Can my TSB bank account be closed for trading bitcoins?

[ibrahim11]

Hi, my sisters TSB bank account was suspended for buying 2 btc worth a bit over £600. I asked her to buy it for me and I sent the money from my paypal (using my debit card) to her paypal and she withdrawed it to her bank account. I did this because I don't have online banking and the banks were closed at the time to make a cash deposit into her account. However, when buying 2 btc off a seller on localbitcoins her bank suspended her bank account and asked her to come in to one of the TSB branches with my statement showing them that I sent her a bit over £600 via PayPal. But they didn't accept the statement because it was printed off from a machine in branch and they wanted an official stamped one. So now I have to go to her bank with her and bring my stamped statement from my bank and a photo id (I'm under 18). But the question I want to ask is, will her bank account be closed for buying 2 btc? (the payment for the 2 btc was declined anyway by the bank, probably because she normally doesn't use that account much). Thanks

[ibrahim11]

bump

[bigasic]

Make an anonymous phone call to the bank and ask them. I know that many banks don't like bitcoin, but thats neither here nor there. I've only heard them close accounts that buy/sell a lot of coin, but thats in the USA, not sure of Europe. but it wouldn't hurt to give them a call and see what they say.

[TrailingComet]

UK banks are fast becoming a serious menace to btc
They are dinosaurs that are gonna get it between the eyes one way or the other

[BitCoinNutJob]

UK banks are a major pain in the arse, they always were back when i played online poker professionally and made "gambling cash outs" and still to this day can be funny.  The rest of UK is very accepting of bitcoin.

[itsAj]

Yes. Your bank account can be closed for any reason, or no reason at all.

Most bank account agreements say that the bank is allowed to close your account if they see fit. To argue that they should not be able to close your account is similar to arguing that the bank should be forced to do business with someone who they don't want to do business with.

[blatchcorn]

Probably they will close the account.  UK banks are pathetic like that

[BitCoinNutJob]

Probably they will close the account.  UK banks are pathetic like that

When making a 5k cheque deposit recently i got ask "where the money had come from" -  thats just crazy right i could have sold a 2nd hand car or many other things, perhaps completed a job for someone and this was my pay cheque...

[cryptofan5]

Bankers are scarred of the things they don't understand. They can just close an account without any explanation and bitcoin is a good reason as any for them.

[oceans]

Banks may close down accounts when large transactions take place, they are usually done to be on the safe side however I do feel that in most cases banks are purposely closing accounts that deal with bitcoins because they are running scared. The only way you can find out if the account was suspended because of bitcoin dealings is to make an anonymous phone call and question it.

[ibrahim11]

Went to the bank and it took 2 hours but the account was un-suspended! 

[dankkk]

Went to the bank and it took 2 hours but the account was un-suspended! 

I am glad to hear this. I am also curious as to what you had to do/say in order to get your account restored.

I suspect that it somehow involved escalating the issue to the person your were talking to's manager, and their manager and potentially continued this path.

[NewLiberty]

The banking agreements we sign in the USA give either party (customer or bank) the right to close an account for any reason, or even for no reason.
There is no obligation on either side to provide a reason, and there is strong incentive not to provide a reason for the bank.
Bank policy is typically to provide some notice, but it is not a requirement.

If they told you they closed the account because of bitcoin, that would be very interesting.  I suspect that is just your guess and that they didn't say it outright?

[Soros Shorts]

The banking agreements we sign in the USA give either party (customer or bank) the right to close an account for any reason, or even for no reason.
There is no obligation on either side to provide a reason, and there is strong incentive not to provide a reason for the bank.
Bank policy is typically to provide some notice, but it is not a requirement.

Rant: Since the US government is discouraging cash and other non-bank transactions and forcing people to use banks to make transactions more traceable, then banks should be treated more like utility companies and laws should be changed to disallow banks from closing a person's account without reason.

[NewLiberty]

The banking agreements we sign in the USA give either party (customer or bank) the right to close an account for any reason, or even for no reason.
There is no obligation on either side to provide a reason, and there is strong incentive not to provide a reason for the bank.
Bank policy is typically to provide some notice, but it is not a requirement.

Rant: Since the US government is discouraging cash and other non-bank transactions and forcing people to use banks to make transactions more traceable, then banks should be treated more like utility companies and laws should be changed to disallow banks from closing a person's account without reason.

Yes, though I'd rather see it go the other direction.
Stop discouraging cash and non=bank transactions.
Restoring freedom of association and unbridled right to contract without intermediaries would be nicer.
Bring back the 500 dollar bill and the 1000.
Money keeps getting worth less and the bills keep getting smaller.
The 10000 border limit hasn't changed since it was created despite inflation.
We know the Fed is out of control, and there is no fiscal discipline, but the people get tighter and tighter limites even as they violate theirs with the ever expanding debt ceiling.

[snappa4ever]

The banking agreements we sign in the USA give either party (customer or bank) the right to close an account for any reason, or even for no reason.
There is no obligation on either side to provide a reason, and there is strong incentive not to provide a reason for the bank.
Bank policy is typically to provide some notice, but it is not a requirement.

Rant: Since the US government is discouraging cash and other non-bank transactions and forcing people to use banks to make transactions more traceable, then banks should be treated more like utility companies and laws should be changed to disallow banks from closing a person's account without reason.

How are people discouraged from using cash? Everyone is able to spend cash with ease throughout the economy. There are very few industries that will not accept cash (airlines primarily) but this is due to logistics not from government intervention.

[runam0k]

Rant: Since the US government is discouraging cash and other non-bank transactions and forcing people to use banks to make transactions more traceable, then banks should be treated more like utility companies and laws should be changed to disallow banks from closing a person's account without reason.

I'm not sure about the US, but in the UK at least I think we're (slowly) moving in that direction i.e. banking services as a basic right, not to be withheld without good reason.  We have a financial ombudsman service that can help and the courts are always an option.

[dankkk]

Rant: Since the US government is discouraging cash and other non-bank transactions and forcing people to use banks to make transactions more traceable, then banks should be treated more like utility companies and laws should be changed to disallow banks from closing a person's account without reason.

I'm not sure about the US, but in the UK at least I think we're (slowly) moving in that direction i.e. banking services as a basic right, not to be withheld without good reason.  We have a financial ombudsman service that can help and the courts are always an option.

The US is moving in the opposite direction. An increasing percentage of the population is "unbanked" meaning they do not have a basic bank account and rely on things like check cashing services and money orders to get paid and pay bills.

[NewLiberty]

Rant: Since the US government is discouraging cash and other non-bank transactions and forcing people to use banks to make transactions more traceable, then banks should be treated more like utility companies and laws should be changed to disallow banks from closing a person's account without reason.

I'm not sure about the US, but in the UK at least I think we're (slowly) moving in that direction i.e. banking services as a basic right, not to be withheld without good reason.  We have a financial ombudsman service that can help and the courts are always an option.

The US is moving in the opposite direction. An increasing percentage of the population is "unbanked" meaning they do not have a basic bank account and rely on things like check cashing services and money orders to get paid and pay bills.

History's long arc tells a different story.
Once upon a time, payrolls were done in cash.
Make no mistake, despite the increasing number of unbanked, the US is very anti cash at the policy level.
That this increases costs for the unbanked also increases the need for things like bitcoin.

[EternalWingsofGod]

Bankers are scarred of the things they don't understand. They can just close an account without any explanation and bitcoin is a good reason as any for them.

True enough, although it seems unfair that they closed his sisters account for his transaction of all things
It seems communist in the sense that your forced to use X Bank to do X transaction and cannot use alternatives.