Banks (Can't think of a bad enough name to call them)

Started by illdecide, August 10, 2023, 10:59:55 PM

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illdecide

Hi guys...have a query that hopefully some of you can offer me help.

I have a small business (4 year old) and recently the bank (Santander) contacted me asking for information to back up the cash i was lodging as this was a new thing the Government have been pushing them for (all banks). Information like invoices, till receipts, proof of address and utility bills etc that match what I bank, I provided them with everything they asked for and about a month later they contacted me again asking for the tax returns for further info which I reluctantly provided but they said a few weeks after i submitted this that because there is a Water mark on the tax return that it was not acceptable. I downloaded a digital copy from HMRC and sent it to them and they said as there was no signature that it was unacceptable, I explained it's digital tax return taken of HMRC and that there is no section in that for a signature. Long story short whilst on Holiday last week the put a block on my account and I am unable to use my Business account, I can't pay the wages tomorrow and can't pay any bills.

Can I go above the banks heads to Regulatory Authorities or Financial Conduct Authority and report them...I have done everything they asked and provided everything i possibly have and have nothing else to give them. I have nothing to hide, I pay tax and VAT and have all the accounts up to date so WTF is their gripe. Any help or useful info would be appreciated.

P.S. I intend to move banks after this but need a short term solution...
I can swim a little but i can't fly an inch

armaghniac

That's shite.
Out of curiosity, have you been paying the taxman from that same account?
If at first you don't succeed, then goto Plan B

illdecide

Quote from: armaghniac on August 10, 2023, 11:22:33 PM
That's shite.
Out of curiosity, have you been paying the taxman from that same account?

Yes, my accountant does all that from the same account. that's the only business account i have.
I can swim a little but i can't fly an inch

armaghniac

Quote from: illdecide on August 10, 2023, 11:24:33 PM
Quote from: armaghniac on August 10, 2023, 11:22:33 PM
That's shite.
Out of curiosity, have you been paying the taxman from that same account?

Yes, my accountant does all that from the same account. that's the only business account i have.

It seems to me, who is not an accountant, that if your payments of PAYE and VAT are proportionate to the payroll and sales, then there is no reason to believe that you were not compliant in the first place and if the tax documentation that you showed matched the payments from the account then there was no reason to disbelieve them, signed or not.
If at first you don't succeed, then goto Plan B

illdecide

Quote from: armaghniac on August 11, 2023, 12:18:02 AM
Quote from: illdecide on August 10, 2023, 11:24:33 PM
Quote from: armaghniac on August 10, 2023, 11:22:33 PM
That's shite.
Out of curiosity, have you been paying the taxman from that same account?

Yes, my accountant does all that from the same account. that's the only business account i have.

It seems to me, who is not an accountant, that if your payments of PAYE and VAT are proportionate to the payroll and sales, then there is no reason to believe that you were not compliant in the first place and if the tax documentation that you showed matched the payments from the account then there was no reason to disbelieve them, signed or not.

I use Quickbooks through my phone so it's all digital and everything i spend or lodge is on Quickbooks which is linked to HMRC and it tells me Tax and VAT due and how much.
I can swim a little but i can't fly an inch

Mike Tyson

Quote from: illdecide on August 10, 2023, 10:59:55 PM
Hi guys...have a query that hopefully some of you can offer me help.

I have a small business (4 year old) and recently the bank (Santander) contacted me asking for information to back up the cash i was lodging as this was a new thing the Government have been pushing them for (all banks). Information like invoices, till receipts, proof of address and utility bills etc that match what I bank, I provided them with everything they asked for and about a month later they contacted me again asking for the tax returns for further info which I reluctantly provided but they said a few weeks after i submitted this that because there is a Water mark on the tax return that it was not acceptable. I downloaded a digital copy from HMRC and sent it to them and they said as there was no signature that it was unacceptable, I explained it's digital tax return taken of HMRC and that there is no section in that for a signature. Long story short whilst on Holiday last week the put a block on my account and I am unable to use my Business account, I can't pay the wages tomorrow and can't pay any bills.

