Tide bank frozen

[frank759]

Not quite sure what to make of this.

We have a Ltd. company with accounts at Natwest and Tide.

We use Natwest for main day to day operation and transfer into Tide to put money aside for tax & paying some suppliers.

Last week Tide froze the account asking why we're transferring money (from another bank account with the same company name!). I explained why and even showed them a Natwest statement as proof.

5 days later their support is still taking 24 hours for each reply and simply saying they're checking for money laundering and that they're allowed to.

I can understand if that's a process but it's another thing freezing access to our money for this amount of time. We can't pay suppliers or operate the business.

I just never thought something like that could be allowed to happen if we provide what they've asked for. How can they reply saying they'll sort it when they sort it, so just wait.

Suppliers won't let us off the hook for payments because they're doing this...

This seems crazy it can be allowed (even the ombudsman would surely take an age to do anything and I need access to our money now)

What should I do?

 

[Gyumri]

The amount must have raised a suspicion with Tide. A bank has to report a suspicious transaction and wait for clearance.

Frozen bank account and no explanation? Suspicious Activity Reports and the high street bank customer - Brett Wilson LLP

Has your bank account been frozen without any explanation from your bank? Or is your bank account under investigation? What is a Suspicious Activity

www.brettwilson.co.uk

 

[frank759]

Its small amounts per day like £500 going from Natwest to Tide savings account, and its coming from a bank account with the same business name.

Regardless, its the waiting for clearance I'm failing to understand. Is it genuinely the case that they can freeze a business bank account indefinitely to the point they can't pay bills (and hence possibly go out of business) and then nobody is to blame once they see the transactions are genuine?

 

[fisicx]

Tide automates everything. No humans were involved in any part of the process. You are the victim of a computer program. There is pretty much nothing you can do but wait.

Why can’t you use your NatWest account to pay your bills?

Also worth remembering that Tide only provides financial services. Banking is a separate company.

 

[frank759]

Tide automates everything. No humans were involved in any part of the process. You are the victim of a computer program. There is pretty much nothing you can do but wait.

Why can’t you use your NatWest account to pay your bills?

Also worth remembering that Tide only provides financial services. Banking is a separate company.

80% of our cash is in the Tide account so in a few days we'll have no cash left in the Natwest. I just still can't believe this is allowed to happen - it could kill our business I mean is it days, weeks, months..

 

[UKSBD]

80% of our cash is in the Tide account so in a few days we'll have no cash left in the Natwest. I just still can't believe this is allowed to happen - it could kill our business I mean is it days, weeks, months..

Pretty sure there was a similar post on here not long ago, but can't find it now

With that one it had been going on for 6 months and the persons account was effectively closed with no way of getting the money back.

I thought that was Tide, but not sure and a search doesn't bring up the post, anyone else remember it?

 

[frank759]

Pretty sure there was a similar post on here not long ago, but can't find it now

With that one it had been going on for 6 months and the persons account was effectively closed with no way of getting the money back.

I thought that was Tide, but not sure and a search doesn't bring up the post, anyone else remember it?

How can that happen legally though - its not Tides money. Surely if they take it that's embezzlement and illegal?

 

[UKSBD]

Tide isn't a bank, you need to read their terms really carefully

 

[frank759]

Well it says this on their site and we do have an account with that sort code:

Is my money safe with Tide?​

Yes.
If you have a ClearBank account, like most of our members, then eligible deposits up to £85,000 are protected by the UK Government’s deposit guarantee scheme, the Financial Services Compensation Scheme (FSCS). You can tell whether your account is a ClearBank account, if its sort code is 04-06-05.
In the past we offered e-money accounts to new customers, which we no longer do. If you still have an e-money account with us, then the funds in your account are stored and protected. With an e-money account, your money is never invested or loaned out, and is safeguarded in line with regulatory requirements. You can tell whether your account is a legacy e-money account, if its sort code is 23-69-72.

 

[fisicx]

Tide is not a bank. All they do is provide financial services. Their automated account monitoring has triggered a flag and locked your account. That’s the way it works. Your money is still there, you just can’t get to it.

 

[frank759]

I know - but what I'm saying is that money can't just disappear. They can't take it and someone else can't take it, so it has to come back to us. Its why I'm surprised to hear the story above about someone else not getting it back. Someone must have took it because money can't disappear, its traceable, especially if in a bank

 

[UKSBD]

I know - but what I'm saying is that money can't just disappear. They can't take it and someone else can't take it, so it has to come back to us. Its why I'm surprised to hear the story above about someone else not getting it back. Someone must have took it because money can't disappear, its traceable, especially if in a bank

I can't find the post anymore, so no idea what happened in the end.

 

[fisicx]

I can't find the post anymore, so no idea what happened in the end.

