Bank witholds "instant access" account funds, 2 month delay on any and all withdrawls Options

[DoctorSolar]

Hi folks,

I opened a one year fixed interest account with a certain well known UK/European bank exactly a year ago. On maturity the account automatically converts to an instant access account. However, when I called up to remove my funds from this instant access account I was informed that a 2 month delay was now in force on any and all withdrawls!

I received absolutely no written warning and only found out when I called to draw down the funds.

They have changed the terms and conditions of the agreement without my consent and therefore I believe they are now in breech of contract.

Imagine if I had entered in to a contract with another party based on the assumption that the fund was as advertised "instant access" I would be financially screwed!

Im off to the citizens advice to get some free legal advice on how to proceed but any advice from folks on here would be much appreciated.

I suspect this delay tactic is because they dont actually have the depositors funds at all. They are bankrupt!

I can't communicate how "incandescently angry" I am about this.

[TrueNorth]

man, that sucks. fingers crossed you get it resolved asap.

[ziknik]

I suspect the person you have spoken to has made a mistake. All accounts allow withdrawals within a few days, even the term accounts (at forfeit of interest).

Phone up the bank again and go through the banks complaint procedure.

What bank was it?




EDIT

http://www.financial-ombudsman.org.uk/cons.../complaints.htm

Phone the FSA after you’ve been through the complaints procedure and claim you were intending to buy [whatever has gone up in price]. Tell them you want your money and you want to be paid compensation for the investment losses they’ve cost you.

I complained to the FSA about A&L after they took £5 out of my account. The FSA found in my favour and awarded me my £5 plus £50 (10 times) compensation. The cheque came today but it has taken nearly 9 months to sort out.

[creditcrunch]

I suspect the person you have spoken to has made a mistake. All accounts allow withdrawals within a few days, even the term accounts (at forfeit of interest).

Phone up the bank again and go through the banks complaint procedure.

What bank was it?

Lets place bets.... Can someone start a vote?

My money is on Barclays, as they have screwed me in the past.

[ziknik]

Lets place bets.... Can someone start a vote?

My money is on Barclays, as they have screwed me in the past.

I'm guessing A&L/Abbey/Santander

[DoctorSolar]

I suspect the person you have spoken to has made a mistake. All accounts allow withdrawals within a few days, even the term accounts (at forfeit of interest).

Phone up the bank again and go through the banks complaint procedure.

I phoned them again just now and apparently there has not been a mistake.
They said there was a "backlog of requests to withdraw funds" and that this was causing the delay.
Seems to me like there is a run on this bank big time!
If they have the funds why can't they release them?
The only answer I can think of is they dont actually have the funds!

[Mr P]

I phoned them again just now and apparently there has not been a mistake.
They said there was a "backlog of requests to withdraw funds" and that this was causing the delay.
Seems to me like there is a run on this bank big time!
If they have the funds why can't they release them?
The only answer I can think of is they dont actually have the funds!

Could you please say the banks name - might give some warning to others.

[wren]

I phoned them again just now and apparently there has not been a mistake.
They said there was a "backlog of requests to withdraw funds" and that this was causing the delay.
Seems to me like there is a run on this bank big time!
If they have the funds why can't they release them?
The only answer I can think of is they dont actually have the funds!

Precisely.

Go on, name the bank.

[ziknik]

I phoned them again just now and apparently there has not been a mistake.
They said there was a "backlog of requests to withdraw funds" and that this was causing the delay.
Seems to me like there is a run on this bank big time!
If they have the funds why can't they release them?
The only answer I can think of is they dont actually have the funds!

They could type in the receiving bank sort code and account no. in less time than it takes to handle your phone call.

The backlog story must be bull$xxx

Which bank?

[creditcrunch]

There have been a couple of articles in the news about the return of the Credit Crunch.

I'm keeping a list here.

It could be a German bank.

[lowrentyieldmake...]

From: http://www.youtube.com/watch?v=MJJN9qwhkkE

[DoctorSolar]

Which bank?

Sorry to keep you all waiting for the name.
I didn't want to say it immediately in case there had been some kind of mistake.
I didn't want to unnecessarily scare people who have deposits without confirming first.

Its a post office account which is administered by the bank of ireland.

Seems to only be affecting growth bonds which are converted to instant access saver accounts on maturity.

