Bank Insisting I tell them why I am making a Payment to my Daughter

[Gaggley]

I usually do my banking online but thought it would be easier to set up a standing order by calling First Direct today. After going through security, I was asked a number of questions about whether I had been forced to do this, had I been told to download software, was anyone watching me online etc. This is irritating, as it is incredibly unlikely that anyone who was being scammed would say yes, but I answered them none the less.

I was then asked how I had been given the bank details. I said that I had made the transfer before, but still had to give specific details as to how my daughter had given me the bank details, that I had successfully made manual transfers to multiple times over many years. After we'd got past this, I was then told I had to tell them why I was paying money to my daughter. I declined to answer, and was prevented from setting up a standing order. Complaints department confirmed that this was their procedure and they were knowingly preventing me from moving my own money around.

I asked them how much fraud they could quantify had been prevented by these arbitratry measures, they could not answer. But if I had done this myself online, then I would not have to justify my own decisions, could just do it at the drop of a hat. Bloody annoying. But a real problem for people who can't manage to use online services, who are forced to give up their privacy by rules like this.

Does anyone have a bank that will allow you to make transactions over the phone without justifying how they spend their own money, as I would like to switch to them?

@parisfury , a dear sister, and she is, or I wouldn’t have bothered.

I work in a banks regulatory department. All banks have to now ask for this information as per news rules set out by uk law and financial regulations. They are not being nosy and trust me staff loathe asking too but we are all forced to do this for new payments.

It's not just about being scammed its also about financial abuse and checking that you are not being coerced into making payments which I'm sure you can understand.

Chaps payments where always a thing for house purchase etc
mare the still a thing

That was precisely my point.

If you want a less hassle more common sense bank I would suggest Nationwide.

It’s more about money laundering laws @Gaggley .

you can give away as much of your money to who you like as often as you like.

You can, but should you die within 7 years, amounts above £3000 will incur an inheritance tax liability.

I am completely with you it is none of their business. If they have confirmed your identity then you should be able to transfer money to whoever you bloody like. So annoying.

Genuinely - would you subsequently complain if you were allowed, no questions asked, to transfer your life savings to a scammer?

Outrageous interference from FD. This goes way beyond fraud checks. They should mind their own business and not invade your privacy. Suggest move your account.

I am online savvy but don't do online banking for reasons which I thought would be obvious so if I want to make a transaction or set up a standing order on the phone, I expect to be able to do so without the 3rd degree that's kind of the point why should I have to do it online many people don't want to... Whilst the real fraudsters slip through the net

It's sad but truth that many older people have suffered financial abuse at the hands of their nearest and dearest.(not saying you are elderly,your post doesn't indicate that,but banks have been warned to be on the alert and may err on the side of caution )

I’m having a wry smile here reading the number of comments suggesting that banks have the customer’s interest at heart in anything they do.
Anyone want to buy my nice bridge?
Joking apart, there’s a very good reason why online banking is preferable nowadays. I’ve set up two standing orders recently, one to a family member one to a friend. In both cases entering my password was all I needed to do for confirmation.

Unless it’s a regular gift - that doesn’t count. Ie monthly expenses.

How do they define this though ? For example some GPs help with nursery fees. Could this be seen as taking advantage?

A close family member defrauded my mother - I never ever would have said it would happen but it did and now my mothers life savings are gone and her small inheritance from my grandparents won’t even replace what’s gone let alone allow her, a widow, to have the retirement she deserves. It’s amazing how devious people can be and I guess this is how the banks cover themselves in these situations

Oh that’s absolutely awful - I’m so sorry for your mum @Lemonademoney

She isn’t brainless, she knows it is her daughter. It’s none of the banks business why she is giving her daughter money. They would happily let her set it up if they know what the payment is for, but what difference would that make to whether not was a scam or not.
so many brainwashed people on here

I’d guess the reasoning is pretty simple.

Elderly people tend to bank over the phone/in branch = more security as these are the people more at risk of fraud.

Most people using online banking and apps are probably more clued up on it.

It’s for money laundering. I had to show them my solicitor letter when I inherited

Last week I transferred £50,000 online from my natwest account in the UK to my natwest account in Jersey, with the intention off then setting up a fixed deposit with them. I received a call from a man on the fraud team, was put on hold several times whilst the information I gave was checked, at one stage he sounded quite suspicious and I thought he was going to refuse. And this was the same bank and the same account holder!

Unless that was her husbands name