Builders’ bank accounts have been frozen

[Tarty42]

Hello, wondering whether anyone has any advice on this situation. Have employed a small building company to do some work on my house. I have paid 2 instalments already - no problem with these - and the bulk of the work is now completed. Another instalment was due on Friday but when I tried to pay it, my banking app kept giving me an error message that his bank was declining to accept payment. The contractor has since told me that the bank has frozen his accounts- business and personal- and he has asked that I make a payment into his wife’s account. I’m not completely comfortable with this but the payment is due. Am I about to be sucked into some sort of scam? I know most disputes with builders are for uncompleted work that has been paid for upfront. I seem to have the opposite problem! Thank you

Don't even think about it. Please don't pay him until all work is completed.

Is it a Limited Company? If so, do a search on Companies House to see if there is an issue.

Are you sure that messages, whether from the App or the builder, are genuine?

Plenty of frauds around 'new' bank accounts.

What excuse has the builder given for the accounts being frozen?

Has he explained why his accounts are frozen? Do you believe his explanation? Is this the final payment or is it another instalment for work that has been completed?

If you're happy with the work he has done, and you are paying for work that has been completed, you can pay cash as long as it is fully receipted and there is a document setting out what it covers. I would avoid paying his wife.

Is the payment due for work completed? If so worst case scenario if he has gone bust is he may not finish remaing work but you won't have paid for it.

Both my accounts were frozen for a couple of days when I had fraudulent activity on them, could this be it?

Pay him in cash and get a signed receipt.

Another victim of same brand substitution. And really don't think it needed a specific note telling them not to do this

Order Tropicana orange juice. It was for a recipe.

They tried to substitute with Tropicana pineapple juice. Not Tesco own, not fresh, nor long life. Seriously not any of the 6 other cartons of orange juice they did. Just Tropicana picked as the vital part! 🍊🍍

oops wrong thread. Not sure how that happened 🤣

@ohtowinthelottery yes, a limited company and no problems flagged on Companies House

@everythingcrossed Yes, he said that he bought a new vehicle and the bank are asking questions about the transaction. It is the penultimate payment. The last instalment is a lot smaller. Part of my concern is that the last payment might not be enough of an incentive to complete the last bits. If his accounts are frozen, I am not sure how he can pay wages to his guys. I guess tomorrow will tell - will anyone turn up?

If his accounts have been frozen he may well be being investigated for a criminal offence and his assets frozen under the Proceeds of Crime Act. This happened to a client of mine once (I'm a lawyer) and their accounts weee frozen for 2 years while this investigation went on. They were allowed basic living expenses only. In the end no charges were brought.

If you pay him via a third party or in cash, that would be a breach of the court order freezing his accounts (if this is what's happened). Don't do it. If the reason is that the accounts are frozen while they investigate fraudulent activity, they should be unfrozen soon enough.

Accounts can get frozen indefinitely by the bank if they suspect money laundering. It doesn't necessarily mean he's iffy as it can be a false alarm.

I would pay into his wife's account providing

• you have an invoice
• her bank details are sent in writing
• you are CERTAIN it is genuinely the builder you are in contact with, and not a scammer who has spoofed his email address or phone number. I would want to speak to him on the phone if you would recognise his voice at least, or if not get the details from him in person.

Oh just seen the post above from a lawyer, if that is correct I wouldn't pay via his wife's account!!!

I would speak to my bank Mon am

My first instinct would be that something fishy is going on & not to pay into an alternative account.