Bank demanding I show up or else they restrict my account

[Soltan]

Don't know if any of you have come across this but I recently got a letter from LloydsTSB with whom I've banked for almost 30 years asking me to turn up to my branch with passport or other such item or else they "will need to restrict the use of your account".

Now the letter actually says at the top "we have a legal duty to ensure that we hold correct information about our customers". To me that says we want to make sure we have your details correct
So I rang my local branch and said congratulations your letter got to me OK, therefore you have my correct details. Guy on the other end was adamant that I still had to come in or else. I asked to speak to the department who wanted my info to find out why but was told they don't speak to customers.

Now either they want to confirm my details (in which case if they tell me what those are I can tell them if they are correct) or they want me to prove my identity. Two different things surely? And if they want to confirm my identity, under what legislation do they have a right to do that in such a threatening manner?

Anyone else come across this? I bank with a couple of high street names and I've never had to do this other than when I take out money occasionally from a non-local branch (you show ID to prove your identity).

OK, rant over but I'd be interested to hear the members thoughts on this.

 

[jimti]

maybe you should write back explaining your fees for bank visits
It could be a good earner :bannana:

 

[Soltan]

maybe you should write back explaining your fees for bank visits
It could be a good earner :bannana:

ROLF!!!! That is such a wicked idea hehehe

 

[Colin_b]

Money laundering regulations. Cumbersome and largely pointless, they don't have a choice, it is required by law.

If its any consolation, the banks dislike it, it costs them a fortune, and pisses off their customers in the process.

 

[jimti]

They could help themselves by being less abrupt and more forthcoming with an explanation why in their comunications, that might not piss the customers off so much

 

[blondebier]

It's only going to get worse too.

Further changes are on the way to the "Consumer Credit Directive" and this has got a fair few of them in a right tizzy!

 

[whizzkid11]

As Colin b suggested, its a money laundering thing - I had a similar request for information from Barclays - though they did not ask for a branch visit, nor did they suggest restriction of facilities.

I ignored it and have had no more requests since.

 

[crockers]

Would love to see what money laundering regulation asks for proof of ID to verify an account the OP has held for 30 years. ML regs ask for proof of ID when opening an account or exchanging money in foreign currency at a bank with which you do not bank. This sounds more of a sales campaign to get people into the branch and then do a full financial review and tout their wares.

If OP has other bank accounts he is happy with he may want to consider moving his monies to one of them.

 

[bh13coupe]

maybe you should write back explaining your fees for bank visits
It could be a good earner :bannana:

£50 per hour

 

[moonloops]

Would love to see what money laundering regulation asks for proof of ID to verify an account the OP has held for 30 years.

Section 7 of the Money Laundering Regulations make it clear that if any institution has insufficient identification data on a customer then they need to do due diligence and ensure they have up to date info.

It is probably exactly why they are doing this as the OP has banked for 30 years and ID he gave back then is no longer good enough or the bank is just being cautious to comply.

 

[Soltan]

£50 per hour

Funny, that's just the figure I had in mind

 

[grober]

Its possible someone else has been trying to use your identity/ account details for ellicit purposes. For the sake of argument lets suppose you're the crook, the bank would be foolish to supply you with the account details over the phone since the "other guy" might be the genuine party. May be inconvenient but possibly in your interest to co-operate in establishing you are indeed the "bona fide" party.

 

[Soltan]

Section 7 of the Money Laundering Regulations make it clear that if any institution has insufficient identification data on a customer then they need to do due diligence and ensure they have up to date info.

It is probably exactly why they are doing this as the OP has banked for 30 years and ID he gave back then is no longer good enough or the bank is just being cautious to comply.

I thought that might be the case, but either either need to verify my details (which is what the letter says they are doing) or prove my identity (which is what they are asking me to do). The letter is not clear at all and if this is a legal requirement you would have thought mentioning the relevant regs would have been helpful.