I seem to recall it was someone using Wise and the large sums involved triggered money laundering flags.

 

[Gyumri]

There should be a person who would have forwarded the SAR to the NCA or whatever it is called and then if no response is received ie., clearance is deemed to have been given within seven days then Tide should be free to unblock your account.

Personally with a name like Tide which is supposed to be against money laundering I would get your money out asap and use a safer institution or spread your money between two high street banks as they generally cannot be trusted.

If Tide goes belly up your ship will have sailed.

If you read their blog they say that they are no longer going to hold funds for 3rd parties so it looks like your arrangement of transferring money from Nat West is triggering the problem. They've also got about 16,000 reviews on Trust Pilot which don't make for happy reading.

Providing financial security for our members - Unsupported Business Models | Tide Business

As a financial services provider with more than 300,000 business customers and counting, we take safety and security very seriously. Not just how we manage and protect our members’ funds, but also our broader responsibility to ensure Tide current accounts are used by genuine businesses and not...

www.tide.co

 

[UKSBD]

I seem to recall it was someone using Wise and the large sums involved triggered money laundering flags.

Yeah, found it now - https://www.ukbusinessforums.co.uk/threads/head-up-scam-on-digital-banks.422375/#post-3190240

Is there much difference between Wise, Tide and these similar new systems?

 

[WaveJumper]

Maybe a lesson to be learnt here don't use "faceless" on line institutions to hold your hard earned cash, at least if they linked to a high street branch you can have the chance to in there and have a meeting to discuss.

 

[fisicx]

Is there much difference between Wise, Tide and these similar new systems?

Not sure there is. Most of them just provide financial services. They aren’t banks and they often don’t have human support - which means there is none to talk to if it all goes pear shaped.

 

[MBE2017]

I use Tide, so far with zero problems in my first year. Maybe take a look at Mettle or one of the well known high street banks going forward. Please update with the outcome OP, I am certainly interested in the outcome.

 

[ctrlbrk]

Not sure there is. Most of them just provide financial services. They aren’t banks and they often don’t have human support - which means there is none to talk to if it all goes pear shaped.

I'd say your assessment is too extreme.

Self-checkout at Tesco were implemented to save on human resources, but they are not 100% unmanned. You must provide someone to manage problems or unexpected situations - there are simply fewer humans.

Situation is similar for these digital banks - or whatever you want to call them - I would say. They make use of AI to speed up processing and save on people, but they still have got to have someone if things go wrong. It would not make sense if they didn't.

You just have to wait longer.

 

[fisicx]

You just have to wait longer.

Indeed. But they don’t have time to wait. Bills need to be paid but the cash isn’t available. They might be able to get a loan but it could take months to resolve the problem. Even going to the ombudsman isn’t a quick route to resolution as they are equally busy.

 

[Bob Morgan]

Spread your Risk! Do not rely upon Single Accounts, or the arrangement above. Also have a Plan B, C and D for when Bank Systems Fail or 'Computer Says NO!' 'Cash' can also be a good fallback position too.

 

[Paul Kelly ICHYB]

'Cash' can also be a good fallback position too

Whilst you are right, sadly, using cash can also be fraught with issues and barriers!

 

[WaveJumper]

I remember those days when you spoke to a human being and the answer was "sorry the computer says no" now its AI and you struggle to find a path to actually communicate with a human especially if relying on an online platform.

Fortunately we still have @Ozzy .........but how do we know it's really him ?

 

[Bob Morgan]

Whilst you are right, sadly, using cash can also be fraught with issues and barriers!

Define 'Issues and Barriers!' - So long as it is accounted for properly, I have never had a problem.

 

[Ozzy]

Fortunately we still have @Ozzy .........but how do we know it's really him ?

Ha Ha ha; I actually asked ChatGPT to write a reply pretending to be me to post as a reply to this but it refused on moral grounds ?

 

[frank759]

2 days on and still no further ahead. I've now resorted to seeking help through a solicitor although the costs are crazy

Spoke to FCA who said they believe Tide are way overstepping the mark on the time taken to check things - we can literally go out of business if we can't access the cash to pay suppliers.

I'm still in shock about how this can happen and that nobody is there to help from a regulatory position - lets say we go out of business when we've done nothing but transfer funds from one account to the other. Are they going to take responsibibility?

 

[NewUserHere]

2 days on and still no further ahead. I've now resorted to seeking help through a solicitor although the costs are crazy

Spoke to FCA who said they believe Tide are way overstepping the mark on the time taken to check things - we can literally go out of business if we can't access the cash to pay suppliers.

I'm still in shock about how this can happen and that nobody is there to help from a regulatory position - lets say we go out of business when we've done nothing but transfer funds from one account to the other. Are they going to take responsibibility?

Did you get this sorted?
How long did it take?

