I run a small media consultancy company in the UK and one of my contract was to secure accommodation and insurance for 27 students in Ireland and the client is a foreign government. The government transferred over one million Euros into my business account to suport the scholarship scheme. After the money came into my business account, I made some transfers and withdrawals from the account. Suddenly, the bank blocked the account and after about seven weeks of investigation, the bank sent back the balance in my business account of about £600,000 back to the foreign government account and closed the account without contacting me. Now, my reputation is in question. Although the money was returned to me by the government but they have refused to give me further business or contract following the action of the bank. They believe that my integrity is questionable because of the bank action. Can I sue the bank for damages?
Well, it was the first time that I opened a business account with the bank and I had explained to them what type of business I was into and that payments sometimes will exceed One Million Euros.
The payment into the account was 1,040,400 Euros
You could try and sue the bank but they will have a right under the terms of the business and the contract you signed to be able to suspend an account and hold onto the money. Further they have a right to hold money in the UK under Money Laundering Regulations.
Sadly therefore they do have a contractual right and if you sue for this, you would lose.
However you can complain to the Ombudsman. Their website is: www.financial-ombudsman.org.uk
They can investigate to see if the banks have committed any wrong doing.
I am sorry as I know this is not the answer you want and certainly not the one I want to give you, but I have a duty to be honest.
Can I clarify anything for you about this today please?
Thank you so much for your kind and honest response.
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