Banks can open or close accounts as they wish. However I think maybe basic account is gotta be provided. As to trading bitcoins, next time write to bank first to see what their policy like
Or figure out how to restructure the transactions 
Topic: Lloyds Bank Account Forcibly Closed - page 3. (Read 13730 times)
Banks can open or close accounts as they wish. However I think maybe basic account is gotta be provided. As to trading bitcoins, next time write to bank first to see what their policy like
Or figure out how to restructure the transactions
A bank is permitted to close your account at any time, for any or no reason. It isn't good customer service to do so, but it is their right to choose who they do business with.
They do appear to have treated you fairly by giving you 2 months to find another bank.
I would suggest that you ask them for a specific reason; and in particular which clause of the terms and conditions, they are invoking to close the account. I would recommend that you do that as a formal written complaint to their complaints department, sent by recorded delivery.
If they still won't give you a reason for closing the account, escalate the complaint to the financial ombudsman service. In practice, the ombudsman will only intervene if the bank have treated you unfairly (e.g. closed the account immediately, without giving you time to change payments over, etc.), but you may be able to at least get a reason.
Bear in mind that if the bank is concerned over money laundering e.g. through bittylicious, then they are legally obliged NOT to tell you under any circumstances. If the bank is being evasive and refusing to answer questions, or they seem to be making up false reasons, then this can suggest that they suspect money laundering.
They do appear to have treated you fairly by giving you 2 months to find another bank.
I would suggest that you ask them for a specific reason; and in particular which clause of the terms and conditions, they are invoking to close the account. I would recommend that you do that as a formal written complaint to their complaints department, sent by recorded delivery.
If they still won't give you a reason for closing the account, escalate the complaint to the financial ombudsman service. In practice, the ombudsman will only intervene if the bank have treated you unfairly (e.g. closed the account immediately, without giving you time to change payments over, etc.), but you may be able to at least get a reason.
Bear in mind that if the bank is concerned over money laundering e.g. through bittylicious, then they are legally obliged NOT to tell you under any circumstances. If the bank is being evasive and refusing to answer questions, or they seem to be making up false reasons, then this can suggest that they suspect money laundering.
Just for the avoidance of doubt, the overdrawn balance is within the allowed amount. The allowed overdraft is higher than this. The other two accounts are in credit. No account has been over any overdraft limit. If this was the problem, they could just change the overdraft limit!!
I don't know your situation, but the letter states quite clearly that your account balance is overdrawn; this is usually a perfectly good reason for a bank to close an account and require immediate repayment of the existing debt.
As it seems, this is the reason your bank is closing your accounts; not your use of them for trading.
As it seems, this is the reason your bank is closing your accounts; not your use of them for trading.
How many times and how long have you been overdrawn?
This alone is a good reason to close your account.
Quote
I think the mistake I have made here is using a personal account to run a business through, although such a thing is not (at all) illegal, banks apparently do not like it.
This alone is a good reason to close your account.
It's a shitty situation to be in. I doubt they'll have any dialogue with you now that they've made their decision to close the accounts. It's better if you put your energy into opening new ones.
And next time don't have your Bitcoin trading account and personal account with the same bank.
And next time don't have your Bitcoin trading account and personal account with the same bank.
I have been a Lloyds bank customer since around 1978. Last week I received the following letter from my bank:
There were similar letters for my other 2 Lloyds bank accounts. The first account I use as my personal bank account, the second is a joint account with my wife, and the third I use for Bitcoin trading through Bittylicious. This account has been open about 4 months. Its had quite a bit of money go through it but in fact its the same money going round in circles, and I make a small percentage on what goes through.
A visit to the bank elicited only one more piece of information – they would not tell me why they had done this, under their T&C they are entitled to do this without explanation.
This is quite a serious issue for me – my Bittylicious trades can switch banks just like that but I really would like to keep my own bank account, and my wife is livid and does not understand at all. I think the mistake I have made here is using a personal account to run a business through, although such a thing is not (at all) illegal, banks apparently do not like it. I imagined they would tell me that the account needed to be upgraded to a business account if it did, but I had no other communication from them. But I dont know what the problem here is, if its Bitcoin related, or not. I could add that the accounts have always been “well run” overdraft limits have been respected etc. I feel like I am in a Kafka novel, accused but no-one will tell me what I am accused of, and noway for me to even verify if I did do what I am being accused of, because I don't even know what it is!
I'd like to open a dialog, but at the moment they are not talking. Any advice would be appreciated.
There were similar letters for my other 2 Lloyds bank accounts. The first account I use as my personal bank account, the second is a joint account with my wife, and the third I use for Bitcoin trading through Bittylicious. This account has been open about 4 months. Its had quite a bit of money go through it but in fact its the same money going round in circles, and I make a small percentage on what goes through.
A visit to the bank elicited only one more piece of information – they would not tell me why they had done this, under their T&C they are entitled to do this without explanation.
This is quite a serious issue for me – my Bittylicious trades can switch banks just like that but I really would like to keep my own bank account, and my wife is livid and does not understand at all. I think the mistake I have made here is using a personal account to run a business through, although such a thing is not (at all) illegal, banks apparently do not like it. I imagined they would tell me that the account needed to be upgraded to a business account if it did, but I had no other communication from them. But I dont know what the problem here is, if its Bitcoin related, or not. I could add that the accounts have always been “well run” overdraft limits have been respected etc. I feel like I am in a Kafka novel, accused but no-one will tell me what I am accused of, and noway for me to even verify if I did do what I am being accused of, because I don't even know what it is!
I'd like to open a dialog, but at the moment they are not talking. Any advice would be appreciated.
Jump to: