How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Alice H Your Own Question
Alice H
Alice H, Solicitor/Partner
Category: Law
Satisfied Customers: 2850
Experience:  Partner in national law firm
Type Your Law Question Here...
Alice H is online now

Hello I am currently a university student in London. I have

This answer was rated:

I am currently a university student in London. I have my student loan paid into my natwest account for the past year but after receiving my latest loan installment my Bank has frozen my account saying it is because the payment came into the account in two separate payments instead of one ie one for the Student Loan (£2062) and the other for my Student Grant (£1118). They asked where the funds came from even though the payment reflects that it came from The Student Loans Company and that I have had two prior payments from them.

I don't know why the payment was split and contacted Student Finance England to ask them and they said that the way the funds are sent out is between the banks and they merely authorize their bank to make payment .

They said they did not ask my bank to freeze the account and that my bank had not contacted them to inquire about the payment and that even if they did, they could not give them any info due to data protection. They said as far as they were concerned they paid the money into the account I gave them and thus it was a matter between my bank and I.

They advised me to take my correspondence from them and show the bank the details of my student loan. I called the bank to do just that but they said they didn't need to see it right now as they were still carrying out their investigation

In the meantime I cant access my money. It has now been three weeks and I am unable to attend my classes or pay my rent. This has left me in dire straights as my exams are next month and if I cant get back to my course there is a real danger of failing the entire year.

Could you kindly advice me of
1) My legal rights in this situation
2) If the Bank can hold my funds indefinitely as they "investigate"
3) If I can begin legal proceeding against the bank. Failure in the second year of my course will mean that I will have to retake the year and will still be liable to repay the tuition fee and loan part of my student finance award for this academic year. It would also mean taking on an extra year of student loans increasing the amount I have to pay back

Thank you

Alex Hughes :

My name isXXXXX and I'm happy to help with your question today. I need to ask you some preliminary questions to be able to help you.

Alex Hughes :

The bank which has frozen your account - is it the local branch?


I am not sure. I was trying to withdraw money at ATM and couldn't then couldn't log on to my internet banking so called Natwest customer services who said the account was frozen

Alice H and other Law Specialists are ready to help you

You cannot allow Natwest to fob you off. Its already been 3 weeks so you need to take some action immediately.

You should start by ringing customers services immediately and lodge a formal complaint on the telephone. Keep ringing them every day until this is sorted out.

Second you should send the documentation you have by fax and also make it clear to the bank that you are suffering hardship as a result of their delay. In your letter you should also tell them that you will hold the bank responsible for the delays and any losses you will suffer.

They have an obligation to provide you with a proper service. Failure to do this gives you the right to complain and/or sue the bank for damages.

Natwest is notoriously slow for dealing with complaints - it can take anything around 28 days or so to get a response - but of you keep chasing them you might get a response sooner.

I am happy to discuss other options too. Please let know of you wish to do this now or after you have called and faxed them.