I feel useless

[RVP991]

Hello Guys,

 

Sorry for this post if it drags on.

Basically, I am 21 years old and have a current account with Barclays. I have never been overdrawn, or taken any loans from the bank. My bank was used for transferring money between my bank accounts, and receiving payments. I buy and sell items online - which means that I can receive several payments a day through my online banking.

 

I had £7,000 cash in my account and a £3,500 ISA account in my name with Barclays until last week. I withdrew £5500 from my current account, and all of my ISA account - as my father needed some funds to help buy a new car.

This left me with around £1500.

 

On Tuesday this week - I tried to login to my online banking and received an error message. So I rang the number listed. They told me my account has been closed as per pending "investigation". They wouldn't tell me what for, or what is going on. I was then phoning Barclays and being transferred and put on hold for around 3 hours - and still didn't get a response. I was just told to wait 48 hours for an "update".

 

Today I went to the bank - and I was told that my bank account is being closed, as I "don't meet the requirements anymore". I had a meeting with an advisor who told me that I could withdraw all my money out my account. As soon as I went to withdraw (over the counter) I was told I had NO FUNDS. After 30mins of faffing around, they found out that my funds had been held my Barclays and moved for "Safekeeping" - Is this even legal removing funds without my permission?

 

I then spoke to the branch Manager, who rang Head Office and after 1 hour of waiting - I was told that:

- They will not let me withdraw funds

- They are closing my bank account

- I had to write a letter to explain where my funds have come from

 

I just graduated from University, and have always been careful with money. Most of my funds are from there. However, I do buy and sell online - this includes receiving online payments from people I don't know. No one has told me why my account is being closed, or what I have dont wrong. So obviously I am worrying, when I am told my account is being closed and no one is telling me why.

 

I can only come to the conclusion that someone has sent me a fraud payment - but even then, does this warrant my account being closed?

 

Now, I have £10 to my name, bills to pay - and have to wait 3-6 weeks for a response from head office, to find out IF i can get my money back.. Can they just keep it?

 

I am obviously distraught at how they have treated me, as I have had no reasoning behind the closure of my account and them keeping my funds.

 

If anyone can offer any advice on what I can do, or any help at all, I would greatly appreciate it.

[slick132]

Hi RVP and welcome to CAG

 

We have seen this happen many times before, with Barclays and other banks.

 

It is most likely to have happened as a result of Money Laundering Regulations. You will be told virtually nothing while investigations are made.

 

The good news is that, in the majority of cases, your money will be made available to you again within a matter of a week or two, assuming the authorities find nothing untoward.

 

I read in the Daily Telegraph last Saturday about banks dumping customers for various reasons but the article went on to discuss Money Laundering Reg'ns. See here - http://www.telegraph.co.uk/finance/personalfinance/savings/10273512/Banks-dump-thousands-of-loyal-customers.html

 

The article says how you can contact CIFAS to see if they hold any data about you to suggest you are unsuitable as a bank customer.

 

I suggest you open an account with another bank as a matter of urgency. If Barclays are not prepared to offer facilities for whatever reason, you need to set up elsewhere.

 

[Consumer dude]

You need to be honest here. Was money being transferred electronically, did you receive cheques ? I get the feeling the bank suspects criminal activity. If you are legit you will have nothing to be concerned about..

[RVP991]

You need to be honest here. Was money being transferred electronically, did you receive cheques ? I get the feeling the bank suspects criminal activity. If you are legit you will have nothing to be concerned about..

 

Money was transferred electronically. I will be totally honest when I say I sell virtual goods online. Never had a problem before though.

I haven't taken part in any fraudulent activity though

[RVP991]

Hi RVP and welcome to CAG

 

We have seen this happen many times before, with Barclays and other banks.

 

It is most likely to have happened as a result of Money Laundering Regulations. You will be told virtually nothing while investigations are made.

 

The good news is that, in the majority of cases, your money will be made available to you again within a matter of a week or two, assuming the authorities find nothing untoward.

 

 

The article says how you can contact CIFAS to see if they hold any data about you to suggest you are unsuitable as a bank customer.

 

I suggest you open an account with another bank as a matter of urgency. If Barclays are not prepared to offer facilities for whatever reason, you need to set up elsewhere.

 

 

I have opened a new account with Halifax as I am due to be paid from work at the end of the month

 

It's just annoying how they can spring all this on you with no explanation..

 

Thanks for the reply!

[slick132]

Hi RVP,

 

Further to my comments above, it may be that your banking activity has triggered one or more of the bank's "Financial Crime Filters". For instance, moving money from one bank to another, or moving money from one banking jurisdiction to another.

