Cater Allen - Terminated account 60 days notice

[borderreiver]

Cater Allen and a bunch of other banks have been reducing their exposure to what they consider "risky" clients (notably those with foreign citizenship or regular foreign transactions) as the business risks associated with money laundering and other regulations increase.

As if the banks ever really had a problem with money laundering ...

Seriously, though, this is ridiculous. Foreign transactions equals dodgy?? I have some overseas clients. Sounds like MyCo will have to stop trading soon if it can't get a business account anywhere then

[jamesbrown]

As if the banks ever really had a problem with money laundering ...

Seriously, though, this is ridiculous. Foreign transactions equals dodgy?? I have some overseas clients. Sounds like MyCo will have to stop trading soon if it can't get a business account anywhere then

I agree, but this appears to be the case. The pattern with Cater Allen closing accounts seems to be largely related to foreign connections (Director moving overseas etc.). It isn't clear exactly how they're discriminating and whether foreign transactions in themselves are important (they probably aren't, and afterall Cater Allen offer multi-currency accounts), but the risk profile seems to have been re-weighted towards plain vanilla UK-based operations.

[andyc2000]

Does anyone business bank with Metro? I have a personal account there and Business is free for balances over 5k. All staff apparently are trained for buysiness banking. I'll be using these if CA do anything like this to my account.

[MarillionFan]

Has this happened to anyone else? I have been banking with Cater Allen for 5-6 years and my account has always had a very healthy surplus, all of a sudden I have received a letter stating that they are terminating my account and they don't have to tell me why. I have always been extremely happy with them so this has come as a complete shock! can anyone shed any light on the matter and can anyone recommend another good business account?

Maybe calling your company Islamic Jihad Computer Solutions Ltd was a mistake?

[Glencky]

I think this issue might be about a targeted withdrawal from certain market sectors.

I had terrible problems in January when I started contracting. I was going to go with Cater Allen as my accountant recommended them and had special terms (at the time I was most interested in 'easy to open' and 'free banking for a period) and this should have been both. Unfortunately they rejected my account opening with no explanation - familiar to the OP I suspect.

I called them to try to get an explanation of some kind but they declined to give one. I - as some others have suggested - suspected they were considering me a financial crime risk so immediately ordered my Expedia file etc but nothing. All was as I expected - squeaky clean. There was no reason whatsoever for them not to allow me to open an account (I wasn't even going for any lending e.g. overdraft).

Eventually I got one with NatWest who have free business banking for a year (suspect they'll shaft me after that but I've got time to shop around).

[jamesbrown]

ordered my Expedia file etc but nothing

Not even a 50% saving on Mosul hotels?

[Glencky]

Not even a 50% saving on Mosul hotels?

Hahahahahahaha Experian, even !! my mistake. Been doing a lot of business travel this year..!

[I just need to test it]

Eventually I got one with NatWest who have free business banking for a year (suspect they'll shaft me after that but I've got time to shop around).

It's going back a bit but when I began contracting I banked with Natwest. After a year they invited me in to discuss the end of free banking, how much I'd saved, how much I'd now have to pay.

I wrote to them advising I was switching to Cater Allen. Natwest rang offering continued free banking. I declined. They rang back offering to come to my house to discuss further.

So I wouldn't altogether dismiss the possibility of Natwest being prepared to extend it if the deal (i.e. your company bank balance) is in their interests.

[Glencky]

It's going back a bit but when I began contracting I banked with Natwest. After a year they invited me in to discuss the end of free banking, how much I'd saved, how much I'd now have to pay.

I wrote to them advising I was switching to Cater Allen. Natwest rang offering continued free banking. I declined. They rang back offering to come to my house to discuss further.

So I wouldn't altogether dismiss the possibility of Natwest being prepared to extend it if the deal (i.e. your company bank balance) is in their interests.

Thanks, that's very helpful. I'll try treating 'em mean to keep 'em keen..!

[JustinTime]

Thanks, that's very helpful. I'll try treating 'em mean to keep 'em keen..!

I seem to remember NatWest having a very good internet banking platform. It was certainly better than any that I've used since.