ShakyhandsBTCer, Baitty, If you have something to add, please read at least the first page: the accounts were not overdrawn.
It was certainly bitcoins that upset them. What drew attention to the account was many small deposits and larger overseas payments.
I have now shut down my Lloyds trading account they dont want it and it seems dangerous to keep it open longer.
I have approached every other High Street bank and asked if I can open a Business account and told them that the business involves Bitcoins. The answer has been in all cases, a rapid, "No You can't".
Even a few unusual banks like Bank of Cyprus and Bank of China, (Yes, they are Uk high street banks as well.)
I believe now that the current situation is that if you run a business that involves bitcoins you cannot be upfront about this with your bank or they will shut you down. They will most likely do that anyway once they discover.
That's bad news. So the only safe way of trading Bitcoin in the UK is through cash and locally? otherwise you risk losing your bank if you use any of the UK banks.