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Information on Account Closure


NedKelly63
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All,

 

I contacted the Banking Code Standards Board to find out under what circumstances a bank could close your account.

 

My question was prompted after seeing that some banks do this after they've been threatened with or had court action taken against them to reclaim charges.

 

This action doesn't seem very fair to me, afterall, it's the bank that's behaved illegally.

 

Surprisingly enough, a bank doesn't have to give a reason for closing an account!!

 

Page two referenced by the link below covers the situation for account closures after a charges reclaim.

 

The reply from the BCSB is shown below.

 

Regards,

 

Ned

 

 

Dear Mr Kelly

 

Thank you for your email. Clause 7.5 of the Banking Code provides that in normal circumstances a bank will not close your account without giving you at least 30 days’ notice. There is no requirement that reasons are given for closing an account.

 

The subject of account closure following a successful claim for refund of charges was referred to in a recent bulletin we issued to subscribers to the Banking Code and I attach below a link to that for your information:

 

http://www.bankingcode.org.uk/bulletins/Bulletin%2021%2027%20Jul%2006%20PDF%20FINAL.pdf

 

Regards,

 

Mrs Hilary Putt

Helpdesk Manager

*********************************

NatWest Advantage Premier Account

01-09-2006 - S.A.R - (Subject Access Request) sent

04-09-2006 - NW respond asking for fee

09-09-2006 - New S.A.R and fee sent

23-09-2006 - Statements received

*********************************

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