Barclays closed my account for no apparent reason.

[TheGreenGiant]

Hello.

 

First post, and i am hoping someone around here can fill me in better than Barclays have, and possibly offer me advice? I have searched the forums around here and no one seemed to of matched my situation, based on their financials they have posted in the thread, so figured i would post a new thread.

 

My situation started on Monday the 3rd of September, where i had money taken by Barclays from my account (the entire balance) the transaction was named "Reconcile" i only noticed this on the 5th of September, due to not checking my account since the Friday before, and had received no letter explaining this. So i complained, the funds were returned the same day, "good" i thought, i said to the customer relations manager that i would not post a complaint anywhere due to it being resolved the same day, they put this down to a "computer error" (probably BS), so i thought this was the end of the matter, 2 days later i received a letter, but didn't open it until the 14th as it got "buried" under other post, saying this account will be closed one month on from the date on the letter (my only current account btw) I have held this account since 1998, Which i found very strange, it was in credit by a considerable amount, no over draft, no defaults, I have no outstanding payments in my name (i don't like having debt) My card is only ever used over the counter to take out cash which i will need for the week ahead, as i don't feel secure using my chip and pin card. I feel i have been probably the best customer i could of been, the account is always active money going in and out, now apparently i do not meet their criteria, no explanation (like others) and what makes it worse, according to the woman if i was to make a letter to access the information stored on me, i would be in no better position to tell why this had happened (I feel this is a lie?).

 

Now i have to create another bank account, which i am worried because i expect this will go onto my credit report, which could stop me opening other accounts? Naturally, like most people, it is a necessity to have a bank account.

 

Willing to answer questions, and looking for some advice.

 

Thanks for reading

[renegadeimp]

Have you contacted barclays in writing and demanded to know whats going on? You also need to make a formal complaint.

[TheGreenGiant]

Well i have just got off the phone to them, my next step is to go to my local branch and then put it in writing, a complaint has been logged over the phone, but i am skeptical if it will work.

[renegadeimp]

From now on, stay off the phone. Everything is to be done in writing.

[TheGreenGiant]

Yes, i plan to do so from now on, thanks, i am more worried about my credit score than my account itself, because i can always open a new one, but if this effects it in such a way that i cant then it is seriously not a good way to conduct their business and treat customers

[BankFodder]

From now on, stay off the phone. Everything is to be done in writing.

This is very important advice.

 

Also, read this:- http://www.consumeractiongroup.co.uk/forum/content.php?899-Unfair-bank-A-new-set-of-rules-to-help-you-sue

[TheGreenGiant]

I understand about the FSA but if i remember rightly they are severely underfunded and cases can take up to 12 months to resolve, so i guess i can not expect this to be done quickly, but i guess my options are limited.

 

Thanks for the speedy replies, do you know of this happening before in this situation and possible harm done to my credit score for the bank closing my account, and my prospects of opening another account because of it?

[slick132]

Hi GG and welcome to CAG

 

First off and most important, get a new a/c set up elsewhere so you're not reliant on Barclays for ongoing banking facilities. This should be simple if you have no adverse markers on your CRA files.

 

Check your CRA files for any adverse markers in any event. This may shed light on the problem with Barclays.

 

You should also see here about CIFAS - https://www.google.com/url?q=http://www.cifas.org.uk/find_out_if_cifas_other_data_registered&sa=U&ei=PqBXUJ_UC4f80QXBkoHADw&ved=0CAYQFjAA&client=internal-uds-cse&usg=AFQjCNFL4oDaN6R9V_6ahHG-U2JuFiGjxQ

 

As you've been with the bank since 1998 and had no problems with unpaid debts, etc, it is strange that they decided to close your a/c. It may also be unfair, which is why Bankfodder told you to read up on the BCOBS Regs. If you have good grounds to challenge the bank, you can take direct court action against the without the time and trouble of complaining through the FOS (which takes many months).

 

Can you think of anything that may have prompted the bank's action. Perhaps :-

 

1. You have had some fraudulent activity recently on your bank or credit card a/c.

 

2. You are in business and there are large cash transactions moving on the a/c (which could be looked at under Money Laundering Reg'ns).

 

Sort out the new bank a/c pronto !!

 

Edited September 17, 2012 by slick132

[renegadeimp]

The Coop does a basic bank account that pretty much anyone can join. However, it is very limited in where you can withdraw money, but its a pretty much guaranteed account so long as you dont have a history of fraud or have been declared bankrupt. It's not the ideal solution but its a good stop gap.

[TheGreenGiant]

Well after talking to them in branch, i got the same response as i did by phone, the money going into my account has been pretty much static in the amounts weekly for the past year, I will being doing a credit report when i get a chance, to see if there was anything applied in my name, which i was not aware of, because they did say that if someone had applied for something related to my bank, which they were refused for, this would cause such a situation. I am applying for another bank account at the moment, and will probably apply for another one after, so to try and avoid having this situation again. Because of how i was treated i am going to reluctantly to use them up until the account is actually closed, using them as a stop gap until my details arrive.

 

I will refer to the links i have been given, to see if there is anything that can be done in terms of them being liable for being unfair to me, but it would appear i will never know a reason behind it, so i have to take it on the chin and move onto another bank that is more accommodating.

