This is nonsense and ultimate conspiracy theory territory. Ive NC for obvious reasons.
I work for a bank, in an area linked to bank initiated closures. In short, I review hundreds of bank initiated account closures every month, in detail.
I find about one error in every couple of hundred. Mainly genuine human errors, people who pushed a button they shouldn't have. The very, very rare case of a staff member who's been way too overzealous or negligent in their review and didn't have a sound case.
Other than that, theres ALWAYS a good reason.
- Customer dealing with Russia, lots of Russian addresses/references/mentions.
- Payments with names of known or suspected sanctioned individuals as references (usually on a terrorist watch list)
- Customer calls are reviewed and poor Mr customer is found to be shouting and swearing viciously at call centre staff regularly.
- Customers transactions are clearly suspect with payments in that far exceed their recently stated income and refusal to explain. Money laundering concerns.
- Customers on the make or take - regular complaints raised requesting compensation for spurious reasons. Or the arrogant ones with too much spare time who hate banks and take pleasure in wasting time - multiple requests for subject access requests, copies of historic documents, call recordings, demands for clarification on the minutiae of T&C's, all for no obvious reason.
- Misuse of cards. Regular attempts at charge backs, again for spurious reasons.
So many others. These are all legitimate reasons that banks will kick you out for. For many cases, there will be a record of customer contact since closure. They're always hard done by, they claim all sorts of things regularly - that the bank is discriminating due to their colour/race/age/job/beliefs etc.
Nope. It's because the bank thinks they're a dodgy fucker, misusing bank facilities or abusing their staff or resources and they have enough evidence to justify their decision under stringent policies.
No one taking their sad face account closure story to the DM is going to be honest though are they?!
In terms of the bank also taking out your family - yep, they will. If the concern is money based, so ML suspicions or unaccountable transactions then it's likely to not just be you but your spouse, your adult kids and any one else that you regularly exchange money with.