Can I go above the banks heads to Regulatory Authorities or Financial Conduct Authority and report them...I have done everything they asked and provided everything i possibly have and have nothing else to give them. I have nothing to hide, I pay tax and VAT and have all the accounts up to date so WTF is their gripe. Any help or useful info would be appreciated.

P.S. I intend to move banks after this but need a short term solution...

This will be part of their anti money laundering due diligence but certainly isn't something new so don't know why they would tell you that. It looks as if you have been flagged for some suspicious activity or money laundering - usually if a large or unusual transaction occurs but sometimes the algorithm can just flag customers in complete error.

Tax returns can be asked for as part of AML but the fact they didn't accept it due to watermark is ridiculous. The digital copy not being accepted doesn't surprise me, my own bank wouldn't accept their own digital statement for my mortgage. Common sense is usually scarce when it comes to banking processes.

I would call them and ask for a full explanation as to why the account has been frozen, state you have wages to pay and ask them to remove the block. You'll most likely be put through to a junior call center staff member, so ask to speak to someone with more authority if they aren't doing much, and however hard it may be, try and keep the head and be reasonable. I think if they have money laundering suspicions they can freeze your account for up to 38 days.

If they are being unreasonable, mention they aren't complying with the new Consumer Duty regulations which recently came into force, specifically Chapter 9 on Consumer Support. In this case it appears to contradict that firms should;

  • put consumers at the heart of their business and focus on delivering good outcomes for customers
  • ensure that customers can use their products as reasonably anticipated
  • ensure that customers do not face unreasonable barriers (including unreasonable additional costs) during the lifecycle of a product or service

https://www.fca.org.uk/publication/finalised-guidance/fg22-5.pdf

The FCA are putting a big push on banks surrounding Consumer Duty, so use this to your advantage and query how they are complying with it in this case - they have to provide evidence that they are complying with it. Also mention you want to make an official complaint and by law they have to then register your compliant and provide you with a complaint process. Use key buzzwords & terms for this part like 'customer journey has been terrible', 'very poor customer outcome' etc etc. Google their values on their website and stress your experience does not meet these values. You will also be needing financial compensation for loss of funds from having your business account blocked, compensation for late payment off wages and anything else that may be affected (mention this when speaking about unblocking your account also). The length of time it has taken for this could also be unreasonable if it is rolling on.

You certainly can also make a complaint with the FCA and detail the above, as well as the FOS https://help.financial-ombudsman.org.uk/help. The bank should make all this clear to you if you complain (and even if you are unhappy with the service should state it), so make a note if they don't. All their calls should be recorded (again they should mention this) so you can take them up if they don't mention either. You may also be entitled to compensation from the FOS.

The bad news is, this all takes time and unless they remove the block from your account today of their own accord, there is nothing immediately that you can do to get it unfrozen if they refuse I'm afraid.

If you have the funds to pay staff outside that account somewhere, setting up a Starling or Monzo business account and using it to pay is the next best thing. Always useful to have them and some cash sitting in them for future use also.


lurganblue

Have you links to The Firm?  ;D

In all seriousness that sounds like a complete nightmare!

armaghniac

Tell them that you have to pay the taxman and that they are preventing you following the law.
If at first you don't succeed, then goto Plan B

delgany

#8
Had a nightmare with Ulster Bank Business Account for 2 years , due to Business Profile needing updated. Took the customer services 2 years to finally sort out all the details, they continued to  claim process incomplete . Complete shambles !

5times5times

Gents, been doing some research on the years old debate of debit v credit card for all purchases.

More I read online, they suggest debit card only used ever for withdrawing cash?

Is AMEX the way to go? Or is it still a tender not offered by lots of places all over Ireland?

illdecide

Got the block lifted today and I think it's sorted, they said if they need any further information they'd contact me. I asked them If I could make a complaint to Financial Conduct Authority and the Prudential Regulation Authority and I believe someone is going to call me from their complaint team in the next few days. They put £30 compensation into my account today...I told them where to stick it (in a nice way) but they lodged it anyway...Rats.
I can swim a little but i can't fly an inch