Hi,
Any updates from OP or others would be greatly appreciated. This happened to be back in 2013 .. I had 2x lloyds accounts get shut down with 2months to leave. I'd been trading quite large volumes via lbc and bittlylicious. What was most upsetting is that as soon as I got notifies I applied online to get accounts elsewhere and was denied. Im not sure if it was related but I assume so. Worth noting is that my credit score was and still is perfect. Thankfully I have another account elsewhere but have been nervous about buying bitcoin from exchanges.
Can anyone provide an update as to whether they had any further issues either with original or other banks?
Thanks:)
Topic: Lloyds Bank Account Forcibly Closed (Read 13707 times)
I've had my LLoyds account recently closed, I can assure you it was because of dealings with Bitcoin, I had my account for 15 years, and had used it for a booming ebay account with up to 5k going through it per week, they never complained that I didnt have a business account, although they did suggest I open one, That was back in 2007 wayyyy before Bitcoin.
Recently I got a letter similar to this one but without a number to call, when visting the branch they told me to write a letter, which I will do and I will try to keep you posted on the outcomes. My situation is even more obvious than this one for reasons I can't really go into. I have a blog and trade frequently on Localbitcoins, so I'm not here to troll, just letting you all know that LLoyds are 100% Bitcoin hostile,
Recently I got a letter similar to this one but without a number to call, when visting the branch they told me to write a letter, which I will do and I will try to keep you posted on the outcomes. My situation is even more obvious than this one for reasons I can't really go into. I have a blog and trade frequently on Localbitcoins, so I'm not here to troll, just letting you all know that LLoyds are 100% Bitcoin hostile,
It's a little hard to determine whether it was shut because of using it for Bitcoin or because it was overdrawn. Anyone else want to test out this theory?
it was likely because he had a large amount if money going into and out of his account compared to his average daily balance ShakyhandsBTCer, Baitty, If you have something to add, please read at least the first page: the accounts were not overdrawn.
It was certainly bitcoins that upset them. What drew attention to the account was many small deposits and larger overseas payments.
I have now shut down my Lloyds trading account they dont want it and it seems dangerous to keep it open longer.
I have approached every other High Street bank and asked if I can open a Business account and told them that the business involves Bitcoins. The answer has been in all cases, a rapid, "No You can't".
Even a few unusual banks like Bank of Cyprus and Bank of China, (Yes, they are Uk high street banks as well.)
I believe now that the current situation is that if you run a business that involves bitcoins you cannot be upfront about this with your bank or they will shut you down. They will most likely do that anyway once they discover.
It was certainly bitcoins that upset them. What drew attention to the account was many small deposits and larger overseas payments.
I have now shut down my Lloyds trading account they dont want it and it seems dangerous to keep it open longer.
I have approached every other High Street bank and asked if I can open a Business account and told them that the business involves Bitcoins. The answer has been in all cases, a rapid, "No You can't".
Even a few unusual banks like Bank of Cyprus and Bank of China, (Yes, they are Uk high street banks as well.)
I believe now that the current situation is that if you run a business that involves bitcoins you cannot be upfront about this with your bank or they will shut you down. They will most likely do that anyway once they discover.
That's bad news. So the only safe way of trading Bitcoin in the UK is through cash and locally? otherwise you risk losing your bank if you use any of the UK banks.
ShakyhandsBTCer, Baitty, If you have something to add, please read at least the first page: the accounts were not overdrawn.
It was certainly bitcoins that upset them. What drew attention to the account was many small deposits and larger overseas payments.
I have now shut down my Lloyds trading account they dont want it and it seems dangerous to keep it open longer.
I have approached every other High Street bank and asked if I can open a Business account and told them that the business involves Bitcoins. The answer has been in all cases, a rapid, "No You can't".
Even a few unusual banks like Bank of Cyprus and Bank of China, (Yes, they are Uk high street banks as well.)
I believe now that the current situation is that if you run a business that involves bitcoins you cannot be upfront about this with your bank or they will shut you down. They will most likely do that anyway once they discover.
It was certainly bitcoins that upset them. What drew attention to the account was many small deposits and larger overseas payments.
I have now shut down my Lloyds trading account they dont want it and it seems dangerous to keep it open longer.
I have approached every other High Street bank and asked if I can open a Business account and told them that the business involves Bitcoins. The answer has been in all cases, a rapid, "No You can't".
Even a few unusual banks like Bank of Cyprus and Bank of China, (Yes, they are Uk high street banks as well.)
I believe now that the current situation is that if you run a business that involves bitcoins you cannot be upfront about this with your bank or they will shut you down. They will most likely do that anyway once they discover.
It's a little hard to determine whether it was shut because of using it for Bitcoin or because it was overdrawn. Anyone else want to test out this theory?
