Bank Account Closure

[yourbank]

I have recently sent my LBA for charges to be returned but it now appears that my account [ of which the overdraft is made up entirely of charges ] has been closed. Nice of them to inform me:rolleyes:

 

I seem to remember a case where someone was awarded £125 for this in a claim, it may have been Alliance & Leicester, but I was just wondering how to add this to my poc.

 

Thankfully I have already opened another account but had I not done so I would have had serious financial difficulties due to thier actions, as they haven't even bothered to inform me. I don't know which Banking Code they follow but it isn't the one I've read;-)

 

I would make a formal complaint about the closure of the bank account and quote the FSA Waiver on Bank Charges:

 

13.18 states:

 

"(18 )

the firm must not close accounts or threaten closure of accounts of customers when it might reasonably appear that this is for the purpose (or with the intent) of penalising customers that have complained about unauthorised overdraft charges for having complained, or deterring future complaints from these customers or others. For the avoidance of doubt, the firm may close accounts or threaten to close accounts where there is good justification for doing so based on the circumstances of the particular case;"

[yourbank]

I automatically make complaints now, in all cases!!! Thing is that although each complaint adds to the weight of the case and can lead to intervention, it rarely solves the immeadiate problem [ eg I waited 12 months for the FOS just to assign someone to one of my cases!

We are just talking about account closure in breach of the FSA Waiver on bank charges ONLY as you had sent a letter to them and they had responded to you prior to shutting the account.

 

If we are talking the bank charges complaint alone on the basis of hardship then I would have a different approach.

[yourbank]

Mutley, I mean yourbank:wink:, we are talking account closure and charges. Am I right about the £125 for the A & L case?

 

I have a model of Mutley sat next to me, excuse me , I think he wants a medal!

 

You need to explain £125 to me. Prior to the test case, A&L did get a few fines from the FOS with regards to closing a bank account because of reclaiming.

I think you have 1 case for closing the account because you reclaimed.

I don't know if you have a bank charges case for hardship which would be a second case.

However, if you are putting both cases together I think it is a mistake to do so.

[yourbank]

I'm referring to the A&L fines of £125 for account closure which you refer to and if I could add into my charges claim a claim for this amount, due to the banks' action of closure, whilst I am reclaiming charges, but I note that you recommend not to do it this way.

The answer is a definite NO since any amount would have been determined by the FOS with regards to retaliatory closure of the account.

[yourbank]

Ok, so I should use the FOS for this closure matter instead?

complaint to FOS, with documentary evidence, ie first letter and response and if you can get the date they shut the account or stopped you using it then it would be great.

and remember they breached the waiver by closing it, didn't inform you either so that is breach of the banking code on notice to be given.

It might be worth a letter to A&L on that firstly asking for a final response because their final response will determine the argument to the FOS. If you simply go straight to the FOS then they write out to A&L and it gets messy.