What’s your reason for me giving you back your money?

But Eric Leenders, head of retail at the British Bankers Association, said banks were sensible to ask questions of their customers: “I can understand it’s frustrating for customers. But if you are making the occasional large cash withdrawal, the bank wants to make sure it’s the right way to make the payment.”

The arrogance is incredible…

It’s appeared in different places, this story of a man who went to make what the bank called a “large withdrawal”, a few thou on his account and was refused because he could not give a reason.

It’s worth repeating – the bank refused to give the customer his money.   One commenter asked what would they do if the customer had closed his account and demanded payment in full?   Reason – going elsewhere.

However, another commenter pointed out that if you put money into a bank, you are an unsecured creditor of the bank – it’s their money in their eyes.

Possibly this is one area where all our political views converge.

UPDATE:  Sky reports that customers of Lloyds and TSB, as well as those with Halifax, have reported difficulties paying for goods in shops and getting money out of ATMs. All three banks are under the Lloyds Banking Group which said: “We are aware that some customers are unable to use their debit cards either to make purchases or to withdraw money from ATMs. “We are working hard to resolve this as swiftly as possible and apologise for any inconvenience caused.”


9 responses to “What’s your reason for me giving you back your money?

  1. I get a quarterly ‘input’ to my account from my military pension and very promptly (within a day or two) withdraw most of it in cash. No-one in the bank has asked why I take out a largish lump sum nor what I intend to do with it. They would get very short shrift if they were so impertinent.

  2. xX UPDATE: Sky reports that customers of Lloyds and TSB, as well as those with Halifax, have reported difficulties paying for goods in shops and getting money out of ATMs. XX

    Sounds like a bank crash on the way to me.

    XX what would they do if the customer had closed his account and demanded payment in full? Reason – going elsewhere.XX

    Tried that here after one of their upstarts “Duzt” me. They would only pay direct to another account, or by cheque (Which are virtually unknown here nowdays. I have never seen one in Germany) payable to another account.

  3. This is one eye open stuff. There have been numerous suggestions that all is not well in the world of global finance and thanks to the increasing number instruments to create money out of thin air, we are effectively looking at a system that has become a delicately stacked house of cards.

    Within this, definitions have been manipulated. Whilst it is our money, I first saw this redefining of customers as creditors start to come to light about 6-8 months ago. That’s how it always seems to take hold. A faint whiff or “philosophical” debate that becomes a default view with no obvious trail as to how we got here. It was also suggested that the redefinition to creditors and unsecured ones at that, put us on a pecking order if the bank got into trouble. The end point being we can all just whistle if it goes pear shaped.

    I’m no financier but there had also been an interesting theory bouncing about the IT issues blocking access to accounts and it cropped up when RBS first encountered a similar issue. A question was raised (by John Ward I think) as to whether it was a useful tool for maintainin the illusion of liquidity, because when banks have to report on their assetts at the end of the day, such a problem could allow them to look in ruder health than they might actually be. Not saying this is the case at all, but it made an interesting theory.

  4. Amfortas – way I do it too.

    Furor – sure looks like it.

    Restoring Britain – excellently put.

  5. Bank notes bear the signature of the chief cashier of the bank of England and belong to the bank. A piece of paper with a promise to pay. So how does one pay a debt? Think about it. Ask in the bank for five pounds weight of silver which is what a £5 note says it’s worth. I promise to pay the bearer on demand etc. Now, if companies take an IOU from the chief cashier which cannot be cashed in for physical weatlth, why not send them an IOU signed by yourself? It’s a paper exercise and IOUs are legal instruments.

  6. Yes, they are legal instruments, IOUs but we;re so far from legality now in this fair land, except when they apply it to us. Then it’s the letter of the law.

  7. “it’s their money in their eyes”: rather more to the point, it’s their money in law. “The arrogance is incredible…”: I doubt that it’s arrogance, it’s much more likely fear of the anti-laundering legislation.

  8. We are now required to sit an anti-laundering exam every year, it takes about an hour and is very detailed. Don’t blame the banks, the governments and legislators are setting the agenda.