Laws on Bank's Closure of Accounts

[madsam]

Could someone give me some information on the laws surrounding banks closing your accounts. I've combed over the terms and conditions of the bank in question but can't find any mention of it, but I'm sure there are some rules on notice they must give, return of funds, etc.

[stormski]

Hi,

 

I can...Banks have their own laws...or so they believe....so do what they want...you need to fight back.

 

Regards,

Stormski

[cj1951]

From what I understand from the FOS-there is no law as to how much notice has to be given by banks on the closing of accounts, other than 'a reasonable amount'. I would say that this is arguable in many ways-depending on the type of account!! I think you would be 'flogging a dead horse' trying to get anywhere with the FOS., as they tend to make the rules up, as they go along and most important of all they are not an impartial independent service, being financed by the banks, insurance companies & etc.!! At the end of the 'day' (probably a year +) they will most likely rule in favour of the bank.

 

I would suggest that before you take any action - see a solicitor and try and get it 'Legal Aided' (saving you some monies) or from one of these 'Free Legal Advice' places - not the CAB, as they will refer you to FOS. See what they have to say. I am minded that if a person is working overseas on a contract anything less than at least 6 months notice would (in my view) deem to be unfair on the account holder. A lot of people nowadays are having to work overseas, due to the financial crisis and the 'World Economy' and the banks needs to come into the 21st. Century and catch up!

 

Best of luck!

[MARTIN3030]

Welcome to the site.

The FOS dont actually make the rules up.and the banks as well as all other Financial Service Providers are regulated by codes of practice from both inside and outside their own industry.

Whilst it can be said that the FOS can be a tedious route of complaint,lets not forget that over the last couple of years,the Banks have stretched the regulators resources both in the Courts and also outside of it.

With good funding and good management behind the scenes,the FOS would be better placed to fulfill their true roles more effectively.

Unfortunately there have been failings on both sides.

There is adequate protection and regulation in place to deal without the need for Solicitors,if the complainant has both the strength and time to devote.

[cj1951]

I agree with you to some extend, but from my own dealings with the FOS, the 'rules' tend to be made up. There are 'basic' rules & regulations, but as you state, these have been stretched by the financial institutions to meet their own end.

The FOS, are not and independent impartial service, being financed by the very people they get complained about.

 

I think it is long overdue for the FOS to be truly independent, probably financed by the government on a levy from the financial institutions - but with no financial institution having any power to make decisions on how it is run.

 

Is there not some sort of campaign 'up & running' for this to happen??

[Airwolf]

I think it is long overdue for the FOS to be truly independent, probably financed by the government on a levy from the financial institutions - but with no financial institution having any power to make decisions on how it is run.

 

Is there not some sort of campaign 'up & running' for this to happen??

 

The FOS is already funded by an annual levy from the Financial Institutions in addition to a fee per case.

 

The FOS receives exactly the same amount of money, if a complaint is upheld or rejected.

[MARTIN3030]

The FSA became involved in some cases following banks taking adverse/hostile actions against some customers reclaiming charges.

There were some given compensation if I remember right,and banks were made to reverse decisions.