Frozen Uk Bank Account

[Frozen]

SUBJECT: FROZEN UK BANK ACCOUNT

 

A UK Bank Current Account has been frozen by one of the "Big Five" UK National Banks.

 

Where can I go to get information regarding rectifying such an incident and/or compelling the bank to justify their actions / release the money?

 

Issues applicable to this case:

1) UK National Bank.

2) Bank Freezes customers UK current account.

3) Bank refuses to explain the reason why account is suspended.

4) Bank Manager Sends letter stating – "unable to enter into further discussion on the matter".

 

The questions I am trying to find answers to are as follows:

1) What legal requirements does the Bank have to comply with under UK Law in such circumstances?

2) Especially regarding:

a) Notification of suspension actions carried out, being reported to the customer?

b) Justification of the banks actions to a UK regulatory body/ UK Government / Police / Court of Law?

c) How long can the current account be under Suspension without justification being carried out under UK Law?

d) Does an injunction have to be issued in the courts prior to the Bank taking such an action?

3) What are the Legal Rights for the Customer under current UK / European Laws regarding such draconian actions, by a UK Bank?

4) Is this considered to be an infringement of ones European Human Rights/ Civil Liberties if "NO Justification Whatsoever" is provided by the bank to the customer for any suspension?

5) How does the customer know that they are not being discriminated against, regarding Race / Religion / Sexual Orientation / etc, if no justification is provided by the bank?

6) If the Bank customer is suspected of being a Terrorist / Money Launderer / Drug Dealer etc., by the Bank; who is supposed to inform the customer, or does the Bank have unlimited "Draconian Powers" in such circumstances, and exemption from prosecution etc, if the Bank uses any such reasons to justify their unwarranted actions?

7) What UK / European Legal remedy's are available to the customer in such circumstances, to free up the customers money?

8) What recompense is available to the customer in such circumstances?

 

Other Organisations previously contacted without any success:

1. British Bankers Association 020 7216 8800.

2. Financial Services Authority 08456 061 234.

3. Financial Ombudsman 08450 801 800.

4. CAB - Citizens Advice Bureau.

5. Office of Fair Trading 08454 040 506.

 

Does anyone have any recommendations regarding the above?

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[Guest NATTIE]

Yes, there are a few reasons why a bank account is frozen, for example, a law court specifically ordering it to do so. The other example is when someone has died which is not your case, and the third one could be marital dispute, and a fourth one could be that the bank of England has asked for it to be frozen. Need more details to determine which is the case.

[Frozen]

Yes, there are a few reasons why a bank account is frozen, for example, a law court specifically ordering it to do so. The other example is when someone has died which is not your case, and the third one could be marital dispute, and a fourth one could be that the bank of England has asked for it to be frozen. Need more details to determine which is the case.

 

Most Likely the Bank suspects Money Laundering, as were previously asking questions regarding “International Transactions” which was how a UK to UK CHAPS Transfer ended up recorded on the relevant online current account statement.

What recourse does one have if the Bank refuses to discuss the matter?

Who does one contact in the UK to try to find out if indeed a Legal investigation is taking place?

[Guest NATTIE]

I am confused do you mean you were asking how an international transaction was recorded when it was sent for example through HSBC to say Lloyds? If this is a business account what have they said about the reasons for freezing the account?

[Frozen]

It's a private UK current account........ a UK chaps transfer took place between two UK BANKS.... on the current account statement the transaction is shown as an INTERNATIONAL TRANSACTION.... this is incorrect and in error...... i therefore suspect they are trying to investigate an International Money laundering [problem] or whatever they think the INTERNATIONAL TRANSACTION entails..!!

Where do i go for help when the Bank refuses to talk to me about the Frozen account..??

[Guest NATTIE]

ok, i am stuck on this one because it is a bit odd for a standard bank to bank transfer by CHAPS to show International transaction.

[Frozen]

Any ideas to help find a resolution would be most welcome.

How long can the Bank suspend the account without providing justification to the owner of the account?

[Guest NATTIE]

Do you know more details of the transaction that seemed to start the whole rigmorale off, because i need more info.

[Frozen]

Problem supposedly arises when bank clerk, asks the following questions, on trying to withdraw money from the account:

1. What is the money going to be spent on, that you wish to withdraw from the account?

2. What was the money spent on, that has previously been drawn from the account?

3. Where are the receipts to substantiate the last purchases on this account?

On informing the bank clerk, that I do not consider it’s to banks role in life to monitor exactly where/why/how and what customers do with their own money, I have ended up with a suspended account.

Alternatively the problem may also relate to a CHAPS UK bank to UK bank transfer, showing up as a Foreign Transaction “In Error” on the bank statement.

Realising that it is not the individual bank clerk, asking the questions. I asked for the name and phone number of the person &/or department “Actually asking these questions” every time I try to make a withdrawal?

To try and stop this routine happening every time I try to withdraw money from the account.

For my troubles I get a suspended account, with a faceless bank employee refusing to talk about the issue, and presumably hiding behind the SOCA - SAR submission legislation.

I therefore have to presume, that the bank to cover themselves, and to ensure their immunity from prosecution from either the Customer &/or HM Government, have submitted an SAR report to SOCA (Serious Organised Crime Agency) the UK’s “FBI” relating to “suspicion” of money laundering (or some other heinous crime) etc..!!

Whereby UK banks and their employees can legitimately hide behind legislation for up to 38 days without any retribution being available to the customer in the UK Courts during this period.