 

One thing i would like to ask, is that with my account closing, if i applied for say, a building society such as Nationwide or with a bank such as Halifax (just been told i am crazy, this is just an example), would the fact Barclays are in the process of closing my account (they are honoring their 30 Days they have to give me by contract) with no debt or outstanding charges, defaults ect ect and it was simply closing, this should not effect my chances of getting another account correct?

 

Thanks for the good replies, you have actually been more help than my own bank in terms of clarity, which shows how terrible Barclays are.

 

Ill post how i resolved it and if i am adversely effected by their move also if i do or do not find the reason for the closer.

[slick132]

Hi GG,

 

One thing i would like to ask, is that with my account closing, if i applied for say, a building society such as Nationwide or with a bank such as Halifax (just been told i am crazy, this is just an example), would the fact Barclays are in the process of closing my account (they are honoring their 30 Days they have to give me by contract) with no debt or outstanding charges, defaults ect ect and it was simply closing, this should not effect my chances of getting another account correct?

 

I really depends on Barclays' reasons for the a/c closure. It's outrageous that they're doing this with, apparently, no reason and I doubt they'll share the reasons with you. They'll possibly just say something like, "We cannot disclose this information for reasons of commercial sensitivity."

 

As there is nothing you're aware of that could have prompted this, I wonder if their decision has actually been made in error.

 

I would suggest a complaint to Barclays London HQ along the following lines:-

 

For Personal Attention of: The CEO, Mr Antony Jenkins

 

Barclays Bank PLC

1 Churchill Place

London

E14 5HP

 

Dear Mr Jenkins,

 

FORMAL COMPLAINT re Account Closure

 

Account No: xxxx xxxx

Sort Code 20-xx-xx

 

I am outraged that I have received notice of closure for my above account.

 

I have operated the account impeccably since 1998 with no unauthorised borrowing or overdraft and a healthy balance maintained at all times. I do not use my debit card for purchases so there should be no fraudulent transactions through use of my card and PIN.

 

Earlier this month, all funds disappeared from my account without warning and with the entry "Reconcile". I complained about this and, because the funds were restored immediately, I let the matter rest.

 

However, just two days later, I received notice of the banks intention to close all my facilities within 30 days with no reason. The letter was not opened until this week but, when I spoke to Customer Services about this on 17th September, they were of no help at all.

 

I went into my branch on 18th September and lodged a complaint but, again, no explanation or assistance was offered.

 

I would like an explanation as to why Barclays have decided to close my account after some 14 years.

 

If there is the suggestion of any fraud, card misuse, identity theft, etc, I want information so I can clear my name.

 

If there is anything related to CIFAS, please supply whatever information you can about this.

 

Because the account is due to be closed in less than three weeks, I would like your considered response within 7 days. If the matter is not properly resolved within that time, I will consider taking direct court action against Barclays using the BCOB Regulations.

 

Yours sincerely,

 

You should check the letter before sending and correct anything which I have said wrong. If you DON'T intend to sue them, which of course is your prerogative, omit that sentence. Don't threaten anything you're not prepared to do but bear in mind that we'll assist you with court action.

 

Send it by Recorded Del'y so they must sign for it.

 

[TheGreenGiant]

Thanks very much for taking the time to write that.

 

I will be firing off this letter come tomorrow, and ill make sure to read it and amend it accordingly, i took your advice and did a 30 day trial with Experian to read if there were any black makers and such, i returned a score of 929/1000 which i consider good (0 fraud or credit checks done or opened accounts that i don't know of ect ect). The only thing that i was told, is that the money going into the account "was not marked as pay" (to quote them), and was simply a wire transfer, it is possible they said they thought i was laundering money or something along those lines, to which i explained my business and how i pay myself, and proved the money was completely above board and not funding some illicit trade. Because all accounts along the way were registered with merchant banks and registered companies who many people across the world use, after providing other documents and invoices to prove this, and showing them as far as i could the source of the money, This transfer has been coming from the same merchant account for the last 2 years, and if i was going to money launder, there are far better ways than using my own personal account. The staff at the bank only gave me an email address and an address to send a letter to, which i declined to take and said i wanted to speak to a manager, so after speaking to the manager i got no further, which either shows his position is not needed at the branch or they were lying to me after all this i ran out of options and had to leave.

 

My only advice to others who may read this, is not to use them if you are self employed/deal in international transfers, because they seem to find this some big issue.

 

Many thanks.

Edited September 19, 2012 by TheGreenGiant

[slick132]

Hi GG,

 

Noted.

 

Let us know what response you get but don't be surprised if they fail to reply promptly.

 

[TEN8]

Hi,

 

I have read your post and responses and have found them very informative.

 

I to have had the exact same thing happen to me. Having just opened the letter from Barclays I immediately looked on the internet to find out more information about this and to see if it had happened to anybody else.

 

I am going to use the information provided to take action against Barclays but can you please let me know how your case was/is being handled so i know what to expect as I have never heard of anything like this happening to anybody I know.

 

Have you been successful? Is the case moving forward? Or are they just palming you off and ignoring you like them seem to do all the time with the response of "We don't know why this has happened blah blah blah..."

 

Thank you

[slick132]

Hi TEN8 and welcome to CAG

 

Please feel free to start your own thread in the Barclays Forum to discuss your case.

 

Give us a few details and you'll get all the help you need.