Business Bank Account Frozen
Discussion
I'm posting here as I'm getting a bit desperate and don't know where to turn.
I have my business account with NatWest, last Wednesday morning I tried to pay a regular supplier who informed me that my card had been declined, knowing there was money in my account I tried to log on to my online banking and to my horror it was blocked and I couldn't see any information relating to the account, just a "cannot access at the moment" message.
I thought it was a fraud issue so contacted my bank, they informed me that I hadn't brought in further identification to "secure my account" as they requested in 3 letters. I explained that I never communicate with them via letter and I am also in the middle of moving into a new house/office so I hadn't seen these requests. The business team then told me there was nothing they could do unless I brought in ID, they inform me they would try their best to unfreeze the account within 24hrs allowing me to pay my employees on the 31st. I take in the ID straight away, approx 1pm Wednesday. The following day I am 150 miles away from home on a course.
24 Hours pass and the account is still frozen, I now cannot pay my employees via bank transfer and I am unable to pay for the hotel and various other bits and pieces on my business trip. Another phone call into the Business Team and they state they have received all the information but they are waiting for their system to update.
Friday 1st August and the account is still blocked. Wages are now overdue out of the account, various direct debits/standing orders are due to leave and I have a job on hold as the card details held by a supplier relates to the frozen account. Another (now angry) phonecall to the Business Team and it becomes obvious they are not confident of clearing this block. I demand to know how I am suppose to pay my guys and keep "wheels in motion" if the account is frozen, they respond by stating "you may have to pop into branch to get cash". I am still away at this point and meanwhile my employees are unpaid and having to pay for supplies out of their own pocket (£1200) to keep one project going in my absence. The head of the regional business team is now involved and informs me that they are simply "waiting for the flag to be raised off the account" and she will contact me with an update by the end of the day.
4pm Friday I decide to travel back early from my business trip to sort this mess, the NatWest Business Manager rings me and tells me its looking unlikely that the flag is going to be raised by close of business. I inform her I was furious that my account had been blocked for 48 hours which had removed my ability to pay my staff, she then states that I can withdraw cash (for wages) if I can get into my local branch, I inform her I am hundreds of miles away from home but agreed to find a nearby branch and withdraw. Half hour in a branch and I have the cash to pay my staff. I then get back into my local town at 6:30pm and call a meeting for my staff to pay out the cash wages (baring in mind my staff may also have bills to pay etc and the money won't be in their account until the Saturday morning at the earliest). I haven't paid myself and have been paying business expenses out of my own pocket since Wednesday, never the less my staff were paid so I was reasonably happy.
Its now 8:30am Monday and the account is still on hold, I am not really sure what I can do
My account is blocked, my staff are probably thinking I have money issues, my suppliers probably think I have money issues and this whole ordeal has had a pretty disastrous effect on the day to day running of my company. If I ring the business team they simply tell me "everything is in place, we are waiting for the automated system to lift the flag".
Despite not responding to their letters, I cannot believe they took such drastic action (blocking the account) instead of ringing or emailing me. I also can't believe they thought that blocking the account on the end of the month was a sensible idea and I can't understand how they can block a small business account for 5 days without having disastrous effects. Surely if I produced the ID the block should of been lifted instantly.
Any advice would be welcomed, I'm feeling pretty down about the whole ordeal.
I have my business account with NatWest, last Wednesday morning I tried to pay a regular supplier who informed me that my card had been declined, knowing there was money in my account I tried to log on to my online banking and to my horror it was blocked and I couldn't see any information relating to the account, just a "cannot access at the moment" message.
I thought it was a fraud issue so contacted my bank, they informed me that I hadn't brought in further identification to "secure my account" as they requested in 3 letters. I explained that I never communicate with them via letter and I am also in the middle of moving into a new house/office so I hadn't seen these requests. The business team then told me there was nothing they could do unless I brought in ID, they inform me they would try their best to unfreeze the account within 24hrs allowing me to pay my employees on the 31st. I take in the ID straight away, approx 1pm Wednesday. The following day I am 150 miles away from home on a course.
24 Hours pass and the account is still frozen, I now cannot pay my employees via bank transfer and I am unable to pay for the hotel and various other bits and pieces on my business trip. Another phone call into the Business Team and they state they have received all the information but they are waiting for their system to update.
