UK high street bank puts clients’ funds at risk!

Published: 06 June 2023

A major UK high street bank has, in the past two weeks, placed clients' funds held in a client account at risk by transferring the funds from a euro designated client account to a company's current account with no notice.

The bank in question (which cannot be named at this stage for legal reasons), claims to have given the company in question 60 days' notice that it would be closing its bank accounts. However, to-date, the bank has not been able to provide the company with a copy either in writing or by email of the appropriate notice.

The funds which were being held for the company's customers were transferred from a euro client account into the business's sterling account, causing a loss of significant value.

The UK bank then closed access to the company’s current account, preventing the company from paying salaries and rent. When confronting the bank regarding the chaos and hardship this was causing, the bank responded by suggesting they appeal the bank's decision via its normal customer complaint process which could take up to 60 days for a response. 

Through no fault of their own, this has caused the company to breach the ABYA Code of Practice. 

Featured in newsletter

June 2023



Recent News

Copyright © 2024 Association of Brokers and Yacht Agents Ltd. Registered in England no. 1898652.
Website by TheYachtMarket.