Financial Compensation Scheme Worth Anything On Paper?

[OldChestNuts]

Barclays bank had closed on my account without my knowledge and they have kept my money.
I needed my savings for health treatment and they have not given any reason to keep my money when I tried to ask for my money.

Had anyone used the FCS protection to claim from banks? How is this claim in practice?

[New Judge]

Write to them and ask for it back. See what they say in reply and then take it from there. Banks do not routinely close accounts and keep the proceeds.

[New Judge]

And I forgot to add that the Financial Services Compensation Scheme is designed to pay compensation when banks and other institutions go bust. It is not applicable when you are trying to claim money from an organisation that is still solvent.

[brainiac]

Presumably Barclays have written to you about this - what did the letter(s) say. Did they give you any warning, or a reason for closing your account? A reputable bank would never keep a customer's money.

[ubasses]

FSCS can only be used when a financial institution goes bankrupt. You need to exhaust all avenues with Barclays first and if you do not get a satisfactory resolution write to the Financial Ombudsman.

[bobbinwales]

There must be a misunderstanding surely. Presumably its a fairly large amount too.
How do you know its been closed and there keeping your money? Have they wrote to you. Does there letter really say there going to keep the money? Have you spoken to them?
You cant go to FCS until youve followed the Barclays complaints .procedure.

[bobbinwales]

Yes sorry , meant FO to FCS.

[bobbinwales]

Is it possible its a temporay block as part of perhaps a money laundering investigation or fraud investigation (eg covid grants) - have the given any reasons

[OldChestNuts]

The account was a saving account and it was used to keep my savings and I haven't been actively using the accounts as I have other accounts with them. They said they have written to me about the closure. I only seen the letter when I went to the branch to ask about the account and they printed me the letter that it was closed due to inactivity. The branch asked me to go online to apply for the loss and trace of account. The website they referred to is infact a third party website and got nothing to do with Barclays. So they are asking me to apply through a third party loss and trace account/money. The website stipulated that its service should not be used if I know the bank/account details (which I have). So I phoned the Barclays customer service and they didn't know how to return my money. They just bounced from one phone number to another.

[OldChestNuts]

Now I have to closed all my other ISA accounts, including Barclays to get the emergency fund.

[ubasses]

As you will not be able to progress to the ombudsman, until the complaints procedure has been exhausted. I think it would be a good idea to write a letter addressed to the Branch Manager, by name if possible.
Lay out in the correct order everything that has happened so far. Point out that you are very disappointed with the way that the matter has been dealt with and that you will be expecting to receive a speedy resolution and the reinstatement of your account, allowing you to continue with your required medical treatment.
If things do have to go further it is always best to have a paper trail of evidence. The problem with phoning these days is that you are getting different people in call centres and there is no continuity.

[ubasses]

Do not just close your ISA, you will lose the tax benefit, if it comes to it ensure that you get a a new provider to transfer it over to them.

[Paigntonian]

This doesn't ring true at all.

[OldChestNuts]

Ubases: I have no choice is to close the ISA to use the money for the treatment. If the money held by Barclays was returned to me and I was able to withdraw - I wouldn't needed to close the ISAs.
Barclays have let me down and all my families down. As I have to borrow from families as well to find the treatment.

[bobbinwales]

There are procedures for dormant accounts where its not possible to trace the account holder and the money now goes to somewhere useful (charities, treasury, cant remmember) but if you have other 'live' accounts in your name they must of been able to trace you, so cant be dormant accounts

[bobbinwales]

Its an odd one as described. maybe theres more to the story

[barry1010]

If they wrote to you then it can't be an untraceable account. Follow Ubasses advice and write to your branch manager before taking it further

[ubasses]

OK, I understand re ISA's, but to progress with the 'dormant' account, you really need to get a formal complaint underway, with everything in writing, giving you a paper trail for any further follow through. I quite expect that the first letter will get things resolved.
I am giving this advice with 37 years in Banking and was a Branch Manager when I retired.

[TonyV]

Are there any details you aren't disclosing in your original post. Banks will not just close your account, you may have been shown copy of letter that was sent, but that's no proof that you recieved it. In first instance you need to write to branch manager, I would send it recorded delivery. Does they bank not have any other contact details for you, e.g landline number, mobile number or email address?

[OldChestNuts]

Tony: The letter refers to inactivity. Nothing fraudulent about the account. It is a personal account and all my incomes are traceable to employment salary.

[TonyV]

Well they would have contacted you first before closing the account. As previously advised write to the branch manager in the first instance.