Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • FizzyPop
    • By FizzyPop 14th May 19, 6:56 PM
    • 19Posts
    • 2Thanks
    FizzyPop
    Halifax bank account closed
    • #1
    • 14th May 19, 6:56 PM
    Halifax bank account closed 14th May 19 at 6:56 PM
    I have a couple of questions.

    I currently bank with Halifax. I have 1 Halifax current account and 7 savings accounts attached to it. Iíve banked with them for maybe 4 years now. Today I received a text saying that after a review, a decision to close the account in 60 days has been made and that account facilities have been withdrawn. I probably have about £650 in there across all accounts. I called up to enquire about the closure and got passed on to account review/specialist team. The lady I spoke to was quite nice and first asked why I had so many accounts to which I replied that a few of them were meant to be closed and it was not my fault that they hadnít been. (I havenít actually been using all 7 savings accounts for this reason). She then queried a few of the transactions on the account, namely from Etsy and cashback websites. She asked whether I had proof of the source of these funds. She wasnít able to tell me what would be acceptable proof and merely asked Ďyou have an account with them donít you?í and then said to ask local branch about what to bring.

    Before anyone asks, I sell household stuff on Etsy, things that have been used previously but that Iíve not managed to shift on gumtree or ebay.

    My question is: what is considered sufficient proof of the source of the funds? Cashback websites are easy as I can just log in and show the payments being made. Etsy I wasnít sure whether I had to print off invoices or whether showing them the email that clearly states the value of the funds being put into the account. Just to say the actual transaction amounts are about £15 and £30 from the cashback websites and about £400 from Etsy.

    I know I can just ask my local branch but I wanted to bring it in one go as opposed to doing it over several visits (unless of course they ask for extra information).

    Iím quite shocked about the situation especially as I always thought Halifax was one of the nicer banks. Iíd understand if I was commiting fraud or money laundering but to just close an account out of the blue seems unjustified, especially as Iíve had cashback payments on and off over the time that Iíve been with them and the same with Etsy payments. Itís not something new.

    Thanks in advance for any help.
Page 1
    • 18cc
    • By 18cc 14th May 19, 6:59 PM
    • 1,353 Posts
    • 970 Thanks
    18cc
    • #2
    • 14th May 19, 6:59 PM
    • #2
    • 14th May 19, 6:59 PM
    it is possible i suppose that they think.you are using a personal account for business but the amounts seem quite small and anyway they wiuld probably just ask you to change it.
    • buglawton
    • By buglawton 14th May 19, 7:04 PM
    • 8,302 Posts
    • 5,077 Thanks
    buglawton
    • #3
    • 14th May 19, 7:04 PM
    • #3
    • 14th May 19, 7:04 PM
    Close the account or all accounts? That wasn't clear to me.
    • FizzyPop
    • By FizzyPop 14th May 19, 7:20 PM
    • 19 Posts
    • 2 Thanks
    FizzyPop
    • #4
    • 14th May 19, 7:20 PM
    • #4
    • 14th May 19, 7:20 PM
    Close the account or all accounts? That wasn't clear to me.
    Originally posted by buglawton
    Sorry all of them so the current account along with the savings accounts.
    • Ben8282
    • By Ben8282 14th May 19, 7:24 PM
    • 2,967 Posts
    • 1,554 Thanks
    Ben8282
    • #5
    • 14th May 19, 7:24 PM
    • #5
    • 14th May 19, 7:24 PM
    The question about why so many savings accounts is rather odd considering that Lloyds online banking was yesterday reminding me that I can have up to 5 instant saver accounts which could be renamed to create pots for specific savings purposes and encouraging me to open such accounts (which considering that they pay 0.2% pa interest I find quite amusing).
    You say that the current balance of all your accounts is £650 but has it always been so low? The amount mentioned is far too low to be arousing any suspicion or requiring proof of source of the funds.
    One thought is that somebody you sold something to has made a claim that you have defrauded them but quite how Halifax would be directly involved I don't know.
    Could I ask if this is your main current account (the account that your salary/wages is paid into)?
    it is possible i suppose that they think.you are using a personal account for business but the amounts seem quite small and anyway they wiuld probably just ask you to change it.
    Originally posted by 18cc
    The amounts involved seem to be too low for this to be a concern.
    Last edited by Ben8282; 14-05-2019 at 7:30 PM.
    • FizzyPop
    • By FizzyPop 14th May 19, 7:25 PM
    • 19 Posts
    • 2 Thanks
    FizzyPop
    • #6
    • 14th May 19, 7:25 PM
    • #6
    • 14th May 19, 7:25 PM
    it is possible i suppose that they think.you are using a personal account for business but the amounts seem quite small and anyway they wiuld probably just ask you to change it.
    Originally posted by 18cc
    Maybe. The way the lady asked the question made it sound like she thought I was doing business or maybe Iím just hearing things that arenít there lol.

