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The bank is closing the account, what can you do if this happens to you!?



Here's what you need to know about your bank's rights and your rights.

The bank may close your current account for the following reasons:

- Violate the law

- Mistreating or lying to employees

- Provide error information

- Causing banks to violate regulations

- Material and persistent breach of contract

- The account has not been used for a long time

- No longer meet the criteria to keep the account open, such as income requirements


Banks are usually required to tell customers why they closed their accounts. However, there are two exceptions where the bank can close the account without giving any reason:

1. The "No Tips" rule in the Proceeds of Crime Act 2002 means that if a customer is suspected of crimes such as money laundering, the bank will freeze or close the account, but will not tell the customer the reason.

2. Guidance from banking trade body UK Finance says banks are not required to explain to customers the reasons for closing an account unless doing so is "appropriate or permitted".If you think your bank has unfairly closed your account, you can complain to the Financial Services Arbitration Commission (FOS). The FOS requires banks to be fair and reasonable and give at least 30 days' notice when closing a current account unless: Bank suspects customer of fraud


Customers threaten or abuse bank employees

Even in these cases, it is helpful for the bank to explain to the customer the reason for closing the account. You can submit a complaint about the FOS online here: https://www.financial-ombudsman.org.uk/consumers/how-to-complain

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