 

[ash799]

Did you get this sorted?
How long did it take?

these type of e-money institutions usually do this, anna, starling, tide, they would have most likely said we're unable to offer you our servces, send us a alternative bank account to transfer the funds into that matches the company name, how long it takes to get to this point is not clear, ive heard 3 days, 30 days, 3 months etc, but eventually (even if you provide everything they ask for) they close your account.

 

[David Griffiths]

Did you get this sorted?
How long did it take?

The OP hasn't been seen since March 2024, so don't hold your breath

 

[HandyChrisDIY]

I've had nothing but trouble with Tide, all great initially but when I tried to pay for some services I was getting messages saying the type of card wasn't accepted - some places it was showing it as a pre-paid card.
I ended up switching to a Natwest account - no issues and I got freeagent for free.

 

[Paul Kelly ICHYB]

some places it was showing it as a pre-paid card.

It is essentially a prepaid card!!

Tide is not a bank, it is a fintech that offers banking services!!!

 

[HandyChrisDIY]

It is essentially a prepaid card!!

Tide is not a bank, it is a fintech that offers banking services!!!

Yea, didn't pickup on that though when setting up an account for a new business. Lesson learnt!

 

[ctrlbrk]

It is essentially a prepaid card!!

As far as financial transactions go, is there a difference between a prepaid card and a debit card?

 

[Paul Kelly ICHYB]

As far as financial transactions go, is there a difference between a prepaid card and a debit card?

Not sure, but one is tied to your bank account and one you need credit to use???

 

[ctrlbrk]

Not sure, but one is tied to your bank account and one you need credit to use???

You're probably right. In my mind they were one and the same, but thinking it through, paying with a debit card tied to an account with 0 balance would send you into overdraft but you'd still be able to carry out the transaction, whereas you probably couldn't complete the transaction with a pre-paid card.

Having said that, I'm using Wise, which presumably is similar to Tide. I don't have to "put money" onto my card to use it. It works more like a debit card, or at least that's what it feels like.

 

[Ozzy]

As far as financial transactions go, is there a difference between a prepaid card and a debit card?

One you have to pay money onto the card first, and then you deplete that money as you spend on it. The other is a 'loan' you borrow the money and pay it back later.

Ironically, due to FCA consumer protection regulations, paying with a credit card provides you with more consumer protection than you get with debit or pre-paid cards. So if you are good at financial management and ensuring you don't spend more than you can afford, using a credit card whenever you buy electronics or other risky or expensive products, it's worth it for the extra consumer protection it gives. More info on this on the Money Saving Expert site

 

[ctrlbrk]

The other is a 'loan' you borrow the money and pay it back later.

Thanks Ozzy.

The quoted bit, doesn't that apply to credit cards, not debit cards?

 

[Ozzy]

The quoted bit, doesn't that apply to credit cards

Yes, sorry, my mind merged several comments into one and yours

 

[elaine@cheapaccounting]

Whilst not being a Bank Account in the traditional sense of the word it is worth noting that "Tide offers bank accounts provided by ClearBank® Ltd (ClearBank) (account sort code is 04-06-05). ClearBank is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority under registration number 754568. Eligible deposits with ClearBank are protected up to a total of £85,000 by the Financial Services Compensation Scheme (FSCS), the UK's deposit guarantee scheme."

From my experience many use these types of accounts (Tide, Mozo, Mettle, Starling - some are banks, some are not) etc very well often transferring funds to other banks where there would be the usual FSCS Protected.

For small and straight forward businesses these types of accounts work very well with the added bonus of built in bookkeeping negating the need for additional accounting in some cases - a cost saving.

They certainly have a place ..... as long as users are aware of the pros and cons.

 

[HandyChrisDIY]

Whilst not being a Bank Account in the traditional sense of the word it is worth noting that "Tide offers bank accounts provided by ClearBank® Ltd (ClearBank) (account sort code is 04-06-05). ClearBank is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority under registration number 754568. Eligible deposits with ClearBank are protected up to a total of £85,000 by the Financial Services Compensation Scheme (FSCS), the UK's deposit guarantee scheme."

From my experience many use these types of accounts (Tide, Mozo, Mettle, Starling - some are banks, some are not) etc very well often transferring funds to other banks where there would be the usual FSCS Protected.

For small and straight forward businesses these types of accounts work very well with the added bonus of built in bookkeeping negating the need for additional accounting in some cases - a cost saving.

They certainly have a place ..... as long as users are aware of the pros and cons.

Yea that's probably fair, but in my case I was trying to pay for an ad campaign and some software subscriptions with my Tide 'card' and despite having money in the account it was linked to, they were rejected because they're 'pre-pay'. Aside from that I've not had any other issue, like the app but this was a deal breaker so switched to Natwest.