Business Account Frozen for 82 Days Prevents Access to £700,000

A property rental company experienced significant financial distress after its business account, held by Anna Money, was frozen for 82 days, rendering over £700,000 inaccessible. The freeze occurred shortly after a substantial transfer of funds into the account, which the company intended to use for purchasing a block of student flats.

Timeline of the Freeze and Near Loss

The situation escalated as the frozen funds jeopardized the completion of the property purchase, with only days remaining before the deadline. Failure to meet the terms of the purchase risked potential losses of nearly £100,000 for the business. The company repeatedly sought explanations from Anna Money (Absolutely No Nonsense Admin) and its regulated payments institution, PayrNet, regarding the delay and the return of funds. Despite being a customer for approximately three years without prior issues, the company received no clear timeline or explanation for the account closure.

Solicitors' letters were sent to both Anna Money and PayrNet, urging action due to the pressing deadline and potential financial losses. After considerable delay and lack of progress, the case was brought to Sally Hamilton for assistance.

Resolution Amidst Urgency

Banks and payment providers have the right to close accounts for various reasons, including regulatory compliance, fraud prevention, money laundering rules, or if a customer is deemed not economically attractive. New regulations implemented on April 28 mandate longer notice periods (90 days instead of 60) and more detailed reasons for account closures for accounts opened since that date, though this case predates those changes.

The company's suspicion was that the recent deposit of over £700,000, unusual for their typical transaction volume, may have triggered the account freeze. Despite providing extensive information to satisfy due diligence requests, the account was ultimately shuttered. The company had reluctantly accepted the closure but anticipated a prompt reimbursement to proceed with their property purchase.

With the completion deadline looming just three days after the company sought help, and with a £63,750 deposit and a £29,374 auction reservation fee at risk, intervention was sought from Anna Money and PayrNet. Shortly after contact was made, the situation rapidly improved, and £701,626 was transferred, just in time for the purchase deadline.

Anna Money stated that while they cannot comment on specific checks or their conclusions due to confidentiality, they are glad the issue has been resolved. PayrNet affirmed their commitment to legal and regulatory obligations and their efforts to resolve concerns swiftly.

Other Consumer Issues Addressed

In a separate case, a customer experienced double-booking issues with Hotels.com, resulting in unintended charges of £1,151 for two extra rooms. After initial refusal of a refund due to 'non-refundable' deals, Hotels.com eventually agreed to provide a full refund after the case was escalated.

Another customer reported a painting sent via DHL that was held in customs for unpaid duties, with no notification sent to the recipient. Evri, which has merged with DHL eCommerce, stated the parcel is being returned to the sender.

Additionally, a customer encountered issues with Standard Life regarding an annuity purchase. After accepting a quote for £80,191, they were informed of an error in the rates and later found no record of their transaction despite having paid the funds. Standard Life has since apologized, provided compensation, and confirmed the annuity is now active and backdated.

Finally, a British Airways passenger who missed a flight due to a bacterial infection successfully claimed back the Air Passenger Duty. Despite initial difficulties with file access for medical records, BA issued a refund of £159.80.