>
Earlier this year, Barclays took my overdraft without warning. After a morning at a branch, it emerged that it planned to close seven accounts with less than two months’ notice.
I have been banking with Barclays since I was 12 years old and I am now almost 50. I have a current account, Isa, savings accounts for my children and business accounts at the bank.
No one in the branch could explain why this happened and It is Barclays policy that it does not have to give a reason for closing the account if you have two months’ notice.
Account Entry: Our reader had closed her Barclays, savings, and children’s accounts, but the bank’s rules didn’t require her to tell her why
I really don’t know why this happened. My main business account had a lot of credit and my personal account went into overdraft and out again.
The overdraft was £15,000 and I rarely went over a few thousand as a buffer for large payments or for cash flow reasons.
I accepted my fate, handed over the accounts I needed, and left a few to close.
Despite repeated requests by phone, email and branch visits, I have not received a letter stating the balances of all my accounts at closing. My access to the Barclays app and internet banking has decreased.
I was also told that over £4,000 from my accounts was ‘held’ and to release it I had to go to a branch with two forms of ID.
When I did this I was told that the money could only be deposited into another Barclays account.
I think this is a terrible way to treat loyal customers but more importantly this is my money and it seems to be gone. Can you please help. RC, Berkshire
Helen Crane of This is Money replies: This bank account bomb came as a shock.
You told me you first discovered the problem in a taxi to the airport, when you couldn’t withdraw money to pay the driver because your overdraft was suspended – almost missing a flight in the process.
Not having access to your most important bank accounts – including your checking account, savings and accounts for your business – has obviously made your life very difficult.
Your access to the Barclays online banking app has been suspended because you no longer had an active current account and you no longer had access to online banking.
With no paper statements, you struggled to figure out which accounts were closed — let alone why — and had no record of how much money was in them.
Why would this happen? It may surprise some readers that banks can close your account with just 30 days’ notice, according to FCA guidelines, and they don’t have to give you a reason.
We’ve reported on similar cases before – including this reader who had her accounts closed by Barclays in 2017.
This is one of the many things buried in the fine print that we often ignore when opening new accounts.
Some of the reasons banks use to justify closing accounts are activities that can be relatively harmless, such as using overdrafts too often.
Banks sometimes take steps to reduce the number of customers they perceive as “riskier” than others, even if they haven’t done anything wrong. They run computer checks on their customers and things like this can raise a red flag.
At other times, customers may have activities that raise suspicions of fraud, such as too many transfers between accounts, but these too can be completely harmless.
In more serious cases, banks may have found what they believe is actual evidence of fraud or criminal activity, and in these cases the account will be closed without warning.
In your case, you had spent your entire adult life banking with Barclays, and almost all of your finances were connected to it in some way.
Whenever you needed financial services — whether that was taking out a mortgage, running your business, or opening an account to collect money from parents when you were in a school PTA — you had put your trust in Barclays.
No idea: Without access to her bank statements online, RC had no idea how much money was in the closed accounts
I am very sorry that the bank has not shown the same loyalty to you. Even if it couldn’t give you a reason for closing the account, it didn’t have to add salt to the wound by making it so difficult for you to figure out what was going on and withdraw your money.
These problems started in April and the fact that it has taken six months – and my involvement – to reach a solution is unacceptable.
When you first contacted me in July you had managed to withdraw some of the money from your closed accounts but were told £4,000 had been ‘held’ and you had to visit a branch with two IDs to get it transferred to your other checking account at another bank.
But it turned out that Barclays bank staff are not allowed to transfer money from a Barclays account to an account with another provider.
It should have given you a bank check, and Barclays says it has now spoken to the manager of that branch to make sure staff are aware.
This is just one example of the misinformation you have been given throughout this process.
You were also told that your Barclays accounts would provide you with a year’s worth of paper statements to help you sort out the clutter and find out which accounts were closed and how much was in them. These never arrived.
Barclays has not covered itself in glory but I am pleased to report that you now have all the money from your closed accounts as well as an additional offer of £200 compensation added to £200 you received in August along with your closing balance .
Unfortunately, you have described this offer from Barclays as ‘completely inadequate’ given the difficulties you have encountered and the time it has taken to resolve it.
A Barclays spokesperson said: “We believe that the amount offered for the suffering and inconvenience was reasonable and reasonable and will not be increased further.”
It also gave you information on how to access your remaining accounts online, but said you can no longer access the app because you don’t have a Barclays current account.
It’s a shame that as such a loyal customer you can’t count on Barclays to treat you fairly in your hour of need. And we will never know the reason why the accounts were closed.
Hit and miss: this week’s naughty and fun list
Every week I look at the companies that have fallen short when it comes to customer service, and the companies that have done their best.
To miss: Reader Sue applied as she (O)slo progressed to get refunds for some flights she booked with the airline Norwegian.
She had booked flights to San Francisco for the summer of 2020, but they were canceled amid the pandemic. Sue agreed to take vouchers for the £1,200 tickets to support the travel industry, and planned to restart her California travel later.
But Norwegian has now canceled its long-haul routes and only flies within Europe, meaning that won’t be possible.
As the vouchers expired at the end of this year, Sue contacted me to see if I could help her get her money back.
Flight failed: Sue’s trip was canceled due to Covid, but Norwegian won’t replace her vouchers with a cash refund
I contacted Norwegian and explained that while she was initially happy to fly with them again when she finally went to the Golden State, she couldn’t do that now.
While I’ve managed to get a reader result in this situation in the past, I’m concerned that the airline claimed they couldn’t return the money in cash.
Norwegian struggled during the pandemic and as a result, it entered a ‘reconstruction’ process in 2021 to try to save the company.
The plan worked, but led to major operational changes, including the elimination of long-haul routes.
A spokesperson told me that under reconstruction rules, Norwegian is “legally prohibited from paying refund claims before November 18, 2020.”
She also said it was “unfortunately unable to convert” [vouchers or points] in cash.’
“We understand our customers’ frustration and regret that we are unable to assist further,” she added.
Unfortunately there was Norway, I could make them change their mind. However, I suggested that you investigate a claim in Section 75 since you paid for the tickets by credit card.
Donation campaign: Lidl asks customers to donate new toys and games, who then pass them on to children who need support in the area
Touch: We are entering the first Christmas since the cost of living crisis really broke through, and unfortunately it looks set to be difficult for some.
So it’s gratifying to see companies stepping up their support for those who are struggling.
Lidlwhich has prospered during the pandemic and cost of living crisis, has launched a new nationwide toy donation drive in its stores in partnership with charity Neighborly.
Customers can return new and unopened toys and games to give as gifts to children who need support in their environment.
The supermarket said toys were the second most needed item after food from the charities it worked with.
Donations can be anything – from a small stocking stuffer to something bigger. Popular items include toys, games, books, puzzles, and crafts for different ages.
A great way to spread a little Christmas cheer.
Some links in this article may be affiliate links. If you click on it, we can earn a small commission. That helps us fund This Is Money and use it for free. We do not write articles to promote products. We do not allow any commercial relationship to affect our editorial independence.