How can Barclays freeze £56,000?
I desperately need your help after Barclays bank closed my current account of 10 years, freezing the £56,000 held in it without explanation. This account has been credited with my wages each month for the past seven years. The bank demanded to see evidence of where the money came from and, fortunately, I kept all my wage slips. But I have now been told that I will not be able to access the money until 1 October.
I am trying to buy a house so this is hugely problematic. How can a bank just close someone’s account like this?
Name and address supplied
Initially, we thought this was another case of a bank de-risking and closing the accounts of those with links to Iran and other similar countries. However, further investigation revealed that your past is not quite as you initially indicated.
Back in 2017 you were disqualified from being a company director for four years for failing to provide proper accounts. It also later emerged that this business had, an admittedly now closed, account with another bank – despite your claim you only had one account. Barclays’ action is almost certainly due to concerns about your financial past. It is unclear how you were able to save £56,000 over seven years, doing the type of jobs you have claimed you did (such as working in a call centre) – hence the request for proof of earnings.
Barclays says it has the right to close any account, and these decisions “are not taken lightly and considered on a case by case basis”. It declined to comment on the details, but said all banks undertake these kind of account closures when appropriate.
The reason banks can be so tight-lipped is due to money-laundering regulations, which prevent them from “tipping off” customers who they fear are engaged in illegal activities. I am afraid in this instance we are unable to help you. Your money will remain frozen until October when it will be returned – provided no claims are made on it by any other interested parties.
A smart meter runs up £1,148 bill
I was a customer of Economy Energy when it collapsed last December. I’d made monthly payments by direct debit and assumed all was up to date. However, we have just received a demand of £1,148 from its administrators Grant Thornton with the threat of a debt collection agency if not paid within 10 days. This is an error, caused by a smart meter fitted last autumn. The bill showed a massive sudden increase in gas usage and must have been due a recording error. I was trying to resolve it with Economy when it went bust.
JS, Hull
Grant Thornton has been chasing all money owed, as it is bound to do. It has now put the matter on hold. Your previous supplier, British Gas, was supposed to send copies of its bills to show your annual usage, but these didn’t arrive and have had to be resent. From these, it will be clear to Grant Thornton there was a mistake, and the bill will have to be written off. If it went to court they would have to prove you owe the money – which they almost certainly can’t, given the mess Economy’s billing appears to have been in.
Always take your own readings – ideally with a photograph – if you have a change of meter so mistakes can be far easier rectified.