    In any case Iím just not sure whether theyíd want the invoices or the transaction payments being shown. Invoices would of course verify what Iíve sold and transaction amounts (by this I mean the total funds that get sent to the bank account) would verify the amounts shown on the account are as they should be. Not sure what proof they require to show the funds are mine and whether either of those are sufficient.
    • FizzyPop
    • By FizzyPop 14th May 19, 7:32 PM
    • 19 Posts
    • 2 Thanks
    FizzyPop
    • #7
    • 14th May 19, 7:32 PM
    • #7
    • 14th May 19, 7:32 PM
    You say that the current balance of all your accounts is £650 but has it always been so low? The amount mentioned is far too low to be arousing any suspicion or requiring proof of source of the funds.
    One thought is that somebody you sold something to has made a claim that you have defrauded them but quite how Halifax would be directly involved I don't know.
    Originally posted by Ben8282
    No, funds that get sent from Etsy are not always low. The most I’ve been sent is around £1k but again it’s not a regular occurence as I only list stuff up whenever I have the time as I’m usually too busy. And this £1k is not just one item either that’s been sold, it’s several items that have been sold and then Etsy group the payments together and send it for whatever date is requested.

    Your last point would make sense if I received payment from the customer directly but everything is done through Etsy so any problems are solved by them. Everyone I’ve sold to have been happy and left glowing feedback etc.

    Also to answer your edited in question, no thankfully it’s not my main bank account otherwise I’d be more panicked and trust me I’m panicking already as I’ve read of so many horror stories.
    Last edited by FizzyPop; 14-05-2019 at 9:51 PM.
    • johnsmith1890
    • By johnsmith1890 14th May 19, 7:50 PM
    • 310 Posts
    • 175 Thanks
    johnsmith1890
    • #8
    • 14th May 19, 7:50 PM
    • #8
    • 14th May 19, 7:50 PM
    ...
    I’m quite shocked about the situation especially as I always thought Halifax was one of the nicer banks.
    ...
    Originally posted by FizzyPop

    There is no such thing as a nice bank. They are all nasty. When dealing with banks (and insurance companies) your starting assumption should be that they are swindlers, liars and fraudsters, then take it from there. This is how they view their customers, so it's appropriate to take a similar view of them.


    So, following the rant, it does look as though they have stupidly come to the conclusion that you're running a business via your personal accounts. As such, there are fees that they feel they have a right to, but are not collecting. Hopefully you have other banking arrangements with banks outside the Lloyds Group. If so, I'd be inclined to get your money out of Halifax and don't ever contact them again.
    • FizzyPop
    • By FizzyPop 14th May 19, 9:59 PM
    • 19 Posts
    • 2 Thanks
    FizzyPop
    • #9
    • 14th May 19, 9:59 PM
    • #9
    • 14th May 19, 9:59 PM
    There is no such thing as a nice bank. They are all nasty. When dealing with banks (and insurance companies) your starting assumption should be that they are swindlers, liars and fraudsters, then take it from there. This is how they view their customers, so it's appropriate to take a similar view of them.


    So, following the rant, it does look as though they have stupidly come to the conclusion that you're running a business via your personal accounts. As such, there are fees that they feel they have a right to, but are not collecting. Hopefully you have other banking arrangements with banks outside the Lloyds Group. If so, I'd be inclined to get your money out of Halifax and don't ever contact them again.
    Originally posted by johnsmith1890
    Haha yes I suppose thatís true. But never had cause to dislike them for any reason.

