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Lloyds are closing my business acc - can they do that?


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After a succesfull claim on my business account, I have now received the following letter -


Dear Mr and Mrs xxxxxxx

Re xx-xx-xx xxxxxxxx

Following a review of your account, I am writing to advise you that Lloyds TSB Bank PLC is unable to continue to offer banking facilities to you.

In accordance with the Business Banking Code Guidelines, I am hereby giving you 30 days notice to make alternative arrangements in respect of your day to day banking activities.

Withdrawal of these facilities will take place with effect from 2 August 2007 in order to provide you with the opportunity to arrange alternative banking services.

The current account number xxxxxxxx will remain open purely to service your monthly business loan account number xxxxxxxx. A credit of £xx.xx is required prior to the 24th of each month to cvoer this monthly loan repayment.

Business Manager




Yours sincerely


Can they do that? - I'm not that fussed as I have an alternative set-up, just wondered the legalities?

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I was told by a friend of mine that they had to have a valid reason (e.g always exceeding your O/D facility) for closing any bank account and can't just close it as a result of you taking monies back from them!

Not sure where she got that from though.

I would expect the T&C's of your account to detail when they can close an account. If you don't have these you should be able to find them online or in your branch.

SAR sent 07/03/07

Statements rec'd 14/04/07 (ish)

Prelim Sent 03/07/07

Prelim rejection rec'd 10/07/07

LBA sent 12/07/07

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Also -


Since I have received my charges back I have incurred 2 x £35 charges (again) making it about £50 OD - Should I tell them to stick their account where the sun don't shine, and they can whistle for their £50 (that they charged!!)

I will of course need to make other arrangements to repay loan.


What does everyone think??

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Alliance and Leicester tried to do this to me so I wrote to them asking why and would they consider leaving it open as I felt the closure was in retaliation to my claim. I told them I would write to the Banking Standards Board, The FSA and The Financial Ombudsmen.

They replied stating 'in light of your comments we are willing, on this occaision, to allow your account to remain open and we accept your desire to keep the account open as acceptance of the account terms and conditions. With this in mind, I can confirm that any future charges raised will correctly stand.'

Needless to say I no longer use the account. (My charges were £35.00 a time.) My advice would be to use your parachute account instead. I do!

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