Lloyds TSB the T must stand for Tulipe

[vetran]

It’s utter madness and it defeats the whole object of banking. It is less hassle using cash. A friend (who is a sitting tenant), his landlord made a call to Lloyds-TSB and accused my friend of identity fraud in order to evict him. Lloyds-TSB froze his account, despite showing Lloyds-TSB his passport etc, three months on his account is still frozen. He may have to seek an injunction.

Blimey - crafty.

[The Spartan]

I suppose the problem is they have no way of knowing you've issued a dividend, and their automated system flags it up as dodgy

Although if you have your personal and business accounts with the same bank, it shouldn't happen. If you were cynical you might think they want to push you into doing this

True but the thing is I now have to go through the trouble of proving my association to my Ltd and also that I initiated the transfer, when really it's none of their business it's not as if I turned up at the branch with an envelope stuffed with dirty £20's

[The Spartan]

I bank with Lloyds and have never had any issue when transferring large dividend payments, 20k-30k.

Now if I was transferring anything near that I then I'd understand but for a few thousand I think it's overkill

[amcdonald]

the banks have form for emptying business accounts to pay off authorised personal account overdrafts.

Keep them separate !

Surely that is theft though, just because they've done it doesn't make it legal

[Underscore Pt2]

Now if I was transferring anything near that I then I'd understand but for a few thousand I think it's overkill

If you are sending from X to Y bank they are just following due process. Its part of Money Laundering Rules. As others have said if you have both accounts with the same bank you dont get this issue as they know who you are and where the money is from.

[vetran]

Surely that is theft though, just because they've done it doesn't make it legal

Small print!

Setting Off Rules: Know Your Rights - Money Saving Expert

"The Bank may, without notice, set off a debit balance, or debit interest, on an Account against any Account with a credit balance or credit interest held by the same Account Holder."

[Ticktock]

Small print!

Setting Off Rules: Know Your Rights - Money Saving Expert

Surely the account holder of my business account is MyCo Ltd, not me - I am just an authorised rep of MyCo?

[amcdonald]

Small print!

Setting Off Rules: Know Your Rights - Money Saving Expert

But the bank account is held by your company not you

You only open the account in your capacity as a director of that company

It's the same as if you use your companies account as a personal piggy bank it is not legal

[vetran]

Surely the account holder of my business account is MyCo Ltd, not me - I am just an authorised rep of MyCo?

you expect Bank staff to understand the distinction or even care?

Its account holder. Unless you are very large all their forms make you the 'account holder' so if it gets overdrawn they can take your house.

[The Spartan]

If you are sending from X to Y bank they are just following due process.

That could be true but then again I used to transfer more money across when I was working away, which I then use a forex service to transfer into CHF