Hello guys

Have got such kind of problem. After not being able to log in to my Barclays internet banking and giving them a call regarding this, I've been informed that the reason being is my account is getting closed. The staff I was talking to didn't explain me anything and just said that I don't meet bank's criteria, that’s why I can’t access my internet banking. She said the letter was sent to me about that, but I’ve not received this letter even by today. That was absolutely unexpected.

Straight after getting these ‘news’ I went to the branch where they printed me a copy of the sent letter. The letter was written quite sharply and without any explanations why my current and TAX Haven ISA accounts are going to be closed in 7 days (!). In the branch I was advised to take all the money off and transfer the funds to the other bank. I had to withdraw a couple of thousand pounds from Tax Haven ISA and to transfer them to the current account in the other bank. I’m most worried about the ISA account. In terms & conditions is clearly said that the bank can close this type of account with giving 3 months (!) notice, unless the bank is directed to do so by HM Revenue & Customs.

If I didn’t call Barclays on Friday, I wouldn't know about account being closed in a few days by now. Barclays Customer Services registered the whole case as a complaint.

Has anyone of you had this kind of situation and why do you think Barclays is cutting all my banking with them off? I’ve been with Barclays for nearly two years, but it hasn’t been my main account so the amount of money circulating there was not big – could this be the reason? Cash ISA was my only savings account, where I was putting money periodically.

Thanks.

Didn't have any debts at all. I had a barclaycard a long time ago, but later closed it as balance was paid in full. ISA account was opened just at the end of March.

Specially for that I checked my credit report on Experian yesterday, all is fine.

Strange. They said the senior banker will have a look at that, so I'm waiting for any respond.

Hi, Aidas

You say "In terms & conditions is clearly said that the bank can close this type of account with giving 3 months (!) notice, unless the bank is directed to do so by HM Revenue & Customs."

As you haven't been given 3 months notice I assume it is an HMRC instruction. Why not call up HMRC - contact details on website - and ask for information anonymously or by name?

Hi drumster

Yes, I thought about that. On the other hand bank is closing not only ISA but current account as well.

The other question is – can I open a new ISA somewhere else once this one has been closed? I opened it last tax year.

Hi Aidas,

Have you managed to find out why Barclays have closed your account as the same thing has happened to me last Wednesday. First they cancelled my card without any explanation then they have closed my account. I received a letter today dated 21st May stating that my account will be closed within 7 days (tomorrow), no explanation. I do not owe them any money. I have tried speaking to various people in the bank but they will not tell me why it has been closed. If you have any more information please let me know.

Hi,

There was a Tonight with Trevor McDonald report about 1-2 years ago on ITV: It was entitled Oranges, Lemons and plums (or somethjing along those lines).

Basically, the theme of the show was about the banks regarding each of us (their clientelle) as a particular type of fruit...each type of Fruit signified a "type" of customer in their eyes.

(this was during the era before so many of us started following Martins advice on claiming back bank charges) .

Essentially, what they were doing was: IF say they felt you were for example a "Plum" customer - i.e. one who has a small family and say also works in a minimum wage type job and doesnt leave much money in your accounst typically (according to whatever profiling system they use) then they would potentially consider people "unprofitable sorts".

Whereas if you were a say a "Lemon" quality customer in their eyes,e.g. a Successful business lady/gent and had lots of cash flow into their accounts then they would offer you lots of offers and the likes and consider you a worthwile (profitable) client to keep.

***

On the show from what I could recall, the banks including the likes of Abbey, Banks of Scotland etc had all been classifying each of us in such terms and some had even began "ditching" what they felt were unprofitable customers by closing their accounts and the like.

This could be one of the reasons your accounts have been closed with little/no explanation - some financial desk staff on the Barclays team mayve reviewed a whole list of client accounts on tehir list sometiem and decided that cleint X, y and Z were "Plums" and decided to ditch them etc.

But I hope you find the answer as to the causes.

I've got an Barclays account but have maybe on a few pounds in it fo rover 10 years and theyve left it alone and write to me with a statement about once a year, so that would be abit starnge if like as the ladies and gents above have mentioned that you have substantially more than a few pounds in the accounts with them.

*****

ISA's:

One gent above mentioned that they had an ISA with the bank and that they were closing it - you can request an immediate transfer to another ISA provider: Anything from Virgin money, Abbey or other banks (there are many who dont charge to hold them.

Dont give them the rightto just "close" your existing ISa, as I think that may cause you to lose the previous tax year ISas (say 05-06, 07 to 08 etc) worth of Tax free benefits...whereas if you transferred- you would be able to keep them all and continue your subscriptions to your ISa for the current tax years (upto the max for teh cash /Stoscks n shares limit).

Hope it works out in a good way for each of you,

Kind regards,

The kind of segmentation ITV were talking about doesn't normally lead banks to close accounts in the way described.

I can only guess that the actions described arose from a concern at the bank about the bona fides of the customer.