Supposedly after 38 days the relevant authority requesting the suspension has to go to court to apply for a Restraint Order to continue the account suspension, (Though I am not sure exactly where this is stated in UK Law) when all the banks cards will supposedly have to be placed on the table.

Eg., http://www.soca.gov.uk/downloads/KvNatWest.pdf

George Orwell was right in Animal Farm…!! (That just about sums up this situation perfectly)..!!

My query relates to exactly what does the Bank have to respond to after the 38 days have elapsed? I.e. can they still claim total silence etc. or do they have to confirm to the Customer the presence of a Restraint Order and the details of same etc., or release the current account from suspension?

[Guest NATTIE]

The bank have the right to ask questions on unusual transactions from the account period. If they suspect money laundering they can get chucked in jail lose their job etc,etc, What info have you gleaned from the bank as to the suspension of the account? have you complained the the Financial Ombudsman Service? I still have no idea even from the case you have linked as to why YOUR account is frozen.

[Frozen]

The UK Bank in question still “TOTALLY REFUSES” to talk about the Frozen Current Account.

The Financial Ombudsman Service complaints service is ONLY interested in cases where the Bank has acted UNLAWFULLY, which they say does not apply in this case.

As far as the Financial Ombudsman Service are concerned, they would write to the bank, but if the bank declines to talk to the Ombudsman about the account, then “C’est la vie”, there is nothing they can do about it..!!

Currently UK Law gives full immunity from prosecution in a Court of Law to any Financial Institution that can say that they have a “SUSPICION” regarding anything at all concerning any account etc, and then passing a SAR report to SOCA to start an investigation, resulting in a frozen account..!!

In other words any such Bank customer is “GUILTY UNTIL PROVED INNOCENT” in such a case, with time limit undeterminable by persons unknown, just like a well run “POLICE STATE”, should be..!!

Who said we don’t need a “Constitution” in this country to define ones rights, when ones Freedoms have been eroded to the point where Money can be impounded by the Banks without any time limits whatsoever being laid down in Law that require them &/or HM Government institutions to account for their actions.

Should the Police actually seize your “Cash” for any reason, they have to justify their actions in a Court of Law within 48 hours..!! Sadly no such protection is afforded to owners of UK Bank accounts under current UK Law.

The web link to the court case, is the only reference I have found to date regarding actionable time scales in relation to frozen bank accounts, such as in this case.

[Guest express]

Have you consulted a solicitor?

[Frozen]

Talking to a Solicitor is the Next option, with the following proviso:

 

Solicitors/ Lawyers who are fully trained and approved by the Law Society, who fully understand the current regulations and could deal with such Banking issues, current cry off from taking on new clients as soon as one of the major high street banks is mentioned as an adversary.

They do not want to upset the hand that feeds them, as most practices are heavily involved with the major banks in lucrative debt recovery operations these days.

 

But I have found one who has kindly offered to write to the Bank on my behalf, as long as I deposit £500 + VAT up front with them…!!

 

When asked why the bank should reply to them, when they Point blank refused to talk to the client, the Solicitor in Question did not have a sensible reply.

 

So finding one, who fully understands the issues, and is not afraid of the opposition, is not an easy task.

 

I have withheld the Names of the participants above …to protect the “Innocent”…!!

[Springboard]

A contact of mine had his business account frozen for over 5 weeks. Payments into the account from debtors during this period were rejected. The bank acted due to the mis-interpretation of a letter. The writer of said letter held a charge over the assets of the company and confirmed that the bank had not acted correctly, then wrote to the bank, the account re-accessed. However the damage had been done - all sales staff walked out and production stood still for 5 weeks, the business having to cease trading as a consequence. My contact is seeking a law firm who will take this case on as the FSA are unable to help quickly enough if at all. How would one be able to find a law firm with this level of expertise, perhaps on a no win no fee basis. Can anyone advise?

[caro]

I'm afraid that as a self help group, and to maintain our impartiality, we don't make recommendations.

[Springboard]

Thank you for your reply , I of course understand but would anyone know of a reliable and trustworthy resource where he could search for this type of expertise?

Edited September 14, 2013 by Springboard
misspelling

[honeybee13]

Thank you for your reply , I of course understand but would anyone know of a reliable and trustworthy resource where he could search for this type of expertise?

 

Hello there.

 

The Law Society website has a 'find a solicitor' function where you can type in your location and the speciality you're looking for.

 

My best, HB

[KOLJA RODICI]

this account freezing business is very specific for UK banking sector..it looks like UK bank are using that provision 10x more than any other banks in other EU countries combined..around 400 000 accounts gets frozen by UK banks ...no other country does that in such numbers .I had very bad experience with LLOYDS Bank..my advice LLOYDS/BARCLAYS/are the worst ..if you have bank accounts with them my advice is to close them ASAP and move your money elswhere

[martin2006]

this account freezing business is very specific for UK banking sector..it looks like UK bank are using that provision 10x more than any other banks in other EU countries combined..around 400 000 accounts gets frozen by UK banks ...no other country does that in such numbers .I had very bad experience with LLOYDS Bank..my advice LLOYDS/BARCLAYS/are the worst ..if you have bank accounts with them my advice is to close them ASAP and move your money elswhere

 

Not much point posting here as the thread is over 8 years old and no comments for almost 3 years

[KOLJA RODICI]

Not much point posting here as the thread is over 8 years old and no comments for almost 3 years

it shows up on google search and undermines lloyds bank rating..