 

[Soltan]

Its possible someone else has been trying to use your identity/ account details for ellicit purposes. For the sake of argument lets suppose you're the crook, the bank would be foolish to supply you with the account details over the phone since the "other guy" might be the genuine party. May be inconvenient but possibly in your interest to co-operate in establishing you are indeed the "bona fide" party.

There is no indication of fraud, certainly no mention of it in the letter. If there was I'd hope they would take the safe approach and freeze the transaction. I would have no problem with that to be honest.

Either way they should be up front and not use threatening letters. If they want to see me, fine, I'll make an appointment at my leisure. You want to know where I live, well congratulations your letter got there, but don't lie and don't play the heavy.

 

[moonloops]

I thought that might be the case, but either either need to verify my details (which is what the letter says they are doing) or prove my identity (which is what they are asking me to do). The letter is not clear at all and if this is a legal requirement you would have thought mentioning the relevant regs would have been helpful.

Yes you are right they should have just explained everything clearly without such an abrupt letter.



Only conversions I have with my bank these days goes as follows:

Them: Oh hi, we haven't had an account review with you for some time, when can you come in for a chat?
Me: I don't want to buy anything from you so it will be a waste of both of our time.
Them: Oh we don't want to sell you anything.
Me: You did in the last 5 reviews I wasted my time in - when you have a competitive product on the market I'll consider it.
Them: Oh OK

 

[Will]

I have a feeling you need to bring in such ID when there are fairly large sums floating about, something like £11,000+ rings a bell? I had to bring in ID to my branch (Passport IIRC) a few years ago when transferring some funds to my solicitor.

Unfortunately it's the law, but it's there for a reason - it's not the banks being awkward for the sake of it.

Will

 

[Colin_b]

Would love to see what money laundering regulation asks for proof of ID to verify an account the OP has held for 30 years. ML regs ask for proof of ID when opening an account or exchanging money in foreign currency at a bank with which you do not bank. This sounds more of a sales campaign to get people into the branch and then do a full financial review and tout their wares.

If OP has other bank accounts he is happy with he may want to consider moving his monies to one of them.

I did suggest the regs are cumbersome and ineffective. And hold you branch staff personally responsible for lapses.

Of course it will make the bank look at ways of covering the costs, anyone would. Move accounts, and the same hoops have to be jumped through.

Blame the government, they make the rules. And they are laughably ineffective in stopping laundering, and very inconvenient for banks and customers.

Looks good politically, so we get buggered around.

 

[lil.smartie]

Could be worse, you could bank with HSBC. They have been paying cheques signed by me for the last year and it's just come to light that they haven't actually set me up as a signatory on the account! They realised when I signed the form to add someone else as a signatory and only then as the branch gave us the wrong form and our (new) account manager had to sort things and she noticed!!

Lloyds have been great, I've banked with them for 16 yrs now and never had a problem, we've just opened a business account and Paul's just moved his HSBC account to them too as they have been so good in comparison to HSBC!

Kate

 

[mykulmerc]

Just another sign of us allowing the regulators to think that we exist for their benefit. Surely its time for us to just say no to this kind of carry on and force the banks in this case, teachers, doctors, nurses and many others in other cases, to stand up to over zealous regulators.

I work in aviation where we are rapidly being regulated out of business. I am seriously considering retiring in 2012 when the next wave of work prevention regulation hit us. (Any job offers gratefully received!)

I cannot believe how many people just swallow this excess of regulation regardless of how difficult it makes our jobs and lives.

About 3 years ago I moved twice within 6 months and Barclays with whom I have banked for 20 years each time wanted proof of signature, even though they had been honouring cheques. The form was not available on line, and head office were unhelpful. The first time I went into local branch and made a fuss at which point the manager said he would sort it. Second time he was less helpful, so I just left my new address on the counter saying they could send to whichever address they wanted, but if they wanted me to get it, the new one would be better. That was the end of the problem.

 

[Satch]

Also possible they are trying to determine if you have a US passport.

The US Cost Basis reporting rules kick in soon and this essentially forces non US institutions to grass up US citizens to the IRS. Expensive and risk prone for the bank.

Oh if if you do, they might just tell you to bugger off and find another bank.