Friday 1st August and the account is still blocked. Wages are now overdue out of the account, various direct debits/standing orders are due to leave and I have a job on hold as the card details held by a supplier relates to the frozen account. Another (now angry) phonecall to the Business Team and it becomes obvious they are not confident of clearing this block. I demand to know how I am suppose to pay my guys and keep "wheels in motion" if the account is frozen, they respond by stating "you may have to pop into branch to get cash". I am still away at this point and meanwhile my employees are unpaid and having to pay for supplies out of their own pocket (£1200) to keep one project going in my absence. The head of the regional business team is now involved and informs me that they are simply "waiting for the flag to be raised off the account" and she will contact me with an update by the end of the day.
4pm Friday I decide to travel back early from my business trip to sort this mess, the NatWest Business Manager rings me and tells me its looking unlikely that the flag is going to be raised by close of business. I inform her I was furious that my account had been blocked for 48 hours which had removed my ability to pay my staff, she then states that I can withdraw cash (for wages) if I can get into my local branch, I inform her I am hundreds of miles away from home but agreed to find a nearby branch and withdraw. Half hour in a branch and I have the cash to pay my staff. I then get back into my local town at 6:30pm and call a meeting for my staff to pay out the cash wages (baring in mind my staff may also have bills to pay etc and the money won't be in their account until the Saturday morning at the earliest). I haven't paid myself and have been paying business expenses out of my own pocket since Wednesday, never the less my staff were paid so I was reasonably happy.
Its now 8:30am Monday and the account is still on hold, I am not really sure what I can do
My account is blocked, my staff are probably thinking I have money issues, my suppliers probably think I have money issues and this whole ordeal has had a pretty disastrous effect on the day to day running of my company. If I ring the business team they simply tell me "everything is in place, we are waiting for the automated system to lift the flag".
Despite not responding to their letters, I cannot believe they took such drastic action (blocking the account) instead of ringing or emailing me. I also can't believe they thought that blocking the account on the end of the month was a sensible idea and I can't understand how they can block a small business account for 5 days without having disastrous effects. Surely if I produced the ID the block should of been lifted instantly.
Any advice would be welcomed, I'm feeling pretty down about the whole ordeal.
You are at their mercy. I had my credit card blocked on Friday due to the fact that they thought a particular transaction I was putting through was "rare and unusual" (it wasn't). However, they were very quick in getting everything up and running again.
If you have a real beef against your bank, there is always the banking ombudsman I suppose.
If you have a real beef against your bank, there is always the banking ombudsman I suppose.
http://uk.linkedin.com/pub/john-fagan/23/572/5b9
I've still got a few days left on my Linked In Premium trial, so I've sent him a link to this thread via InMail.
I've still got a few days left on my Linked In Premium trial, so I've sent him a link to this thread via InMail.
Edited by Mr Overheads on Monday 4th August 09:15
Wing Commander said:
I've got nothing concrete to add, except I wish you all the best getting it sorted.
Could you apply pressure to them via social media like Twitter? I would be trying to go to the top of the tree if it were me. That is some head of UK business or somesuch.
Once again, good luck!
I had written a long FaceBook rant on their Business page, I deleted it at the last minute in fear of looking unprofessional.Could you apply pressure to them via social media like Twitter? I would be trying to go to the top of the tree if it were me. That is some head of UK business or somesuch.
Once again, good luck!
I will be revisiting this route if its not unblocked today
Mr Overheads said:
http://uk.linkedin.com/pub/john-fagan/23/572/5b9
I've still got a few days left on my Linked In Premium trial, so I've sent him a link to this thread via InMail.
Thank You I've still got a few days left on my Linked In Premium trial, so I've sent him a link to this thread via InMail.
williamp said:
It should be taking this long to sort, but banks like to talk via letters, so you should have opened the post and responded. sorry...
There's always one. Hardly the point is it? Surely a business account manager should be contacting you before blocking an account, its pretty much the most crippling thing you could do to a business.Its now 09:30am and the account is still on hold
Letters have formal legal power - so literally, applying the "letter of the law". However, a verbal communication from a responsible individual would at least have been courteous.
In the modern era of banking, we deal with largely faceless, computer controlled entities which are devoid of the human aspect - perhaps even devoid of humanity - in the way they deal with their customers.