They gave no further explanation of the delay other than "there is a massive backlog of requests for withdrawal"

When I get my funds back there is no way in hell it is going anywhere near a bank. No sir physical gold and silver is the way for me now.

[Mr P]

Like Ziknik said, take a look at the T&Cs and get on the phone to the FSA. Sounds like a bit iffy.

[lowrentyieldmake...]

growth bonds

growth bonds can they get away with that description

[ziknik]

Like Ziknik said, take a look at the T&Cs and get on the phone to the FSA. Sounds like a bit iffy.

http://www.postoffice.co.uk/portal/po/cont...400710#38600265

How do I make a withdrawal?

You can access your money 24/7:

from ATM cash machines
from Post Office® branches
online^
by post

You can withdraw up to £1,000 a day in cash (as long as you have money in your account, of course) from our nationwide network of branches and any one of 60,000 Link ATMs around the country.

Withdrawals up to £15,000 can be made to your nominated account through our Telephone and Internet Banking Service. You will need your 6 Digit Security Number to access this service. Withdrawals made through BACS are transferred directly out of your Instant Saver account and are normally credited to your nominated account after three working days. The cut off time for BACS payments being processed is 4pm.

There is no limit on the value of withdrawals (by cheque or transfer to your nominated account) you request by writing to Post Office® Savings, PO Box 198, Widnes WA8 2AA.

Please note outbound CHAPS are not offered as a payment method and we do not offer a facility to pay funds to a third party. You can make six free withdrawals in any financial year (from March 21st to March 20th), with any after that costing just £1.

^Currently Mac users are unable to manage their accounts online. It can still be accessed by phone, post, at 60,000 ATMs and at your local Post Office® branch.

[DoctorSolar]

Thanks for the T&Cs posting. I had a look at that earlier today when I was first told of the 2 month wait period being imposed. So they are clearly in breech of contract. As I said earlier this only seems to be affecting those instant access accounts that were initially growth bonds.

I will take this up with the FSA tomorrow and let you know what happens.

Thanks all.

[HPCSucks]

I phoned them again just now and apparently there has not been a mistake.
They said there was a "backlog of requests to withdraw funds" and that this was causing the delay.
Seems to me like there is a run on this bank big time!
If they have the funds why can't they release them?
The only answer I can think of is they dont actually have the funds!

If it's Abbey it doesn't surprise me. An elderly relative of mine has been turned away twice, after queuing at a branch, because they had no cash behind the counter. She's old so won't move the account.

[No6]

I don't know what to make of this. Looking around the web and other forums/news feeds, I can't find anyone else complaining about this. Two months seems a very long time and I would have thought that the web would be full of people complaining of how unreasonable it is and concerned that something might be wrong, especially as it is the Post Office and you have been advised "there is a massive backlog of requests for withdrawal". Why is no one talking about it?

[DoctorSolar]

I don't know what to make of this. Looking around the web and other forums/news feeds, I can't find anyone else complaining about this. Two months seems a very long time and I would have thought that the web would be full of people complaining of how unreasonable it is and concerned that something might be wrong, especially as it is the Post Office and you have been advised "there is a massive backlog of requests for withdrawal". Why is no one talking about it?

They have now told me that during the 2 month waiting period I will continue to receive 7% interest on my deposit. Given that this is double most other current rates perhaps other people are happy to wait?

On the other hand surely other folk must need access to their cash and have financially planned on getting it now.

After threatening them with a call from the FSA they then said I could get my cash back in 10 working days if I wrote to them requesting my deposit back right away. Something does not add up here. Surely this must add extra admin to the process. How does opening a letter from me magically speed up the process?

Anyway 10 working days after sending written request is not exactly "instant access". I will be pursuing a damages claim and let y'all know how it goes.

[creditcrunch]

They have now told me that during the 2 month waiting period I will continue to receive 7% interest on my deposit. Given that this is double most other current rates perhaps other people are happy to wait?

Isn't it wildly thought that the next 2 months are when its going to SHTF? It's odd that they are being so generous to give you 7% when they don't need to be losing that money?

I think they are using your cash, along with others, to shore up before the next wave of financial crisis... by then, what ever they are investing in will be worth much more that the 7% you are getting. Perhaps your investment currency will devalue... making that 7% look like nothing special.

Perhaps you should write to them and let them know, you have an invoice for a gold order that can;t wait... and that you will persue them for any penalty you have to pay... and any profits lost in the investment.

sounds extremely fishy to me...