    The issue is getting the money out. Itís only £650 or so and if itís such a hassle to get out then itís not a huge amount to lose but would rather not lose it if possible. Just need to know what counts as sufficient evidence for them. Wonít be able to get to the bank until next week.
    • Ed-1
    • By Ed-1 14th May 19, 10:06 PM
    • 2,577 Posts
    • 1,374 Thanks
    Ed-1
    Haha yes I suppose thatís true. But never had cause to dislike them for any reason.

    The issue is getting the money out. Itís only £650 or so and if itís such a hassle to get out then itís not a huge amount to lose but would rather not lose it if possible. Just need to know what counts as sufficient evidence for them. Wonít be able to get to the bank until next week.
    Originally posted by FizzyPop
    Have they blocked the accounts pending closure?
    • FizzyPop
    • By FizzyPop 14th May 19, 10:09 PM
    • 19 Posts
    • 2 Thanks
    FizzyPop
    Have they blocked the accounts pending closure?
    Originally posted by Ed-1
    Yes I believe so as I canít access my online banking.
    • Ergates
    • By Ergates 15th May 19, 11:47 AM
    • 366 Posts
    • 515 Thanks
    Ergates
    So, following the rant, it does look as though they have stupidly come to the conclusion that you're running a business via your personal accounts. As such, there are fees that they feel they have a right to, but are not collecting.
    Originally posted by johnsmith1890
    Firstly, that wouldn't really be such a "stupid" conclusion - regular/semi-regular income coming from Etsy, looks quite a lot like someone running a small business from home.

    Secondly, are you suggesting that banks *don't* have a right to charge fees to businesses? That banks should be obliged to provide services to businesses for free?
    • longleggedhair
    • By longleggedhair 16th May 19, 6:11 PM
    • 356 Posts
    • 430 Thanks
    longleggedhair
    They did exactly the same to me a couple of years ago. I had some shares I had built up over several years in a Halifax share dealing account. I sold them and transferred the proceeds into my Haliax current account. They then closed my currents, sharedealing and savings account!

    Quite pathetic when the money was all from within the group. They are an awful group to be a customer of, and I've heard of many others who have suffered the same fate.

    Get your revenge in the long term as I have by telling as many people as you can how dreadfully they treat their customers. I know I've cost them a fair bit of money over the years as friends and family come to me for advice on money matters.

    Move your accounts elsewhere and never give the Lloyds group a penny of your money again.
    • lopsyfa
    • By lopsyfa 17th May 19, 6:41 PM
    • 159 Posts
    • 86 Thanks
    lopsyfa
    I had this from the Lloyds banking group recently (see my thread https://forums.moneysavingexpert.com/showthread.php?t=5990108) and the decision was overturned but I had already closed and transferred my accounts to another bank using the CASS by the time they informed me they are no longer closing my account.

    However, the different thing with you was I could operate my account as normal during the notice period. I will advise you to issue a SAR to CIFAS to check that they haven't left any fraud marker against your name.

    As to the in-branch appeal, you don't really need to take any document (but it won't hurt if you can show some documents - in my case there was no need to supply anything). It is mainly a chat with a branch manager who will ask you about the different transactions on the account. I will advice you appeal this because otherwise it seems they will block you from opening account with the group forever. Lloyds may have a competitive products or even have a good job openings you may like in the future.

    But I agree, the treatment of customers by banks is not very good.
    • FizzyPop
    • By FizzyPop 17th May 19, 7:33 PM
    • 19 Posts
    • 2 Thanks
    FizzyPop
    Firstly, that wouldn't really be such a "stupid" conclusion - regular/semi-regular income coming from Etsy, looks quite a lot like someone running a small business from home.

    Secondly, are you suggesting that banks *don't* have a right to charge fees to businesses? That banks should be obliged to provide services to businesses for free?
    Originally posted by Ergates
    Itís not regular income though. Itís literally a month worth of listing stuff, they get sold and payment goes to the Halifax account. Several months later the same, all things in the household in order to pay for house renovation, again can be shown by invoices and proof on Etsy.
    • FizzyPop
    • By FizzyPop 17th May 19, 7:42 PM
    • 19 Posts
    • 2 Thanks
    FizzyPop
    However, the different thing with you was I could operate my account as normal during the notice period. I will advise you to issue a SAR to CIFAS to check that they haven't left any fraud marker against your name.

