Closed Account Error

Carlthemedic · 21 July 2018 at 6:03PM

Please help. My bank (nat west) closed my current account in error last month. This means that I couldn't access any money, my credit card was instantly suspended and all my Direct Debits were immediately cancelled. Although they have admitted it, they do not realise how destitute and desperate I was. My wife was just about to apply for a Visa from her home country costing £3000, my DD costing £700 as well as all my monthly bills were now non-gratis. We became very anxious, worried and even sick for weeks trying to sort it out. Resulting in multiple threats from cancelled DD companies, loss of use of my car, phone, Internet and insurances. Nat West said it could take up to a month to reverse and even though I could get cash from a branch, I realised very quickly how difficult life is without on-line payments, financial banking or shopping. I have numerous examples of their broken promises. It took over 3 weeks of continued badgering, pleading and begging to get them to sort it, with only a letter admitting their errors. What can I do? Can I claim compensation? Should I consider further action.

18cc · 21 July 2018 at 6:08PM

Yes you can definitely claim compensation submit a complaint immediately

what you should also do is open at least one other current account with other banks so that you are not in the position of not having an account

xylophone · 21 July 2018 at 6:10PM

You have made a formal complaint in writing to Natwest ?

You have a final response?

You are not satisfied?

If the above is the case, you can approach the FOS.

http://www.financial-ombudsman.org.uk/

If you have not yet made a formal complaint the address is

Customer Relations Manager

Bede House

11 Western Boulevard

Leicester

LE2 7EJ

https://personal.natwest.com/personal/support-centre/how-to-complain/complaints-contacts.html

Flobberchops · 21 July 2018 at 9:40PM

Unlike the other (Joe Pasquale voice) "I think I'm entitled to compensation" thread I commented on today, I would certainly agree that the bank's error here has caused you a fair bit of inconvenience. If it were me sitting behind the desk when you lodged a complaint, I would agree you should receive compensation in respect of:
- Any fees or penalties incurred for non-payment or late payment of DDs
- Extra costs for replacement transport, phone and internet
- Covering the costs of any time taken off work to resolve the situation, phone calls to your bank, transport costs for any trips made to the bank
Plus a goodwill payment in recognition for the distress and inconvenience caused to you.

Now, only you (and perhaps your bank) can put a figure on exactly what all that should come to. I would advise you to try your best to itemise as much of the above as possible to present to your bank an indicative picture of exactly what their error has cost you. Definitely ask them to log a formal complaint, escalate it if it can't be resolved in branch, and don't forget you have Financial Ombudsman rights as a last resort. I don't feel it will come to that though as the bank seems to be admitting liability.

In the meantime I hope you have opened a secondary bank account and are aiming to build a couple of months living expenses there as an emergency fund if something similar happens in future.

[Deleted User] · 21 July 2018 at 9:43PM

What was the reason why they stated they closed it?

There!!!8217;s more to this than what!!!8217;s being let on

EssexExile · 21 July 2018 at 10:09PM

Flobberchops wrote: »

Unlike the other (Joe Pasquale voice) "I think I'm entitled to compensation" thread I commented on today, I would certainly agree that the bank's error here has caused you a fair bit of inconvenience...

Interesting that they both concern Natwest. Not surprising though.

Carlthemedic · 25 July 2018 at 12:40PM

They've offered me £150. What should I do...?

JuicyJesus · 25 July 2018 at 12:44PM

Carlthemedic wrote: »

They've offered me £150. What should I do...?

I'd ask for more. This was their mistake and it had serious potential - and importantly, reasonably foreseeable - consequences for both your wife's visa and your credit rating in that your bills went unpaid. That they stonewalled you on dealing with it and made you chase them up for three weeks is worse.

I don't usually say "yeah that's too little" but I think £150 is a lowball offer for this and you would be within your rights to ask for more and if they refuse go to FOS. I'd say at least double that is reasonable.

eskbanker · 25 July 2018 at 1:07PM

I'd endorse the approach recommended by Flobberchops in post #4 above, i.e. calculate a meaningful value for each of the different impacts their error and subsequent delayed reaction caused, plus something reasonably substantial on top to reflect stress, inconvenience, etc.

Also worth checking how your credit files look and ensuring that NatWest accept responsibility for correcting any effects there.

Closed Account Error

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