Natwest letter received "ceasing banking relationship" - what on earth is going on?

[SWnewstart]

I've banked with Natwest for approx 45 years, same current account and more recently a little saver account with less than £30 in it. Came back from holiday 2 days ago to a pile of post amongst which was my salary slip from part-time job, a new bank debit card to replace the current one expiring at the end of June and a letter from Natwest starting off "were you aware that we couldn't make some of your payments because there were not enough available funds in your account" - NOT TRUE.

I immediately went online and checked - there was approx £800 and I don't have any regular payments more than £40 a month (retired and mortgage free). The strange bit is that under the heading of What Items Have Not Been Paid were details of my employer and salary which obviously goes into the account, not out of it! The online statement didn't show my salary at all for May. I contacted the virtual assistant at Natwest who could only advise me to speak to my employer. I did this the next day, only to be told the payment had been returned and had I changed account details or anything? No, nothing changed at all. This morning my employer advised they had again made a BACS payment for my May salary and to let them know if it worked. I checked and the payment was in my account.

However, in the post today was another letter from Natwest stating that "we regret to inform you that following a recent review we have decided to cease our banking relationship with you as from 1 August 2022". I immediately tried calling the Shared Services in Manchester on letterhead but number just rang out. The letter also says this decision is final and they are not able to discuss the decision with me or provide any further information in relation to the decision making.

Are there any Natwest people out there who could shed any light on this (or any other bank staff). What on earth is going on? I'm worried sick.

@Blimeyherewegoagain not Kevin referred to the previous two posts. Hence my reply.
I will admit the one you now refer to I think is another ‘whoops’ moment and perhaps should have read £80k and £70k not £8k and £7k, or £80k and £7k, the former making more sense of the rest of that particular post.
mumsnet really needs an edit function 🤣

No it's not

Yes to the edit button!!

And the further update is ........ As requested, I called the Lloyds Switching Team as soon as lines opened (only on hold for 20 mins this time). The very pleasant lady double-checked all details and confirmed my Classic current account was set up ready to go, nothing showing up n their system - but there was a problem at the Natwest end and unfortunately I would have to contact them.

I then asked would it be possible simply for me to withdraw the money from my account i.e. less than £1000 in total (in 3 separate days' withdrawals from ATMs due to my maximum daily withdrawal limit) and then for ME to close the Natwest account and for ME to physically deposit funds into the new account with Lloyds. She hesitated but said "in theory" there wouldn't be a problem but if there are serious issues with Natwest, they may not release my money and wished me luck!!

Then the postman arrives - in three separate envelopes are a new Lloyds Bank debit card, a new Lloyds Bank cheque book and ...... a letter from Lloyds saying "we are not able to continue with your switch request at this time. Please contact Natwest for the reason we have been unable to proceed". I was on hold to Natwest throughout the day for a total of almost 4 hours. I have now popped into town and withdrawn £250 to be deposited with Lloyds when appropriate.

I guess there’s nothing stopping you from moving over you direct debits manually by contacting the businesses concerned. You’d probably want to do it as a trial first for a non important one first to see if it goes through ok.

Blimeyherewegoagain (very appropriate user name for me I think) - I only have 2 minor DDs, one of which could easily be cancelled as it's just £40 a month to my partner and the other is for mobile phone. I'm very small fish in banking terms!!

You can have as many as you a open, why do you think you can ony have one?

So@SWnewstart you do have a new account but Lloyds just haven’t managed to get NatWest to switch the dd across? and you have managed to retrieve some money?
in which case yay!!!!

Glad it was what I suspected!

I'd just manually move your balance (if you have internet banking for NatWest can do this in one go online) And manually change your Direct Debits as you only have a couple. Then bobs your uncle you are all set!

What you quite literally directly contradict is your point

if you have multiple accounts in the same bank it counts as ONE ie you are entitled to total compensation for all accounts of £85k

Thank you, correct

You have five current accounts

current accounts being the lowest interest rate accounts out there

why?

and you have about 5. Have you lost track?!

My bad I did indeed mean £70k and £80k

if two accounts in same bank, you would be entitled to up to £85k comp

if tep accounts in different banks you would be entitled to up to £170k ie £85k each account max comp limit

@Ohthatsexciting just guessing but maybe @Sexnotgender has 5 current accounts for budgeting.

Very common and I could be wrong but I think Martin Lewis has recommended something along these lines.

So you have one account for 'bills' mortgage, energy, council tax etc.

Another for food

Another for maybe household buys

Another for kids hobbies or clothes

Another for birthdays/celebrations or eating out or whatever.

So you divvy up your money into them like pits and only use each account for that specific thing.

A bit like taking out piles of cash and divvying up into piles and using that throughout the month for your budget.

Quite smart and savvy really.

:) I wish I was as organised.

Exactly @Generix

i had a bunch of TSB ones when they did 5% on £2k. I switched most of them out though for switching bonuses and I do use them for budgeting.

Different accounts for different things. One per home, one per rental property, one for discretionary spends, one for my car hobby and so on.

I'd just withdraw the cash and deposit yourself. Cancel and reset up the DD yourself

Alphabet1spaghett2 - I won't say I'm out of the woods yet, but feel a little better and that will increase each time I withdraw some money towards emptying the account! I'm still so shocked, and angry now, that Natwest could do this in the first place and - most galling - they don't ever have to give a reason! Rant over for tonight :-)

@SWnewstart You are entitled to rant!! The customer service is truly appalling. Fingers crossed to a satisfying end.

@SWnewstart just wondering how you are and if all is ok with your new bank account.

Ah thank you for asking. It's been quite traumatic - current situation is that thankfully I have successfully opened a current account with Lloyds Bank, but Natwest would not do a "switch" between the banks (no explanation given). I have withdrawn my money in the maximum daily allowance and deposited with Lloyds. Down to the last £75 and, for some unknown reason, they won't let me take this all out, saying £50 has to remain to keep the account open!!! Honestly you couldn't make this up. The more I research the whole sorry mess, the more I realise Natwest are closing hundreds of accounts and will not say why.

Part of it is the AML legislation though, so to an extent, the bank's hands will be tied.

I understand why they wrote the legislation the way they did, but I don't think they considered the impact on small fish banking consumers when things go wrong, e.g. when someone gets flagged as a money launderer due to sharing the same name as an actual criminal. If you can't tell the consumer, they can't identify the mistake and appeal.

Down to the last £75 and, for some unknown reason, they won't let me take this all out, saying £50 has to remain to keep the account open!!!

So they don't want you but they don't want anyone else to have you either? They ended your relationship after all!

BudgetTarzan. yes it seems that way. I still really can't believe this has happened. Not that it will have any real impact to the big guys, but two of my friends have closed their Natwest accounts and made other arrangements as a result of my treatment.

I would be tempted to contact some media watchdog, You and Yours, Martin Lewis that sort of thing - if it's happening a lot then they would probably be interested in looking into it.