It is weird that they closed all your accounts. I think I've had an account closed by the bank in the past when I left it overdrawn for too long. Not sure if that's what happened to your one account at least. The comments you've gotten make me think maybe it had something to do with the BTC trading account and they were looking for an excuse to close all your accounts and the overdrawn issue is the excuse they used.
Did you have an overdraft fee on multiple accounts? I don't get why multiple accounts were closed. This type of thing should be illegal. After a contract is signed to do business their should be no way they can back out of the deal without good reason. This is a crazy system we have in place and all signs point to things getting much worse. Soon there will be no option to move to another bank.. Very sorry for the inconvenience they've caused you and your wife.
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It appears that your account is overdrawn. Overdrafts are generally considered as being unauthorized loans and are very risky for the bank. If your account was often overdrawn then this may be the reason for the account closure.
I'm taking "Operation: Choke Point" international. You must turn away from Bitcoin and come back to fiat
seek exorcism
So, I really would like to know which banks are not funny about Bitcoin, preferably without spending a week finding out in each case.
Does anyone have advice as to which Uk bank to use?
Does anyone have advice as to which Uk bank to use?
There is the List of Bitcoin Hostile (and friendly) Banks
unfortunately, it looks neglected and has no UK entries yet.
Just switch to another bank, it was a matter of time when theese thing were going to start happening.
large banks scared of bitcoin, well, i call that a win in any case.
large banks scared of bitcoin, well, i call that a win in any case.
I use fidelity investments for checking. Being a brokerage they seem to be a little less restrictive with how I choose to use my money.
Just curious as to how you deposit cash into your Fidelity Investments checking account in the UK? Do you use third party ATMs?I am in the US and simply use direct deposit. The product I use is the mysmartcash account. I am not sure if there is a UK equivalent.
I use fidelity investments for checking. Being a brokerage they seem to be a little less restrictive with how I choose to use my money.
Just curious as to how you deposit cash into your Fidelity Investments checking account in the UK? Do you use third party ATMs?
I use fidelity investments for checking. Being a brokerage they seem to be a little less restrictive with how I choose to use my money.
Does anyone have advice as to which Uk bank to use?
I have never had a problem with Nationwide
Have you told them you're doing something bitcoin-related?
More broadly, we could do with a banking version of something like http://bitlegal.net/ telling us which banks are happy with bitcoin-related businesses, which ones actively try to find them and shut them down etc.
Does anyone have advice as to which Uk bank to use?
I have never had a problem with Nationwide
also take no notice of people commenting about an overdraft
they're probably american
if a cheque bounces accidentally out there it's a case of 'don't taze me bro' and call the cops
luckily in UK people are a little more understanding and just post back requesting payment after returned before small claims, if ever gets to that point
not hating on Americans, just saying their system is very severe to individuals
this will not in any way reflect on your credit rating, it's Lloyd loss for being douches
a few banks may well go under this year, again, so steer well clear of RBS for one
also Barclays are facing big court cases over gold, libor manipulation etc and are scumbags anyway, so avoid like black death
Nationwide are pretty n ice people, no problems ever, no charges etc. they still have that cosy building society feel but with bank high street branches
I'm taking "Operation: Choke Point" international. You must turn away from Bitcoin and come back to fiat
Accounts being overdrawn was not an issue in my case, nor I suspect 5flags.
So I approached Metrobank, I was honest about the nature of the business (fool!!) and they spent a week deliberating during which time I understand it went up several tiers of management, before the answer came back, NO. And they said that they did not want to bank any business in a number of classes, and one of those is bitcoin. I asked for another example and he gave the example of the adult industry.
So, I really would like to know which banks are not funny about Bitcoin, preferably without spending a week finding out in each case.
Does anyone have advice as to which Uk bank to use?
So I approached Metrobank, I was honest about the nature of the business (fool!!) and they spent a week deliberating during which time I understand it went up several tiers of management, before the answer came back, NO. And they said that they did not want to bank any business in a number of classes, and one of those is bitcoin. I asked for another example and he gave the example of the adult industry.
So, I really would like to know which banks are not funny about Bitcoin, preferably without spending a week finding out in each case.
Does anyone have advice as to which Uk bank to use?
I think everyone is reading too much into it.. Having a client with overdrawn accounts, even if it's "within the allowed amounts" is not good business for a bank... Banks make money off your money (balances and loans) and at least on the surface it appears you are a liability to them, BTC aside..
Rubbish. A retail bank earns money by borrowing (deposits) and by lending (overdrafts and loans). An authorised overdraft is simply a type of loan. No bank would ever close an account because the account is overdrawn within permitted limits. In fact depending on the terms of the overdraft it might well be a breach of contract to do so.
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