In the modern era of banking, we deal with largely faceless, computer controlled entities which are devoid of the human aspect - perhaps even devoid of humanity - in the way they deal with their customers.
Eric Mc said:
Letters have formal legal power - so literally, applying the "letter of the law". However, a verbal communication from a responsible individual would at least have been courteous.
In the modern era of banking, we deal with largely faceless, computer controlled entities which are devoid of the human aspect - perhaps even devoid of humanity - in the way they deal with their customers.
This is exactly how I feel Eric. In the modern era of banking, we deal with largely faceless, computer controlled entities which are devoid of the human aspect - perhaps even devoid of humanity - in the way they deal with their customers.
This whole "Computer says no" situation is now effecting another job which I am undertaking. This is literally crippling my ability to carry out my day to day operations and I am losing money, work, respect and credibility as a result
10:20am and the account is still blocked, I'm struggling to keep my composure....I'll hold off till mid day and then I will be going bat s
t crazy on the phone to the business team.
The gradual "robotisation" of big business is proving disastrous, in my opinion.
We are human beings.
We interact, interelate and do business with human beings.
Placing automated systems in the way between the humans who are TRYING to communicate with each other is inefficient and, in my opinion, unethical and indeed, immoral.
We are human beings.
We interact, interelate and do business with human beings.
Placing automated systems in the way between the humans who are TRYING to communicate with each other is inefficient and, in my opinion, unethical and indeed, immoral.
I had exactly this problem with Cater Allen a couple of months ago. Actually, mine was due to the removal of a director and shareholder at Companies House that I had not told them about. They sent me two letters over the course of about 10 days. Unfortunately this occurred just after I had moved and those letters went to the previous address - a business trip meant I hadn't had chance to collect them in time. Bank account was frozen without any other attempts to contact me via the numerous contact details they hold for me.
Luckily once I found out I was able to fax them the necessary details and the block was removed within 24 hours (actually I think it was within about 3). Good service to put the account right, but what harm would there have been in phoning me to say "we've sent you two letters you need to read or your account will be frozen in 3 days"?
I hope you get your account sorted. I'd be phoning up, asking for a regional manager to tell them you're moving your bank account elsewhere - see how quickly it gets sorted then.
Luckily once I found out I was able to fax them the necessary details and the block was removed within 24 hours (actually I think it was within about 3). Good service to put the account right, but what harm would there have been in phoning me to say "we've sent you two letters you need to read or your account will be frozen in 3 days"?
I hope you get your account sorted. I'd be phoning up, asking for a regional manager to tell them you're moving your bank account elsewhere - see how quickly it gets sorted then.
Natwest took several days to clear money for a car that I was buying, they didn't even bother to tell me about the fraud checks when I called to check how it was going.
In my old job, the company was making an application for finance. Natwest promptly sent over the forms - that had already been filled in by someone else with all of their own personal and company finance info!
Not the point or what your after but in both cases, they did follow up and apologise afterwards with cash and gifts in both cases. If only the same effort went into the service in the beginning!
In my old job, the company was making an application for finance. Natwest promptly sent over the forms - that had already been filled in by someone else with all of their own personal and company finance info!
Not the point or what your after but in both cases, they did follow up and apologise afterwards with cash and gifts in both cases. If only the same effort went into the service in the beginning!
I'm glad I am not alone in experiencing this.
What is frustrating is the fact that they appear to be shrugging their shoulders and sticking to the original explanation, simply "computer says no".
In terms of cash/gifts, I believe I am due compensation for this issue. I would ideally like cash (I'd genuinely say £1k would be about right for the disruption caused) and an open letter from NatWest to my customers/suppliers/staff stating that it is in fact NatWest that have caused me to not pay for goods, pay wages, complete jobs on schedule etc.
I'm guessing they will crush these claims and offer me something which does nothing to make up for the disruption/stress caused to myself and others related to my business. This is all before the embarrassment of not being able to pay what I owe despite having the means to do so.....
I think its fair to say my 4 year relationship with NatWest is coming to an end
What is frustrating is the fact that they appear to be shrugging their shoulders and sticking to the original explanation, simply "computer says no".
