Blocked Current Account

S

superdrog

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A friend recently took out a €25000 loan online for home improvements from a major bank. The funds were transferred to her Current Account which is with a different major bank.
The work commenced and everything was fine until last week when her bank blocked her current account. On contacting her branch by phone she was told that the original loan provider had reconsidered the loan and requested that the €25000 be returned to them. As c.€6000 had already been outlayed on the work her bank was unable to do this but instead blocked her account. A week has passed and she has still not received any written communication from either the loan provider or her bank.
The account blocking has caused her considerable distress as she has always enjoyed a good relationship with her bank and the account was always maintained in an exemplary fashion. Some direct debits and a cheque were returned despite their being sufficient funds in the account(over €19000) which she checked on her online banking. She is also unable to access her salary which was paid into the account.
What are her options?
 
Speak to her bank? Has she done this yet or is she just waiting to be contacted in writing?
 
yes , as posted above she has spoken to her bank by telephone requesting an explanation but has not received a response in writing either from her bank or loan provider. A week has now elapsed.
 
Sorry, I misread...Can she arrange to go in and see the manager? It sounds very odd....Has she contacted the loan provider?
 
This is a first on me - never heard of such a thing happening - think your friend needs to talk to lending bank asap.

Regards,

BM
 
Without knowing the full facts, persons etc. and dates of transfers, dates of stopping etc., this seems incredible. There is a short period when a transfer is made for it to be recalled - maybe two days (not 100% certain). From the outset this appears to be a definite case for the Financial Ombudsman, and if it is as you have stated, a large amount of compensation should be sought. Tell your friend to place all contact / confirmations of conversations in writing to build up a case file.

Customers must have ethics and so must Banks.
 
mercman said:
Without knowing the full facts, persons etc. and dates of transfers, dates of stopping etc., this seems incredible. There is a short period when a transfer is made for it to be recalled - maybe two days (not 100% certain). From the outset this appears to be a definite case for the Financial Ombudsman, and if it is as you have stated, a large amount of compensation should be sought. Tell your friend to place all contact / confirmations of conversations in writing to build up a case file.

Customers must have ethics and so must Banks.
Click to expand...
Trust me the circumstances are exactly as stated. A period of three weeks elapsed from the date of the funds transfer to the date of the blocking. Just one thing that I should have mentioned earlier - when she sopke to the branch manager he was very apologetic and said that the block was placed from the banks head office and not the branch. He was to seek further details and get back to my friend but to date he has failed to do this. She asked for a written explaination.
Have never had reason to contact the Financial Ombudsman before , what is the procedure? She has considered seeking legal advise , are there any solicitors who specialise in this area?
 
Better still having instructions coming from Head Office. Also they are totally outside their remit acting three weeks after the transfer. People forget that they have rights. Re the FO I will send you a PM now.
 
superdrog -I would say that somebody is just trying to wind you up
 
Thanks for the pm Mercman , will reply shortly.
As for the CAB - cannot understand why it would involve them as I know for fact that there is nothing irregular going on on my friends side.
 
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