Bank has just closed my business account - Any Advice?

[Twokids]

My business bank (a high street name bank ) has just sent me a letter saying they no longer want to deal with my accounts - no warning just the letter????

I have 2 accounts with them - as we are a start up money goes in and out pretty regullarly( account has been open 1 year ).

I have always kept credit in the account and pay plenty of charges so I am baffled???

They refuse to tell me why only that it's procedure - I think they reveiwed my accounts after 1 year and because we are not yet bringing in £1 million a month they closed us. - obviously they only want Microsoft and Sainsburys as banking customers...

Has this happened to you?

Any advice tips?

Can you recommend a decent bank who don't ditch you after a year when your balance doesn't reach £1,000,000???

[Jayne]

Hi,

I'd demand to see your Bank Manager, I never heard of banks doing this before, most of them are usually helpful in the first couple of years of business. We lived in our overdraft for the first few years, so cannot believe the'd close your account when you are putting money in.

Jayne :D

[creospace]

You may find this website helpful http://www.bba.org.uk

I can recommend Lloyds bank to you , unless of course its them then maybe i shall be receiving a similar letter!

Gary

[Jayne]

Lloyds have good to me too :D used them for many years.

Jayne

[Twokids]

Thanks all - I have booked a meeting with my manager for Monday so I guess I will learn more.

No it wasn't Lloyds - maybe I'll approach them.

Still baffled - I can only think it's because it was a different type of account with a dedicated business manager ( who we did use quiet a lot ) - maybe they thought we used them too much??

Anyway any more suggestions gratefully received...

[creacom]

Hi

How awful for you !! Make sure that during your meeting on Monday you tell them that this has caused you a great deal of inconvenience and stress !!

We have a business account with the Royal Bank of Scotland and they are very good at what they do. A lot of friends bank with them and say the same thing. But I guess it all depends on the branch and manager !!

If you do decided to change banks then make sure you tell them what happened in your last one and that you are looking for better and more professional service !

Best of luck and let us all know how you get on.':D'

Jacqueline

[Argentice]

Name and shame please :)

[www.sitepal.co.uk]

I am sorry to hear about your bank problems.

My friend had the same problem, he was paying money in and taking it out and after 10 months they closed the account.

To be honest banks want you to be in debt so that they can make their money in interest.

You like my friend are not making them money.

For example i always change over my credit card to a different card every so often & recently virgin refused me a card based on my previous card company.

It was not because of non-payments it was because they could see i manage my money to reduce the interest i pay to them.

All this nice chat that these companies make is false.

The reason in this country so many people in debt is because the goverment now see it is good for business and therfore do nothing to stop banks closing accounts etc.

People being in Debt is big money and people like us are not part of that.

Best

Tony

[James Smith]

Sorry to hear about your predicament.

One possiblity is that something has come up on your record with respect to "money laundering".

The banks get very jumpy (and quite rightly there are prison sentences involved) about companies that looks as if they might be involved in something a bit iffy.

I am not for one second saying this has actually happened, it could be as innocuous as providing a service to someone who is suspicious, and therefore having payment from the black marked account paid into yours, or just a dumb error somewhere along the line (eg your credit rating being trashed.)

The banks tend to act first and ask questions second in this area. You should realise that if it is money laundering, they will dance around the issue as "tipping off" i.e. telling you about it - carries a bigger penalty than actually not spotting it in the first place. If this is the reason, it is quite likely (and rather maddening) that they wont actually tell you this.

It may of course be something else entirely (and banks are as entitled as any organisation not to do business with you), but it may be worth asking the question if there is no rational explanation for their actions.

Anyway, good luck for monday.

Regards,

[daveashton]

Hi

This is not good but I do have a solution

www.lochroe.co.uk this team are ex bankers and provide help on issues like this.

PS they only seem to charge if you get a loan/ investment so well worth a call and please say that BIZAL sent you.

Good luck

[fastfences]

Sorry to hear about your predicament.

One possiblity is that something has come up on your record with respect to "money laundering".

Regards,

You've got to be joking!

'Two Kids' is a client/customer of a business. The business had withdrawn its service without reference to its client; the implication being that the client (Two Kids) has contravened the Terms and Conditions of the banking agreement. This should be totally unacceptable to most customers of any bank - or business - and should be referred to the Financial Ombudsman forthwith, irrespective of Monday's meeting with the bank manager.

I believe everyone here who uses a bank (who doesn't? :wink: ) would be most grateful if 'Two Kids' would offer us the name of the bank that we may need to exercise caution over.

Cheers, Nigel