 

From the Telegraph article :-

 

Richard Hobbs, a compliance expert and director at consultancy Lansons, offered other reasons for why a bank might sack a customer.

The first is a consequence of regulatory moves to improve banking standards across Europe. Banks are being forced to hold more capital on their balance sheets and, as a result, might want to shun “poor quality” depositors, where there may be a lot of money being transferred in and out of accounts but not much staying in – involving a lot of cost for the bank for not a lot of benefit.

 

Another is if a customer triggered any of the bank’s “financial crime filters”, Mr Hobbs said. Regulators require banks to monitor their customers’ accounts for certain characteristics, like having more than one account open with different banks and moving from one banking jurisdiction to another. These arrangements can be entirely innocent but they could inadvertently trigger a bank’s filters. Mr Hobbs said: “Banks are increasingly under pressure from regulators to be whiter than white on money laundering and financial crime.”

 

[RVP991]

Hi RVP,

 

Further to my comments above, it may be that your banking activity has triggered one or more of the bank's "Financial Crime Filters". For instance, moving money from one bank to another, or moving money from one banking jurisdiction to another.

 

From the Telegraph article :-

 

 

 

 

 

I see.

Will I get my money back? I should hope so..

 

After being treated like this I will be moving banks.

[Consumer dude]

Do the banks have to keep you informed on this sort of issue and if they are being vague and withholding a persons money without good reason, can't you report it to the police..

[slick132]

Do the banks have to keep you informed on this sort of issue and if they are being vague and withholding a persons money without good reason, can't you report it to the police..

 

The bank is unlikely to tell you anything.

 

I suspect they don't have to, and/or they are not allowed to.

 

The police will be unable to do anything and will be uninterested in any event, for various reasons.

 

Complaining to the bank, even at the highest level, will get you little or no information. However, as stated above, experience shows that they money will be back and available soon.

 

You can ask the bank to explain why they're unwilling to continue to offer you facilities but they are under no obligation to disclose the detail of what they will consider to be a commercial decision.

 

Once the dust has settled, I strongly suggest you approach CIFAS to see what info, if any, they hold about you. You can then challenge that if appropriate.

 

[Consumer dude]

It makes me laugh. The banks quite often legally take from the individual by way of charges but if a little bit of money is being made, an investigation takes place. No wonder people don't trust the banks..

Edited September 6, 2013 by ims21

[RVP991]

Hope this doesn't take a month to resolve as I am in need of the money

 

Thanks for all replies so far!

[BRIGADIER2JCS]

You should raise an immediate FORMAL COMPLAINT with Barclays Director of Retail Banking, an FC requires the bank to properly investigate and reply to the complaint.

[RVP991]

You should raise an immediate FORMAL COMPLAINT with Barclays Director of Retail Banking, an FC requires the bank to properly investigate and reply to the complaint.

 

How would I be able to do that sorry?

 

Also, is there a chance they just never give me my money back? I was going to ring them again today, but seems like most of the advice here is to not ring them and write complaints.

[Consumer dude]

How would I be able to do that sorry?

 

Also, is there a chance they just never give me my money back? I was going to ring them again today, but seems like most of the advice here is to not ring them and write complaints.

 

Putting things in writing creates a paper trial and you have a record of everything. If you are telling the truth, then you have nothing to fear from any knock at the door. Telephone calls can be denied as happening, the written word is harder to deny..

Edited September 6, 2013 by Consumer dude

[RVP991]

Putting things in writing creates a paper trial and you have a record of everything. If you are telling the truth, then you have nothing to fear from any knock at the door. Telephone calls can be denied as happening, the written word is harder to deny..

 

 

Ok thanks!

Pretty sure I have done no wrong doing. All I have done is receive payments from people I sell to, and transfer money to my accounts. Does this warrant a business account?

 

Thanks

[slick132]

Hi RVP,

 

From what you've said, I think you have nothing to worry about at all. It's probably that you have attracted attention by triggering one or more of the ML filters.

 

Certainly stay off the phone. Write to Barclays HQ as suggested if you want although I doubt it will have any impact.

 

I have just been through old threads here and have found several cases where we think ML Regs caused money to disappear. The problem is that posters do not come back and tell us how their cases were resolved.

 

If the issue was simply that the bank wanted you to open and use a business a/c, this would have been handled very differently IMHO.

 

[RVP991]

Hi RVP,

 

From what you've said, I think you have nothing to worry about at all. It's probably that you have attracted attention by triggering one or more of the ML filters.

 

Certainly stay off the phone. Write to Barclays HQ as suggested if you want although I doubt it will have any impact.

