Nationwide ‘locks down accounts’ leaving people without access
Nationwide has blocked ‘lifeline accounts’, leaving users without access to vital funds as the bank will stop offering the account type altogether beginning today.
Many of the trust accounts, accessible by a third party nominated by the account holder, have been effectively ‘axed’, alarming users of the popular bank.
The accounts are most often used by those with disabilities and learning challenges.
One Nationwide user, James Trotman, told The Guardian his disabled son’s life savings were ‘locked’ and unable to be accessed.
The banking giant asked him to resubmit verification documents – but a month on, his account is still inaccessible.
James said: ‘We were informed in September that the account would have to close by December 23 as Nationwide was ceasing to offer the service. When we tried to withdraw the funds we were told that all trust accounts had been blocked as they had to be re-verified before they were closed. I provided all the requested information, but a month later we were still unable to access the money.’
A spokesman for Nationwide told Metro: ‘We are closing some trust accounts and have been writing to trustees outlining their options. Where there is an ongoing need for a trust account, a new account will need to be opened elsewhere.
‘We needed information from the customers prior to closing the account and a security block was placed on the account while this took place. This information has been received from the customer and the block has been removed, with the funds released.
‘We apologise for the inconvenience that completing this process has caused.’
CEO Jon Sparkes of Charity Mencap, which works with individuals who have learning difficulties, told the Guardian: ‘We’re hearing from an increasing number of families of people with a learning disability who don’t know where to turn.
‘Some already have a disabled person’s trust account in place but have been warned it is now due to close and others can’t set one up because banks no longer offer this type of service.’
Nationwide isn’t the only high street bank shutting down many trust accounts – currently, Metro Bank is the only one still offering the accounts, though any accounts with less than £25,000 pounds cost £5 per month to operate.
Santander’s private banking service, Cater Allen, do offer trust accounts – but they’re only available if an individual is referenced by a solicitor or financial adviser.
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