In terms of cash/gifts, I believe I am due compensation for this issue. I would ideally like cash (I'd genuinely say £1k would be about right for the disruption caused) and an open letter from NatWest to my customers/suppliers/staff stating that it is in fact NatWest that have caused me to not pay for goods, pay wages, complete jobs on schedule etc.
I'm guessing they will crush these claims and offer me something which does nothing to make up for the disruption/stress caused to myself and others related to my business. This is all before the embarrassment of not being able to pay what I owe despite having the means to do so.....
I think its fair to say my 4 year relationship with NatWest is coming to an end
I doubt you'll get £1k but worth trying! Certainly mention moral obligation/duty to inform relevant industry bodies as well as the Financial Ombudsman.
Perhaps more importantly than gifts etc., its an opportunity to ensure that you receive some sort of banking facility that may have otherwise been out of reach.
Perhaps more importantly than gifts etc., its an opportunity to ensure that you receive some sort of banking facility that may have otherwise been out of reach.
C Lee Farquar said:
I wish someone would give me £1k for ignoring my mail.
I'm with Williamp on this one.
Of course you do, every thread needs at least two people to blame the OP.I'm with Williamp on this one.
My issue is not with freezing the account. My issue is the fact they froze it without contacting me by other means, froze it at the end of the month, froze it for 5 days and couldn't tell me when the freeze would be lifted.
I am not after £1k for the sake of it, that's probably what this disruption has cost me, in fact its probably slightly more now. Do I think they should compensate me? definitely. Do I think they will? Do I heck.....
Thankfully guys, the freeze was lifted at 11:30am Monday morning.
An email to the head of the Swansea Business Team (with the CEO CC'd) got the wheels turning very quickly. The head of the business team rang me within 15 minutes and within 3 hours I had the NatWest complaints department on the phone who explained that she was after further information before taking it any further.
The lady on the phone insisted there was a major balls up somewhere and the freeze should of been lifted within 24 hours (not 5 days!). She then asked me how this freeze effected my company financially and seemed to log everything I was saying. I enquired what NatWest could do to make up for this and she agreed to write letters to who ever I wanted stating that NatWest had caused a serious cash flow issue for my company and that the company was in financially sound health.
When pushed on the financial losses caused to my company, the complaint handler stated "From evaluating everything you have told me, it appears you have a very valid reason to be financially re-reimbursed, I shouldn't see a problem with sorting some kind of compensation package for you".
All in all a pretty decent response, I'm pretty sure things would have moved a lot slower and been a lot more frustrating if I didn't forward the email to the CEO. From what I can gather, the complaint handler hadn't even spoken to the Swansea Business Team when she rang me
Nice to have the shackles off, I wouldn't wish a business banking freeze on my worst enemy
ETA: Full Response to my claims expected by the 15th August.
An email to the head of the Swansea Business Team (with the CEO CC'd) got the wheels turning very quickly. The head of the business team rang me within 15 minutes and within 3 hours I had the NatWest complaints department on the phone who explained that she was after further information before taking it any further.
The lady on the phone insisted there was a major balls up somewhere and the freeze should of been lifted within 24 hours (not 5 days!). She then asked me how this freeze effected my company financially and seemed to log everything I was saying. I enquired what NatWest could do to make up for this and she agreed to write letters to who ever I wanted stating that NatWest had caused a serious cash flow issue for my company and that the company was in financially sound health.
When pushed on the financial losses caused to my company, the complaint handler stated "From evaluating everything you have told me, it appears you have a very valid reason to be financially re-reimbursed, I shouldn't see a problem with sorting some kind of compensation package for you".
All in all a pretty decent response, I'm pretty sure things would have moved a lot slower and been a lot more frustrating if I didn't forward the email to the CEO. From what I can gather, the complaint handler hadn't even spoken to the Swansea Business Team when she rang me
Nice to have the shackles off, I wouldn't wish a business banking freeze on my worst enemy
ETA: Full Response to my claims expected by the 15th August.
Good to hear its sorted and the complaint is being dealt with. Backs up my experience of them dealing with the complaints well when they get around to it.
Branches do seem hit and miss as well. My local high street one always seem too busy and under pressure whilst Moorgate and Kensington are both fairly pleasant.
Branches do seem hit and miss as well. My local high street one always seem too busy and under pressure whilst Moorgate and Kensington are both fairly pleasant.
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