 

I have just been through old threads here and have found several cases where we think ML Regs caused money to disappear. The problem is that posters do not come back and tell us how their cases were resolved.

 

If the issue was simply that the bank wanted you to open and use a business a/c, this would have been handled very differently IMHO.

 

 

Ok thanks for your help mate.

 

Guess all I can do now is wait

 

I will definitely post updates in here.

[RVP991]

Hi RVP,

 

From what you've said, I think you have nothing to worry about at all. It's probably that you have attracted attention by triggering one or more of the ML filters.

 

Certainly stay off the phone. Write to Barclays HQ as suggested if you want although I doubt it will have any impact.

 

I have just been through old threads here and have found several cases where we think ML Regs caused money to disappear. The problem is that posters do not come back and tell us how their cases were resolved.

 

If the issue was simply that the bank wanted you to open and use a business a/c, this would have been handled very differently IMHO.

 

 

Unless I am wrong, I had 30 days to sort my account out?

I just had a letter from barclays which says my account was closed on the 5th September and they can no longer offer me their service. So where has my money gone?

[slick132]

Your money will be in a holding a/c pending the ML Regs review.

 

Did they tell you in writing or a tel con that you had 30 days until closure.

 

It is perhaps reasonable that, if there's a suspicion of ML, they would have to close the a/c immediately.

 

However, once they are told your money is "clean", I think they should then reconsider the closure. However, I understand that you may have no desire to trust them again with your money.

[RVP991]

Your money will be in a holding a/c pending the ML Regs review.

 

Did they tell you in writing or a tel con that you had 30 days until closure.

 

It is perhaps reasonable that, if there's a suspicion of ML, they would have to close the a/c immediately.

 

However, once they are told your money is "clean", I think they should then reconsider the closure. However, I understand that you may have no desire to trust them again with your money.

 

 

They didn't tell me I had 30 Days, I just presumed from reading stuff.

They did tell me my money was moved to another account though.

I had to write a letter to their head office explaining that I buy/sell online and this is why I have many frequent payments.

I will never use Barclays again, even if they reconsider the closure.

 

Thanks for the quick reply!

[slick132]

I had to write a letter to their head office explaining that I buy/sell online and this is why I have many frequent payments.

 

Did you decide to do this yourself or did they ask you any questions and, if so, what did they ask.

 

[RVP991]

Did you decide to do this yourself or did they ask you any questions and, if so, what did they ask.

 

 

Well, I was in the bank for 2 hours while the branch manager tried getting through to Head office. She finally got through and they told her that I needed to write a letter to Head Office explaining where my funds had come from and why there were so many frequent payments. She offered to send it off for me, so I left it with her and I also have a photocopied copy.

 

As for the bank manager, she didn't really ask me anything. I told her that I buy and sell products online, so maybe something arose from this but she said she couldn't tell me anything. I understand they may not "want" to tell me anything, the only reason I got annoyed was I was told I could withdraw all my money, to only go and try to and be told there was no money in my account (they had moved it) making me look like an idiot..

[slick132]

Hi RVP,

 

Your letter about how you conduct your business will do no harm and may even be taken into consideration if they are looking at MLR's.

 

Will it affect any outcome - we shall see...........

 

I would go into the branch again tomorrow, speak to a manager and tell them you need to know when your funds will be available. Tell them this is costing you money being unable to operate as normal and you will seek compensation if necessary. In your own words, of course.

 

See how they respond.

 

[RVP991]

Hi RVP,

 

Your letter about how you conduct your business will do no harm and may even be taken into consideration if they are looking at MLR's.

 

Will it affect any outcome - we shall see...........

 

I would go into the branch again tomorrow, speak to a manager and tell them you need to know when your funds will be available. Tell them this is costing you money being unable to operate as normal and you will seek compensation if necessary. In your own words, of course.

 

See how they respond.

 

I was told 4 weeks for a response to the letter I sent from the bank. I called the fraud team previously and was also told the same thing. Not sure if I can face going in again because I get so frustrated I'm being treated like this when I have done no wrong.

[slick132]

I completely understand your frustration at the bank's treatment.

 

I simply don't like to see the bank suggesting that it's ok for you to wait weeks for them to resolve the situation or to respond to your letter when they have confiscated your money without any explanation.

 

Perhaps a different approach would be to make an Ungent Phone Complaint to the FOS based on the bank confiscating your money and leaving you without funds on which to live on (if that is the case).

 

Although we have seen this scenario many times, I'd like to know how "the banking system" expects you to cope through the experience, either mentally or financially.