There have been a series of errors made by banks during the pandemic.
Now, it seems like Natwest are the next in line to make a big mistake.
Accounts Closed With No Warning
Business owners have reported that Natwest have shut down their small business accounts, after they had applied for government backed support loans.
Obviously this has had massive implications for their business – they’ve not been able to access their loans when they needed it most.
However, Natwest say that they aren’t closing accounts at random. It seems as though the bank believes that they had valid reasons to close these accounts.
All Of A Sudden Things Changed
The bank’s decision to close these accounts at a critical time has caused uproar from customers, mainly due to the lack of explanation they are getting.
The fears of ‘I could be next!’ are prevalent.
The story gets strange here… because the Businesses in question had just been approved their government backed loans by Natwest, and expected the funds to arrive in their account.
All of a sudden things changed!
In a massive U-turn decision – Natwest have gone from approving a loan, to closing the account.
Now these businesses are in a position where they don’t have the money they need – and potentially can’t reapply for the loans. If they can get hold of the money again, it’s likely to be a long and arduous process.
NatWest said in a statement:
“We know this is a difficult and stressful time for our smallest business customers, and we’ve been working tirelessly to deliver the government schemes in a secure and robust way – successfully supporting 23% of all lending across the three schemes. Unfortunately, not all applications are eligible.”
On the closing of accounts they said: “Investigations confirm that the reason for closing these specific customers’ accounts is valid.”
Customers, however, want peace of mind by Natwest actually explaining this ‘valid’ reason.
What Happens Next?
The Natwest group has been responsible for over 1/5th of the lending across the three government backed loan schemes.
At the moment there are no reports suggesting that this is happening to other business owners, with other banks.
The figure of exactly how many accounts Natwest closed is still unknown, as are the specific reasons why Natwest closed these accounts in the first place, right after approving them from a loan.
The news broke on social media as Twitter users complained about ‘closed accounts’ and a Facebook group called ‘Natwest Closed Down My Account’ soared to over 1000 members.
The quick turnaround from approving a loan, to closing an account, is the most strange and significant part of this situation.
However, if you have any more information that we can pass on to support business owners during this time – we’d love to hear from you below.
Get More Business Blogs Like This
Interested In Our Accountancy, Tax, Bookkeeping & Payroll Services?
Get In Touch Below