Bank Closes My Daughter's Account

[chrissa1]

On Thursday my daughter filled up her car with £30 worth of petrol. Her debit castd bounced even though she had paid in £100 on Monday. She has a £200 overdraft and therefore assumed this money would have kept her within the limit.
When she got home we found a letter from the bank which had arrived on the Tuesday telling her that the account was being closed, effective from 6th December and that she owed them £105.

The effect was immediate though as her card and internet banking could not be used as of the 25th. Luckily, she had a crtedit cartd on her that she rarely uses and was able to pay fore the petrol but what would have happened if she had been far from home with no credit card and with her online banking being inoperative, I couldn't have paid cash into her account for her.

Can they do this so abruptly? They are *ankers so I guess the answer is yes but does she have any redress?

[factor-fiction]

Well the closure seems to be permitted within the terms of the account, and they seem to have given two weeks' notice which seems reasonable. They clearly are not happy, for whatever reason, with the way she operates the account. However she could ask for an explanation and when she asks she should ask how their decision fits in within their policy regarding Treating Customers Fairly.
Or she could just forget it and try to take her overdraft elsewhere

[chrissa1]

This letter was all the notice she had. She is definitely going into see them tomorrow.

[bednobs]

it would be really helpful if you could re-post when she's found out. I am worrying now that lloyds might write to me!

[chrissa1]

I will bednobs. She has managed to open another account with The Cooperative Bank.
The moral of the story is "don't put all your eggs in one basket".

Get up every morning, look in the mirror and say to yourself, "Bankers are s**ts, bankers are s**ts.

[factor-fiction]

Not really, chrissa. How does encouraging your daughter to adopt such an attitude and use such language help? If i understand things properly your daughter exceeded her overdraft, albeit by only a small amount, and was therefore helping herself to money that wasn't hers.

[chrissa1]

Ooh, who rattled your cage factor? So you don't think banks are greedy institutions who use every opportunity to make their profits the obscene numbers they are after being bailed out by you and I. Sadly they are a necessary evil.

[factor-fiction]

It seems to me that if banks make a profit people complain. if they lose money people complain. You seem to be confirming that view.
The UK taxpayer is a major shareholder in some of our banks so if banks make a profit the tax on profits goes to the taxpayer and the taxpayer also benefits from the increase in share value and dividends.
I wish your daughter luck with her new bank and hope she complies with the account terms going forwards.

[chrissa1]

Pax factor. Neatly put.

[joko]

this is just a termnation of her overdraft agreement, not her account.
ive had them before.often

just call an make a new agreement

[mike11111]

Reading the extract that's what I thought, but didn't know if there was any more.

[katekoala]

it will be within the T+Cs. simple. there could be a host of reasons, one of them being that they think your daughter is a financial risk to their business so (as a 'responsible' lender) they have withdrawn the facility of the account. cant see it being the end of the world, they are entitled to do so, same as declining transactions when there isnt enough funds in the account.