Frozen Business Account

Discussion in 'Accounts & Finance' started by Owen82, Sep 15, 2020.

  1. Owen82

    Owen82 UKBF Newcomer Free Member

    6 2
    Hello All. Sorry if this has been answered before.

    I run a small engineering business and all has been going well (First Year) until about a month ago my Bank suddenly froze my account without warning. They sent me a letter asking for more information regarding a credit on the account for £3550 from a customer. I went to the local branch that same day and provided the email communication chain between myself and the customer, the business quotation, the customer's acceptance of the quotation and the VAT invoice raised. The lady at the bank was very helpful and said she had sent it to the relevant department that day. I'm a month in and after several calls, complaints and raising this with the financial ombudsman yet to have any joy in restoring access to my account to continue with trading. It's a desperate situation that has damaged my reputation badly. Does anyone know if there is anything that can be done to pressure them to review the documentation provided rather than make me wait (Potentially Indeffinately according to them) and get my business back on track. Thanks in advance
     
    Posted: Sep 15, 2020 By: Owen82 Member since: Sep 15, 2020
    #1
  2. consultant

    consultant Your Business Community Staff Member

    5,664 797
    Get on social media and start complaining.

    Make sure you mention how this bank is going to get your business close.

    Copy in/tag business publications, national press etc (email them as well) - you might end up getting some positive PR/exposure from this bad situation.
     
    Posted: Sep 15, 2020 By: consultant Member since: Jan 21, 2008
    #2
  3. MY OFFICE IN CHINA

    MY OFFICE IN CHINA UKBF Legend Full Member

    5,610 1,319
    Get another account at a new bank up and running ASAP.
     
    Posted: Sep 15, 2020 By: MY OFFICE IN CHINA Member since: Nov 16, 2011
    #3
  4. Owen82

    Owen82 UKBF Newcomer Free Member

    6 2
    Thanks for the reply. I have done that already but there is 48K locked up in the other account which is essentil to buy supplies, pay wages e.c.t. utterly disgraceful..
     
    Posted: Sep 15, 2020 By: Owen82 Member since: Sep 15, 2020
    #4
  5. MY OFFICE IN CHINA

    MY OFFICE IN CHINA UKBF Legend Full Member

    5,610 1,319
    What has your legal advisor suggested?
     
    Posted: Sep 15, 2020 By: MY OFFICE IN CHINA Member since: Nov 16, 2011
    #5
  6. Bob Morgan

    Bob Morgan UKBF Enthusiast Free Member

    950 258
    Last edited: Sep 16, 2020
    Posted: Sep 16, 2020 By: Bob Morgan Member since: Apr 15, 2018
    #6
  7. Bob Morgan

    Bob Morgan UKBF Enthusiast Free Member

    950 258
    Posted: Sep 16, 2020 By: Bob Morgan Member since: Apr 15, 2018
    #7
  8. Owen82

    Owen82 UKBF Newcomer Free Member

    6 2
    Thanks Bob. I have seen this article before and many others. I had no idea how common this is. I wonder how many innocent people are caught up in this type of action? I don’t mind as much these checks taking place, but the fact they are in no rush to review this and protect me as their customer is scandalous. I raised the issue with their complaints department and I was told to wait until the review was done, when I asked how long this should take I was told ‘we can’t give you a timescale sorry’ and was advised to raise a complaint. So in reality I raised a complaint about the amount of time it is taking to review the transaction details, then I was told to raise a complaint about the fact they weren’t dealing with my original complaint... which I then did and I was told they have investigated the complaint and I still need to wait and that was final and advised that I’m perfectly entitled to refer this to the ombudsman if I’m not satisfied. Utter shambles!
     
    Posted: Sep 16, 2020 By: Owen82 Member since: Sep 15, 2020
    #8
  9. Bob Morgan

    Bob Morgan UKBF Enthusiast Free Member

    950 258
    NEVER put all of your eggs in one basket! - Since CONVID-1984 started I now have a large amount of cash secured at home! - Let the 'Bad Comments' commence!
     
    Last edited: Sep 16, 2020
    Posted: Sep 16, 2020 By: Bob Morgan Member since: Apr 15, 2018
    #9
  10. MY OFFICE IN CHINA

    MY OFFICE IN CHINA UKBF Legend Full Member

    5,610 1,319
    If your account has had cash payments in, this will be flagged. Most high street banks will look at cash payments as a compliance 'risk'.

    Get a solicitor to threaten legal action, it may help to speed up the process and get your funds released.
     
    Posted: Sep 16, 2020 By: MY OFFICE IN CHINA Member since: Nov 16, 2011
    #10
  11. Bob Morgan

    Bob Morgan UKBF Enthusiast Free Member

    950 258
    I am sure that the 'Data Trawl' on this site by Natwest, HSBC, Barclays, Lloyds and Santander will have them all 'Trembling in their Boots!' CASH IS KING! - AND ALWAYS WILL BE! For some reason they do not like that, but always insist upon Cash Payments to their advantage!
     
    Last edited: Sep 16, 2020
    Posted: Sep 16, 2020 By: Bob Morgan Member since: Apr 15, 2018
    #11
  12. Owen82

    Owen82 UKBF Newcomer Free Member

    6 2
    Hello. It was purely BACS payments (Low Volume) and no cash at all. I have gone through their complaints process and referred it to the Ombudsman, apparently as they are complying with legal obligations they are immune from legal action..
     
    Posted: Sep 16, 2020 By: Owen82 Member since: Sep 15, 2020
    #12
  13. Owen82

    Owen82 UKBF Newcomer Free Member

    6 2
    Yes I'm now of the same view. I was told not to have several accounts for my business as it could 'Look suspicious' so kept all the business finances in one place. Won't happen again and from now on any profits will be invested in stock so if they want to take that from me they will need to come to my premises and take it. not just 2 clicks on a computer and your whole life is tipped upside down.
     
    Posted: Sep 16, 2020 By: Owen82 Member since: Sep 15, 2020
    #13
  14. Chris Ashdown

    Chris Ashdown UKBF Legend Free Member

    11,868 2,471
    Whilst that payment may have triggered the action, no doubt they will have looked at each and every transaction since then looking for money laundering,

    I your shoes I would assume this is the case and write a full explanation of all you larger transactions and also a good explanation of the market you are in and your customer base. It will take time, but the more information you give them the better there chance of making the right decisions

    In the old days they had business managers who were responsible for their accounts and new what companies did by visiting them, Lloyd's stopped this in about 2010
     
    Posted: Sep 16, 2020 By: Chris Ashdown Member since: Dec 7, 2003
    #14
  15. Owen82

    Owen82 UKBF Newcomer Free Member

    6 2
    Thanks Chris. I may well do this, it’s a really unfortunate situation and all can be explained very easily. As you said a business manager and a face to face meeting with such could of cleared this up quite easily without fuss but I suppose these are the times we live in.
     
    Posted: Sep 16, 2020 By: Owen82 Member since: Sep 15, 2020
    #15
  16. MY OFFICE IN CHINA

    MY OFFICE IN CHINA UKBF Legend Full Member

    5,610 1,319
    It won't be down to the individual manager.

    It maybe one of your customers dealings, in which case you're in the dark and they won't tell you.

    Get legal advice.
     
    Posted: Sep 16, 2020 By: MY OFFICE IN CHINA Member since: Nov 16, 2011
    #16