Does Lloyds shut down your account

[tetley75]

Hi, i've already had claims settled against Nationwide and HSBC, Nationwide closed down my account, but HSBC didn't. Have many people had their accounts closed by Lloyds? i'd perfer to stay banking with them and seeing the claim would only be for about £150 i need to decide if its worth it. Any advice would be much appreciated.

[Pondfish]

HI lukemannion,

 

I don't think Lloyds tend to close accounts, and i don't think they will over the amount you are claiming.

However, although unlikely it is not beyond the realms of possiblity. all i would say is that if they closed everyones account if they try to claim back penalty charges they wouldn't have many customers left, and those extorsionate profits wouldn't be so good would they?

 

Pondfish

[Will Scarlet]

Ditto - with the recent FOS ruling against A&L I personally think it is becoming less and less likely. However, as Pondy says, it's still a possibility. I'd be amazed if they closed your account for £150 though.

[tetley75]

O.k thanks for the info, i may well hit them too then.

[davethorp]

There have been instances of lloyds withdrawing an overdraft facility as a retaliatory measure but I've not heard of them closing an account. It is then hard to prove this was retaliation should a complaint be made to the FOS

 

As always before going down this path it is best to have a parachute account just in case the bank does anything nasty

[Empire Strikes Back]

Lloyds closed my account after claiming back my charges, the reason they gave was that the banking relationship had broken down between us. I have complained to the finanacial ombudsman about the retalitory account closure but am still waiting on a reply from them. Good job I am not holding my breath!

[empowered]

Interesting thread! Have today received a letter from Lloyds basically saying that I haven't used my business a/c for some time and would I like it left open? If they don't hear by 1 April, will close it. Luckily I had already opened another business a/c with Barclays last year. Have just filed N1 at court on Friday, which they will not yet know about but I am wondering whether this is in reaction to my LBA etc or just pure co-incidence?

[GaryH]

Have many people had their accounts closed by Lloyds?

No, not that I'm aware. They tried it a while back with a couple of claimants, but that was only when there was also the issue of large arrears, unpaid debts, etc.

 

Under the terms of the banking code they should not close an account whilst it is in dispute, and I am in possesion of letters from Lloyds acknowledging that this is the case. See this thread - http://www.consumeractiongroup.co.uk/forum/lloyds-bank/29826-help-enforcement-notice.html

 

As davethorpe said, they do occasionally call in overdrafts, but again, this is only usually when there are large arrears involved.