Business Account Frozen

Discussion in 'Accounts & Finance' started by alz0r, Oct 14, 2020.

  1. alz0r

    alz0r UKBF Contributor Free Member

    31 4
    Hi All,
    On 6th October TSB put a block on our business account (where I stupidly kept 100% of our working capital). This had an immediate and devestating effect on our small business. We have been unable to pay 6 employees (we pay weekly), pay suppliers or receive any payment from clients. To add to the pain, it looks like in the process of frantically moving money around to try and stay afloat, we may have been scammed out of £4000.

    I have spent a total of 14 hours on hold so far trying to get answers, but have been constantly met with someone putting me on a further hold while they check with an unnamed department, who then report back to me that they can't tell me what's going on and they can't tell me when I will have access to my account again.
    Eventually last Thursday I was told my account is under investigation and that I should receive a phone call on Monday 12th.

    By 4pm on the 12th no-one had called so I called in again to be told somone had left a note on my account saying they wanted "proof of entitlement" for a £110 payment which we had received on the 6th. This was a normal payment from a returning customer and certainly within the normal business behavoirs for the account.
    I sent through the invoice relating to that amount and I was told I would receive a phone call by 5pm telling me my account was now unblocked.
    No-one called, so I called back in today only to be told that the investigations department is now very busy and will get back to me in due course. I've spoken to managers / raised a complaint but I keep just hitting brick walls.

    We are out of pocket thousands of pounds because of the block, had direct debits returned to suppliers as unpaid, incurred countless fees and charges and had to send employees home because we don't have access to funds to pay for materials. We really are on shakey ground at the moment and are considering having to lay people off.
    We've already set up a new account with someone else and are in the process of restoring cashflow by getting customers to pay to the new account but I suppose I am looking for any advice on a) how I can expediate the process of getting access to our bank again and b) what are best course of action is for compensation - I've heard you can now sue your bank?! (
    Any advice appreciated.
    I hate TSB!!!
    Posted: Oct 14, 2020 By: alz0r Member since: Apr 1, 2012
  2. Ian J

    Ian J Factoring Specialist Full Member - Verified Business

    6,188 2,045
    Sounds like one for the media to get involved in as they can normally motivate companies to respond quickly
    Posted: Oct 15, 2020 By: Ian J Member since: Nov 6, 2004
  3. Alison Moore

    Alison Moore UKBF Enthusiast Full Member

    641 123
    It's ridiculous that they can put a whole account on hold over one payment for £110. Facebook and Twitter are often good for getting these sort of things escalated as they don't like negative comments on these pages.
    Posted: Oct 15, 2020 By: Alison Moore Member since: Aug 4, 2016
  4. Bob Morgan

    Bob Morgan UKBF Ace Free Member

    1,026 283
    Posted: Oct 15, 2020 By: Bob Morgan Member since: Apr 15, 2018
  5. Lisa Thomas

    Lisa Thomas UKBF Enthusiast Free Member

    3,584 466
    Call the ombudsman
    Posted: Oct 15, 2020 By: Lisa Thomas Member since: Apr 20, 2015
  6. Darren_Ssc

    Darren_Ssc UKBF Ace Free Member

    1,362 443
    I have a pending ombudsman case that has yet to be addressed. I launched one on behalf of my dad with his personal account at the same time and this has now been resolved.

    From this I'm guessing there are lots of complaints relating to business accounts clogging up the system.
    Posted: Oct 15, 2020 By: Darren_Ssc Member since: Mar 1, 2019
  7. Ray272

    Ray272 UKBF Regular Free Member

    322 48
    Sounds like the fraud may actually be the issue and your bank are not being forthcoming. Strange you mention phone calls. If I was in that position is be at my local branch immediately.

    Maybe TSB have no branches?
    Posted: Oct 15, 2020 By: Ray272 Member since: Jul 5, 2017
  8. paulears

    paulears UKBF Big Shot Full Member

    4,525 1,193
    There was a very similar case on TV this week - with no resolution because the bank don't have to give reasons.
    Posted: Oct 15, 2020 By: paulears Member since: Jan 7, 2015
  9. Alison Moore

    Alison Moore UKBF Enthusiast Full Member

    641 123
    A few years back Banks started a new 'scheme' known as 'dash for cash' where they would find any excuse to put companies on high interest plans pushing them further into debt. Thankfully it was quickly highlighted by the news and the banks backed off, but some business owners lost their livelihoods because of it. Yes the banks were perfectly entitled to do it as it is allowable in their terms - and this sounds like a similar sort of scheme....
    Posted: Oct 15, 2020 By: Alison Moore Member since: Aug 4, 2016