9 to 10 years, I was charged needless service charges.
Ok not my fault for not finding this out.

But, now they tell me as ITS A BUSINESS LOAN, I CANNOT TRANSFER IT TO ANOTHER ACCOUNT AS ITS A DIFFERENT 'PRODUCT'.

What a load of rubbish, sorry how easy is it to change the D/D?
So now I have to pay the loan back this year till its paid off but also pay the service charge.

Any suggestions? Or am I trapped?

Godders

Hi, Martin’s asked me to post this in these circumstances: I’ve asked Board Guides to move threads if they’ll receive a better response elsewhere(please see this rule) so this post/thread has been moved to another board, where it should get more replies. If you have any questions about this policy please email [EMAIL="abuse@moneysavingexpert.com"]abuse@moneysavingexpert.com[/EMAIL].

I know that your question was also about a business loan, but I thought your bigger issue was the business account not being needed. Hope this is OK

jonesMUFCforever

Business accounts and personal accounts with the black horse bank are run on two separate systems.
They do not mix. You can't pay a business loan from a personal account or a personal loan from a business account.
You could see an adviser at the bank (personal) to see if they will give you a personal loan to repay your business loan but I think the interest rate will be higher for you.

I would also suggest that you contact your business manager to see if you are on the cheapest tariff available.

James3D

Ok but I still cannot understand how they simply cannot just D/D the business loan from my personal account, its surely the same as any D/D ie HP, bills etc.

I all seems like a dodgy reason to me, I apologise if there is some major thing that prevents the 'mixing' but I just cannot see it.

Thanks for advice though I will have another word with my advisor to see if I can lower the monthly bank charge.

Im no way looking into a personal loan to replace this business one, you should have seen the set up charge for the business loan (Yes I was younger, I am sure many gloss over things).

Oh well, I guess all these little charges are making top bankers get nice bonuses, I hope they enjoy my money.

jonesMUFCforever

Don't forget your bank charges can be set off your income when coming to calculating your profits and tax payable.

olly300

James3D wrote: »

Ok but I still cannot understand how they simply cannot just D/D the business loan from my personal account, its surely the same as any D/D ie HP, bills etc.

It's because not everyone with a business account is freelancer like you who is allowed to mix their business and personal finances, and not get into trouble with HMRC. If you run a limited company or a charity, that organisation is a separate legal entity from you and as different laws apply to those organisations companies like banks, shops and telecoms operators set up different systems to deal with business and personal customers.

Yes you have been screwed by black horse but unfortunately until the internet came about lots of people where being screwed by large companies who relied on their ignorance to extract money out of them.