can bank close my account

bernieobr

I received a letter today from my bank saying that they were closing my personal account (joint account with spouse). They gave no reason on the letter, just said they no longer wanted to do business with us. The account is in credit and any loans on it have been restructured due to loss of income and all new arrangements have been kept by us. The only other thing is spouse has a business account with loan (business was a partnership that closed up and loan is outstanding). Can the bank close the personal account based on what is happening with the business account. Our mortgage is with this bank by the way so does that mean that when the account is closed we have to pay up the full balance of the mortgage too. Any advice please, am sick with worry

iMax

It's their perogotive who they do business with (as is yours also), however rule number 1 as far as I'm concerned; NEVER have your business accounts & personal accounts with the same bank.. I don't think they can claim your mortgage to be paid "just like that" either

bernieobr

Thanks iMax, perhaps you can answer another question for me. Can we get free advice or aid from a solicitor regarding our debts, we are both on social welfare or is free legal aid only for criminal activities

iMax

Honestly don't know, but a phone call to them would give you your answer. As far as I know free legal aid is just that, open to everyone who qualifies (& those who shouldn't).

Dabouche

Perhaps MAB's or the Citizens Advice Bureau might be your first port of call??

amber2

If you have a substantial amount owing on your mortgage they cannot ask you to clear this in one lump sum. Are they asking you to switch your mortgage to your new financial institution also are you on a fixed rate, tracker or variable mortgage. Anyhow you do not have to do this no matter what mortgage product you are on. But yes they are within their rights to ask you to close your account although you are entitled to a reason.

Probably best as you have been previously advised to seek some advice.

1966

If I were you I would call in person to see whoever sent the letter to you and ask them to explain. If you can't meet him/her in person ask for to talk to them on the phone - if not available ask them to return your call.

They probably won't be expecting you to do this but let them see that you are worried etc and surprised by this course of action.

Jot down all your queries No. 1 being "why is this happening" and have them explain.

Main point here is to make contact - let them hear from you and have them put your mind at ease!!

Banks and their officials are dealing with people just like you daily and you are entitled to be treated with respect and dignity & don't forget that.

Good Luck !