NatWest has been forced to give customers up to £500 in compensation over the manner in which the bank closed people's accounts.
The Financial Ombudsman Service (FOS) ordered the bank to compensate customers after it received complaints about poor customer service - Mirror Online reports.
The FOS said NatWest was within its rights to close the accounts but ruled some people were unfairly treated during the process.
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One customer said they were caused "severe distress", being forced to turn to food banks, and borrowing money from family and friends because they couldn’t access their cash.
They couldn't access money for three months - which also meant they lost out on a house they were in the process of buying.
The FOS ordered NatWest to pay out £250 because the delays were "unnecessary."
Another customer said the bank placed a black mark against her credit file and closed her account after it suspected a £5,000 cheque she deposited was fraudulent or counterfeit.
She told the FOS this meant she couldn’t open a savings account or re-mortgage her buy-to-let properties. The customer received £500 in compensation from NatWest after the FOS ruled the bank didn't have "sufficient evidence" to place this black mark on her credit file.
A NatWest spokesperson said: "We have clear legal and regulatory responsibilities to protect our customers and accounts from fraud and the proceeds of crime.
"We take these responsibilities very seriously and will act if we detect any activity that falls outside those controls.
"A decision to close a customer’s account is only reached after very careful consideration."
Can a bank close your account?
Banks are allowed to close accounts if they suspect fraud or money laundering on an account.
While the bank can’t be forced to tell you why it’s closed your account, you can complain about it if you think it’s made a mistake.
In the first instance, you should complain straight to your bank.
If you don't get a response within eight weeks or you're not happy with the response, you can take your complaint to the free Financial Ombudsman Service.
In its guidelines to banks online, the FOS says: "Businesses that provide bank accounts are generally entitled to close them – just as their customers are. But you should treat your customers fairly.
"You shouldn’t close an account because of unfair bias or unlawful discrimination. And you shouldn’t usually close an account without giving reasonable notice."
It says customers may complain if the bank:
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