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  • FIRST POST
    • lopsyfa
    • By lopsyfa 13th Apr 19, 11:24 AM
    • 114Posts
    • 53Thanks
    lopsyfa
    Lloyds, Halifax and MBNA account closure
    • #1
    • 13th Apr 19, 11:24 AM
    Lloyds, Halifax and MBNA account closure 13th Apr 19 at 11:24 AM
    Long story but I will try to be brief.

    I received 4 letters dated 05-April-2019 from Halifax and Lloyds that they are closing my 4 accounts with them (1 club Lloyds have had since 2009, 2 credit cards with Lloyds and 1 Halifax reward account) three days ago with 65 days notice. So I called the customer service and was told I need to go to branch to appeal so I took time off work but when I got to the branch (LLoyds) the manager said there is nothing she can do, i just need to wait for the 65 days before the account is closed but the account will operate as normal. I reiterated that the customer service said I should come to the branch but she said "sometimes the people on the phone don't know anything. So she just fobbed me off". She told me call the number on one of the letter.

    I called the number as she said and got through to the customer service department and was told the manager is wrong. They will call the manager and make sure she understands. He tried to call but couldn't get through but he sent an email to ask her to call me. I asked whether I could try another branch, maybe a Halifax and he said yes. He called and also couldn't get through but also sent an email to the manager. So I drove straight to the branch. Initially they wouldn't let me see the manager, the lady said nothing they can do in branch but I insisted your customer service told me to come. After waiting 30 minute, the manager said the same as the previous manager and that is nothing I can do. Your account looks normal, it is business decision. I asked him why they keep sending me around if I can't appeal, he said I can raise complaint for you. I said no, I can raise complaint myself ( I don't trust him to type my complaint appropriately).

    So I logged on to resolver and type the story above. My complaint is really poor customer service by Lloyds and time wasting. I wanted them to confirm who is right between the people on the phone and the branch managers and also to compensate me for wasting my time. I do understand Lloyds can close the accounts.

    One of the managers did call me back and she simply said again nothing can be done. She even printed their procedure online and said listen I will read it to you.

    After two hours I got a phone call and they said the managers are wrong and they will call them to make sure they understand how to do this. It is not your fault our staffs don't understand how to do their work. They also offer me £70 for the time wasting (which I accepted). She promised to call the manager and make sure they call me back so I can arrange the appeal. They credit my account with £70 straightaway.
    Last edited by lopsyfa; 15-04-2019 at 3:25 PM.
Page 3
    • 18cc
    • By 18cc 15th Apr 19, 5:47 PM
    • 1,251 Posts
    • 905 Thanks
    18cc
    I think I agree with you to a point although it is difficult

    obviously in this day and age it is pretty much impossible to live your life without access to a bank account and so like utilities and fresh air everybody should be able to access a bank account

    on the other hand of course banks are businesses should be free to accept or reject customers depending on whatever criteria they set

    not sure what the answer is but banks closing accounts seem to be on the increase these days and it makes me slightly uneasy
    • brianposter
    • By brianposter 15th Apr 19, 6:26 PM
    • 381 Posts
    • 120 Thanks
    brianposter
    As far as personal banking goes the question shouldn't be neccessary. Everyday basic transactions have no complexity.
    Originally posted by Thrugelmir
    But modern banks seem to have great difficulty recognising anything in particular about transactions. I had to waste hours last week because my bank had rejected what appeared to me to be a perfectly straightforward transaction.
    Last edited by brianposter; 18-04-2019 at 11:26 AM.
    • brianposter
    • By brianposter 15th Apr 19, 6:33 PM
    • 381 Posts
    • 120 Thanks
    brianposter
    Neither is it illegal to look at the way accounts are used and conclude the customer is creating work but no income from the bank's perspective, therefore please take your custom elsewhere.
    Originally posted by mgdavid
    But currently it appears to be "please take your custom elsewhere" and, if you are awkward, we will throw several hundred pounds after you.
    Last edited by brianposter; 15-04-2019 at 7:09 PM.
    • MABLE
    • By MABLE 16th Apr 19, 9:08 AM
    • 3,786 Posts
    • 2,000 Thanks
    MABLE
    If it happened to me I have 4 other bank accounts to use and countless credit cards with various institutions.
    • lopsyfa
    • By lopsyfa 16th Apr 19, 9:26 AM
    • 114 Posts
    • 53 Thanks
    lopsyfa
    I think that being annoyed is very understandable.

    As they have given you notice of closure, it seems very unlikely that there is any question of suspected fraud.

    Clearly they don't like something about the way the accounts are operated - but - they have shown good practice as far as the ombudsman is concerned by giving reasonable notice.

    https://www.financial-ombudsman.org.uk/publications/ombudsman-news/48/banking-closing-accounts.htm

    Like most other commercial organisations, banks and building societies are under no obligation to continue doing business with someone if they do not consider it appropriate to do so. But they should not decide to close an account for an improper reason – for instance, because of unfair bias or unlawful discrimination. And it is an implied term of the contract between the firm and its customer that the firm will not normally close the customer’s account without giving reasonable notice.

    You've received some compensation - look to the future and open new accounts?
    Originally posted by xylophone
    I agree with you but I have never complained about the account closure, my complaint is why send me around if there is no way to appeal. I didn't even ask to appeal, the customer service agent suggested it when I called to know why the account was closed.

    I have learnt a lot from this forum and starting this thread is only to see if I can help others. So I started this thread to maybe get to know why it happens and if I can help someone else avoid their account being closed, then fine. I am providing further details about how I operate the account only as a guess on what I think may be wrong.

    There are other things that I am thinking could cause it (not about any transaction or any fraud). Without at least trying to find out, what is to stop other banks doing the same? Also, I have stopped using the Lloyds account completely. I am sorry if my posts sound annoyed - I am not but maybe a little irritated.

    Maybe it is not worth it providing these details and updates.
    • brianposter
    • By brianposter 18th Apr 19, 11:30 AM
    • 381 Posts
    • 120 Thanks
    brianposter
    Maybe it is not worth it providing these details and updates.
    Originally posted by lopsyfa
    The general incompetence of modern large British businesses should be of concern to everybody.
    Please continue to pursue the matter, and provide updates.
    • phillw
    • By phillw 18th Apr 19, 11:45 AM
    • 2,159 Posts
    • 1,676 Thanks
    phillw
    I agree with you but I have never complained about the account closure, my complaint is why send me around if there is no way to appeal.
    Originally posted by lopsyfa
    Isn't appealing against the decision the same as complaining about the closure?

    So just phone up and complain that they are closing your account, tell them that you were given the run around with misleading information that you could appeal. Although as you accepted compensation for misleading information already then you may not get anywhere.
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