Help - Bank closed accounts

[danmoz98]

This morning, without any prior warning, without any previous dialogue from the bank that would even hint that there was some kind of problem I have received letters from Natwest saying they are closing not only my business account but my personal account.

 

The letters merely state:

 

"The Bank has carried out a review of your banking arrangements and has decided that it no longer wishes to provide banking facilities to you. The bank is unwilling to enter into any further discussion with you regarding this discussion".

 

How can they do this? surely this would effectively be bankrupting me? They've given me no time to set up new accounts or transfer my direct debits.

[dw190]

This morning, without any prior warning, without any previous dialogue from the bank that would even hint that there was some kind of problem I have received letters from NatWest saying they are closing not only my business account but my personal account.

 

The letters merely state:

 

"The Bank has carried out a review of your banking arrangements and has decided that it no longer wishes to provide banking facilities to you. The bank is unwilling to enter into any further discussion with you regarding this discussion".

 

How can they do this? surely this would effectively be bankrupting me? They've given me no time to set up new accounts or transfer my direct debits.

 

They can cease providing services if they so choose.

 

If you want to find out more, do a Subject Access Request under the Data Protection Act. Internal memos should also be provided.

[elizabeth1]

DAN, Have you recently reclaimed charges? or in the process of doing this?

 

I would think they should give you say 28 days notice to allow you to make banking provisions elsewhere etc.. for whatever reasons they are closing the accounts.

 

There is a list of places you can set up Parachute Accounts etc.. in here (try a search - or the a-z list it will show up there)

 

But - if they've given no notice etc.. and it's two accounts like you say and unreasonable - go to Financial Ombudsman Services and explain to these people what has happened and they may be able to help you sort it out etc.. but I would definitely complain about it to FOS

 

If you haven't already done so send a £10 cheque/postal order and SAR them - the letter is in the Template Library - this way you should get all the statements and nots on your banking history with these people. the one fee will cover both accounts (if with same company) Just make sure you put both account numbers on the letter. this way you'll exactly how things were running nd if there is room for reclaiming charges etc..

 

But a phonecall to FOS is worthwhile or doing the complaint form and posting.

[danmoz98]

I reclaimed my charges months ago, it was around £1000 all inclusive (costs, interest, etc). They paid up in August 2006, surely they wouldn't be looking to get back at me months and months later?

 

I just can't understand this at all. I try to run my business as straight as possible but obviously we get complaints like any business. If the bank were unhappy for whatever reason with the way I conduct business then I would expect them to have called me in to discuss things a few times, perhaps warn me, tell me there were issues but there's been nothing like this at all. No phone calls, no meetings with the business Manager, no letters, nothing to suggest any problem.

 

My business account and current account were in credit, the current account hasn't been overdrawn in around two years, the business account rarely goes overdrawn, we bank around £5k a week in new business and have about the same again in standing orders to process once the product is produced. We have no loans outstanding, no overdraft, a credit card with £3k limit that's never been used. We've been running 5 months or so and project a turnover of about half a million at our current size (we're only small), with at least half of that being profit!

 

I could understand if the business manager had me in week after week screaming that they were inundated with complaints, or we were under investigation by Trading Standards or the police, but he hasn't and were definitely not.

 

I just can't believe they can close the accounts with 'immediate effect' and then say they refuse to discuss their decision any further. This is my livelihood, I have bills to pay, a mortgage, staff wages to pay, numerous direct debits. They've waited until Friday to do this so i can't contact them, they've chosen a time when I have a large amount being paid out of my personal account in direct debits which has taken me into my (small, £100) overdraft, which they've now terminated so that's 'unarranged borrowing'. I can't pay my wages on Monday because the business account is empty and I'm sat on £5k of cheques from this weeks business I'm now unable to bank.

 

Luckily i have some money elsewhere but I'm completely disgusted they can act in this manner. They've effectively bankrupted me and unemployed 8 other people! If there were issues with my business then fair enough if they'd told me, given me some notice and closed the account but to close my personal account as well, send people round to collect the cards and chequebooks, terminate all my direct debits immediately, etc? That's insane, especially with no explanation whatsoever.

[elizabeth1]

With what you have said above I can't say I understand it really - especially as you say you reclaimed charges a long while back (surely any retaliation would have happened sooner?)

 

I would definitely get onto FOS (DO A GOOGEL SEARCH FOR IT - THERE MAYBE A LINK IN HERE ALSO) tell FOS exactly what you have told us here and they will help you sort it out - it's really rude the bank won't expalin isn't it?

 

FOS can go into the problem and maybe warn them off / fine them etc..

 

Like you say this is your livlihood etc.. you deserve better - do complain and see what happens.

 

I wish I knew more to help you - all I know is it's looking unfair so go to the FOS and ask them to help you.

[tiaposy]

Good luck to you Danmoz. At least with your Company doing well, you can get an account anywhere.

We are in the position of business regularly going over overdraft limit & a business loan. I have also claimed back the charges on our personal account (same bank) but am waiting to claim back the business one till we have a new account elsewhere (in process).

I hate the particular bank and cannot wait to get away from them. They have been next to useless - thats black horses for you!!!

[poppynurse]

I can't see why they would close your account with no notice (I seem to think the banking code says they have to give a month), and for no reason. Have they made a mistake and confused you with some one else? Or do they suspect money laundering or something dodgy? I would be at the bank this am demanding an explanation and not leaving until my queries were answered - how dare they behave like this! Might be worth a word with your solicitor and accountant as well to see what they suggest. Good luck.