Account closed no warning

[kate2222]

My friend and her husband have a joint business bank account with Nat West, they have had this for about 2 yrs and are always in credit. though this account is no longer used for the business it still has husbands self employed salary from waggon driving paid in and friends salary from NHS. Now with no warning the bank has shut the account. The only discovered this when they went to make a payment with their card. They went into their local branch and girl on desk was very helpful could not understand why account shut and tried to contact business manager but could not locate him. Then they were eventually told over the phone that the BM shut account. Friends husband said surley they should have some warning, the bank told them the BM just decided to close account. Now they have unpaid direct debits etc and are getting charges from them as when requested the bank would not pay them. Ironically though the bank 'opened' the account on 2 separate occassions to receive both their salaries as they could not be stopped in time to be paid in through their works. surley this is theft on behalf of the bank?? The owe the bank no monies as they were in credit. Now the bank has over £1000 of their money and they have now been told it has to go to the treasurer. Is this legal??

[Caspar]

Re: Account closed no warning

If what you have said is an accurate account of all events, then I doubt it would be legal. However, I would not wish to make a comment without knowing a lot more about this as it is a very strange case.

[Judge mental]

Re: Account closed no warning

The bank is not under any obligation to provide an account, the terms and conditions will provide for closing the account by either party, any stipulation or restrictions regarding notice etc will be covered so check the T&C's first, it is a standard that a bank should give at least 30 days notice unless they have good reason not to.

As far as I am aware, having closed the account they have no right to withhold any money in the account (other than to pay any debt to the bank)

I suggest your friend first makes a formal complaint to the bank clearly stating both the reasons for the complaint and an acceptable resolution, which should include the immediate release of all money held in the account or a full explanation as to why it is being legally held, and a claim for all 'charges' incurred as a result of the closure without notice.

The complaint should be sent recorded delivery and the complaint should be followed up by a complaint to the ombudsman.

Here is the Ombudsmans opinion on such matters
http://www.financial-ombudsman.org.u...g-accounts.htm

Stuart

[TUTTSI]

Re: Account closed no warning

Following on from Judge Mentals advice, I would immediatley email the CEO for Nat West mailto:Stephen.Hester@rbs.co.uk detailing by way of a timeline in points ie 1: 2: 3: etc. Explaining exactly what has happened so far and what you were told and who by with dates. Make it easy to read and head it up URGENT. Also, include in your final part of this email that if you do not receive a satisfactory response within 7 days you will complain to the ombudsman and the FSA as they have not treated you fairly. If you have had any additional charges added to this account because of their actions you want them ALL refunded.

This I believe should be taken very seriously as they cannot just take your money and give it to the treasury. Maybe they can close your account but there would be in their T&C's a time line normally 30 days. This happened to my o/h with HSBC but he was in o/d and it was tough to find a new business banking account in a few days.

[kate2222]

Re: Account closed no warning

Many thanks for the replies, which I shall pass on. I will keep you posted. It does sound unbelievable but it's true. I am now having to lend my friend some money to put in her new bank account which they managed to open on Friday.