DS's bank accounts closed without explanation

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Last October, DS (16) opened a Natwest young people's account so I could pay in his monthly allowance and he could learn to manage his own money. The first month's standing order went in and he withdrew small amounts as needed.

Before the second month's money went in he received a letter from the bank saying they were closing his account - it didn't give a reason. He took the letter to the bank to query it and was told they couldn't tell him why. I didn't see the letter and the bank apparently kept it when he went in.

So, in December he tried again and opened a young people's account with Barclays and the same sodding thing has just happened. The first standing order went in yesterday and he went to use his card. The ATM swallowed it.

He went into the branch and they printed him off a letter there and then which said, 'following a review of your account, the decision has been taken to close your Barclays product listed above, in accordance with our terms and conditions.' and then further down it says 'Please be aware that should we receive any requests for a status report about you and your account, we will reply that we regret that we are unable to express an opinion. Finally, we will not be prepared to offer you any new banking services'

We've just been into the branch together, I asked the clerk why his account had been closed and she said she didn't have access to the information. She let us use the phone to call customer services and they said they were unable to tell us why but that DS's account 'no longer fit their criteria'

Can anybody who works in banking tell us what the hell is going on? The Natwest account was the first account he has ever had in his name. He's never been overdrawn - it's not possible on the under 18's accounts. Has he been a victim of ID fraud? How would we find out? What can we do so this doesn't happen again?

Sorry for all the questions, we're both feeling very and

Good lord how odd.

I have no idea undfortunately, hope someone more knowledgeable comes along.

are you his guarantors?

could there be a problem with your account?

has someone got his details and are using his information for fraud purposes?

has he told you the whole story?

He didn't need a guarantor. The only money going in was the standing order from my current account - a coop account I've had for 20 years without any problems. I've seen all his bank statements and there's nothing untoward - no money from elsewhere has been going in and the only money out has been via local ATM's. The only thing I can think of is ID fraud but I have no idea how I'd find out if this has happened or what to do about it.

How bizzare!

And how frustrating you can't get to the bottom of it!

Do you have an account at either of these banks?

My son opened an account at the same bank as me, so I guess then they "knew" him.

Hope it gets sorted!

IME it's imperative that kids learn to manage their money, why aren't banks facilitating this?!

I would request an appointment with the manager of the bank(s) and not be fobbed off by the person at the counter.

If ID fraud is involved you need to know!

Sound like they have reviewed the accounts and changed their criteria. Maybe they don't want student accounts any more. Either way, they need to give you 30 days written notice and will generally offer an alternative type of account.

Banks don't make a lot of money on smallish accounts. But it is short sighted considering how much money they will make from a loyal customer over a lifetime. It does sound odd though - not necessarily fraud. Ask them about the customer complaint policy and write to them saying that you would like to have an explanation. Cc in the FSA.

Oh look, this is interesting

Ombudsman link
www.financial-ombudsman.org.uk/

The bank will have to tell you what the problem is. If they suspect fraud they will tell you upfront. They will be a bit more evasive if they are just messing about with their products. (used to work for a bank'' so used to know the banking codes fairly well).

I would check his credit report in the first instance, easily done online for a small fee.

It's pretty unusual for banks to close accounts like that, two in a row would set alarm bells of for me.

Unfortunately although someone has said they can give you the reason, I've never found banks to be forthcoming and I suspect you'll never get the answer out of them.

I've worked in banking and unfortunately this is a classic case of 'computer says no'.
The only way to get banks (and the people that work in their 'rule bound' customer services) to go outside of their procedures is to raise a formal complaint, since they seem to be the only teams that are given the authority to 'think' as an individual.
Sometimes even these departments have a first level of 'fob you off', i.e. they class your query as feedback about a service rather than a true complaint, so its essential you get into the 'complaints' system. Complaints are governed by FSA guidelines and reported on and as a rule at this point you may get people being more helpful.

Sorry for disappearing, my internet conked out.

Thanks for your replies.

OK, We've I've done a complaint letter (clearly marked 'customer complaints on both the letter and the envelope - I've also said I'll have no hesitation in escalating the complaint if I don't get a satisfactory response).

I was half-way through ordering a credit report for him when the internet went down. Knowing my luck, it's eaten my £2 and I'll have to start again

I'm a bit worried that these closed accounts are getting recorded somewhere and making whatever the problem is, worse. It's kafka-esque! Grrr

This exact same thing has happened to two of my friends with their teenaged sons; we were talking about it the other day. Both banks (HSBC and Natwest) closed the accounts without notice and refuse to give an explanation to the boys or their parents. First child was told not to bother attempting to open an account at any RBS controlled bank in the future. Both boys still at school doing their A levels but with part time Saturday jobs at national store chains with wages going in, both sets of parents solvent (one extremely so!)
Baffling.

interesting malovitt - did they manage to successfully get accounts anywhere else after that?

One went to the Nationwide and successfully opened an account, not sure about the other one.

Thanks, that's hopeful. I was imagining him doomed to a life of keeping cash in a sock.

Well, that might be more prudent!