    As to the in-branch appeal, you don't really need to take any document (but it won't hurt if you can show some documents - in my case there was no need to supply anything). It is mainly a chat with a branch manager who will ask you about the different transactions on the account. I will advice you appeal this because otherwise it seems they will block you from opening account with the group forever. Lloyds may have a competitive products or even have a good job openings you may like in the future. Also unlike others, there’s nothing that says that I can’t bank with them again so who knows? Will definitely issue an SAR to CIFAS to confirm.

    But I agree, the treatment of customers by banks is not very good.
    Originally posted by lopsyfa
    Okay, now I’m getting worried. Would they really put a CIFAS marker just for thinking I’m a small business? I’m not commiting fraud at all! Will definitely have that checked out asap.

    I finally received the letter from them today about the account closure. Doesn’t mention anything about CIFAS, although not sure if they even do that or it’s upto the customer to find out? Does the bank usually give an indication about CIFAS if they intend to put a marker on you? If so, no indication on the letter. Says I’m a risk to their business after carrying out a risk assessment but nothing else.
    Last edited by FizzyPop; 17-05-2019 at 7:44 PM.
    • Ed-1
    • By Ed-1 17th May 19, 8:12 PM
    • 2,577 Posts
    • 1,374 Thanks
    Ed-1
    Okay, now I’m getting worried. Would they really put a CIFAS marker just for thinking I’m a small business? I’m not commiting fraud at all! Will definitely have that checked out asap.

    I finally received the letter from them today about the account closure. Doesn’t mention anything about CIFAS, although not sure if they even do that or it’s upto the customer to find out? Does the bank usually give an indication about CIFAS if they intend to put a marker on you? If so, no indication on the letter. Says I’m a risk to their business after carrying out a risk assessment but nothing else.
    Originally posted by FizzyPop
    • lopsyfa
    • By lopsyfa 17th May 19, 8:26 PM
    • 159 Posts
    • 86 Thanks
    lopsyfa
    Okay, now Iím getting worried. Would they really put a CIFAS marker just for thinking Iím a small business? Iím not commiting fraud at all! Will definitely have that checked out asap.

    I finally received the letter from them today about the account closure. Doesnít mention anything about CIFAS, although not sure if they even do that or itís upto the customer to find out? Does the bank usually give an indication about CIFAS if they intend to put a marker on you? If so, no indication on the letter. Says Iím a risk to their business after carrying out a risk assessment but nothing else.
    Originally posted by FizzyPop
    No need to be worried but you can't really know why the account was closed at this moment except if they told you. Also they won't tell you if they put a marker. The CIFAS SAR is really quick and i think they replied within a week in my case. There may be nothing there but no harm in knowing just in case.
    • FizzyPop
    • By FizzyPop 17th May 19, 8:34 PM
    • 19 Posts
    • 2 Thanks
    FizzyPop
    That’s the same letter that I got. Really wish I never banked with them! Gonna put in a request and see whether thats the case.
    • Ed-1
    • By Ed-1 17th May 19, 8:42 PM
    • 2,577 Posts
    • 1,374 Thanks
    Ed-1
    That’s the same letter that I got. Really wish I never banked with them! Gonna put in a request and see whether thats the case.
    Originally posted by FizzyPop
    Have you phoned the account review team on the number on the letter? This version of an account closure letter is usually sent where they suspect fraud and takes into account everything on credit reference files, fraud prevention agencies and internal account info. Note the subtle difference from other account closure letters from LBG - that it doesn't ban you from applying for new accounts with them in future if you want to. If you are deemed an acceptable risk on a new application in future, they will let you have other accounts but for whatever reason aren't happy with your current risk level with your current circumstances AT THIS TIME. Ring them on Monday, give them the reference number and see what they have to say. It may be just 'you don't meet our criteria'.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

2,306Posts Today

6,694Users online

Martin's Twitter