Natwest closed my personal account to reach my business partner

[Gingerfrog]

Hello everyone,

 

I've banked with natwest for 4 years now, first as a personal account holder, and 2 years ago opened a business account with my business partner, who also was a personal account holder. I feel the need to clarify that, though we are good friends, our relationship as far as Natwest is concerned is purely profesional.

 

As I approached the till to pay for my fuel, the usual dread of relying only on the plastic in my wallet daunted on me again. Not that the account was empty, but since my cards all suddenly got demagnetised during a ski holiday just before I was due to settle all bills, I don't trust the little buggers one bit. Still, that mishap was abroad, and though fuel prices have been rocketing to record heights, there was more than enough money on the card to cover the bill.

 

Imagine therefore my surprise as the till girl tells me my card was declined, though it could be their system. I crossed my fingers and other lucky tricks, but no luck was to be had. I tried a couple more times, but had to resign to the fact that card was out of action and switch to the credit card. Could have been worse!

 

Obviously I was fuming, so much so that 1st thing I did as I walked through the door was a swift call to Natwest customer service. Maybe a bit too rushed actually, for as I was holding the phone, a quick check on my online banking revealed that my account had been removed, and I also spotted a letter that had come through earlier in the day, very "bank" looking type of letter. The letter went as such:

 

"Dear Mr..

Having recently reviewed matters carefully, the Bank no longer wishes to provide you with banking facilities"??

 

1st I heard of it!

 

It stated that, as of the 6th August 2011, my account would be terminated and I would have to arrange for an alternative solution. I had a few problems with all this, not the least for it was the 14th of June and I still had supposedly 2 months left of banking,

 

It didn't mention anything about my personal savings, or my business accounts, which was weird as the number on the front of the letter was for the business line.

 

Someone eventually picked up the phone and so started the eternal waltz of the call centers, passed from operator to another, from not helpful to plain ignorant. The only thing that was established was that I would have to call back during normal business hours, as no one could help me right now, being 17.30 and all, and that though they have my phone number, my email address, DOB, address, mum's cup size..... I would have to be the one doing the calling as they could not be expected to contact every client whose account they **** up!

 

So 1st thing this morning I was back on the old blower to get some sense out of it all. I was very swiftly passed onto the collection dept. After a series of security questions came the weirder one all together: "Do you know a Mr J P..?"

I indeed knew the person in question, it was my business partner.

 

What came next left me dumbfounded.

 

"We are trying to get hold of Mr P regarding issues with his account. We will reopen your account as you have contacted us, but if we still are without news from Mr P within the next 30 days, we will take actions again." When questioned about the legalities of their action, the operator told me to look into the terms and conditions

 

I had just been told that in order to chase a debt with my business partner on his personal account, Natwest had decided to close my personal account, as well as his other account (though that is more a normal approach, or at least acceptable as far as I'm concerned), and if we had waited another day, the business accounts would have been next, considering it is a ltd company account, and not a partnership.

 

I am now looking at transfering all my personal accounts away from there as quick as possible.

 

Does anyone know the actual legalities of such actions?

 

Thanks in advance

[MARTIN3030]

Shocking.

So can you confirm that the account they blocked was your personal one or business one ?

And if its a business one is your partner a signatory of this account ?

This sounds not only like a breach of Data Protection,but also extremely unfair business practices.

[Gingerfrog]

Hey Martin,

 

Thanks for the prompt reply. The account that was closed was my personal account, therefore nothing to do with Mr P. We both are signatories on the business, which in the eye of Natwest seems to mean that I am partly responsible for his personal banking.

 

The worst I feel was when, after getting a bit frustrated on the phone, the operator told me "We have taken your account offline to make contact with Mr P, and seeing that you've called us pretty much straight away, looks like our tactic works"!!!

 

As mentioned previously, P is actually a very good friend of mine, and I was fully aware that his private finances where not in order, but to be called and told that I could risk loosing all accounts if P didn't sort out his account could throw a spanner in the works of any businesses where the relationship between partners is solely professional.

 

I don't expect the dragons in the den would look kindly on someone who put them in that position. And I think that is my biggest problem, the fact that by taking such action, Natwest is not only forcing a client to push a relation to contact their collection agency, but are also making them reconsider (or at least in theory) the trust they put in their partner.

 

Ta

[MARTIN3030]

Ok understand.

Please bear I will help on this once it is established what recourse there is.

If others have any comments or thoughts-please feel free.

I will move this to business bank forums.

[Surfer01]

Is it a partnership or limited company where you are involved with the friend. If a partnership they could be using his as the excuse but still not very ethical. Surely your personal accounts are not linked in anyway? Maybe a call to FOS may be in order.

[Gingerfrog]

No, the business is a limited company, we are joint directors. Our personal accounts are unlinked, based at different adresses.

[Surfer01]

Then I would think that they have breached their T & Cs plus more importantly the Data Protection Act and thsi has caused you undue distress. NatWest have acted illegally and could face a large fine.

[Gingerfrog]

Well a week has gone by, and this is all getting a bit tiresome!

 

I spoke to my partner, and he called Natwest immediately and has a meeting arranged with them later this week

 

I called Natwest back on Wednesday to get some clarifications as to what allowed them to take such actions against me. After a short chat, the operator said he was "surprised" with my claims, said it was not a common practice, and whoever told me it was misinformed me. I immediately asked to speak to a manager, which I was told was extremely busy, and would call me back "soon". I got a call on Friday from a mobile number that was totally inaudible, and no one answered when i called it back.

 

At least I expected that all was back in order. Silly me!

 

My account was deactivated again on Saturday, as I was at the checkout of the Supermarket. I called my 24hr banking, but was told again that it was collection I needed to talk to, and they were not opened til Monday morning, and only they could reactivate my account. I called Mr P.. to see if his account had been taken down too, but he assured me that he just used his card, and his account was still online.

 

I called Natwest 1st thing this morning. They once again told me that the disturbance was due to Mr P.'s account. They immediately unlocked my account, but kept insisting that our accounts were somehow linked, though i have no access to his account as the operator reminded me when I asked for the balance outstanding. They did not even explain to me how I could stop such thing from happening, apart from calling their services (during business hours) when I'm stuck at a till in the middle of nowhere.

 

I have filed an official complain with both Natwest and FOS and will be spending my afternoon looking for a new bank.

[skippitydoodah]

:mad2:I'm pleased to see that I am not the only one to be treated like this. I like you (Gingerfrog) have had exactly the same treatment, same format. I went to the CO-op one day in May to find my card wouldn't work. Came home and checked my account to find it also had disappeared. Phoned them up and found that they have my personal account linked with the Limited Company I USED to be involved in but gave up all shares directorship etc in 2009. They are trying to pin my ex husband who I ran the company with down.

Like you they activated my account. Then on the 22nd May I got the same letter telling me I had two months to make alternative banking arrangements. I have my current account and Mortgage with them.

I phoned them, like you, the business centre and was told my signature is still on the account, despite my ex's assurances it had been removed and my having thought the same.

Today I have come home to a Notice of Intent to demand full repayment - - of my mortgage.

They gave me 72 hours to comply, its dated 31st July, and I have received it on 5th August, of course outside business banking hours.

 

Have you had anything further whether they have breached any conditions, can they really be allowed to get away with this????

[Surfer01]

They cannot link a personal account and a limited company business account as these are two unrelated seperate entities and they are acting illegally. It is like them closing your account because a complete stranger defaulted on theirs. Thye have no right of off set unless they were given permission orf someone stood as guarantor.

[kaz2465]

I am in a similar situation but I am struggling to find proof of the illegality of Natwest actions - any links would be appreciated