A South African customer of Lloyds Bank has reported difficulties retrieving nearly £33,000 after his long-standing account was closed without prior effective communication. The individual, who had maintained the account for 49 years, said the bank abruptly shut the account in December 2025, citing his failure to respond to an encrypted email sent several months earlier requesting verification of his address.

According to the customer, residing in South Africa complicated communication, particularly since he was unable to access the encrypted message sent in September 2025. He described that the bank should have suspended the account pending address confirmation rather than closing it outright. Following the closure, he opened a new account with NatWest International but encountered challenges in obtaining a transfer of funds totaling £32,939, which came primarily from rental income on a UK property he inherited and used to pay UK-related expenses such as taxes and maintenance.

The customer confirmed his compliance with all required regulatory obligations, including the submission of tax returns. He also said he provided Lloyds with multiple notarized documents upon the bank’s repeated requests but noted there had been no progress in releasing the funds.

Lloyds Bank responded by explaining that the encrypted email was intended to protect personal information while seeking important details needed to continue providing financial services. The bank indicated that the account closure was related to ongoing investigations into potential fraud or suspicious activity. It acknowledged attempts to communicate through the customer’s registered address, including notification of the account closure.

Following intervention on behalf of the client, Lloyds transferred the withheld amount to his NatWest account, along with £89.16 in interest. The bank also issued a payment of £300 in compensation for delays in resolving the matter, admitting the service could have been expedited.

The customer expressed shock at the bank’s handling of a nearly five-decade relationship but welcomed the eventual resolution, crediting external assistance for facilitating the transfer.

Industry guidance suggests that when a bank account is closed with funds remaining, customers should promptly request the return of balances via cheque or electronic transfer. Should disputes arise, complainants have recourse to lodge formal complaints with the financial institution and, if necessary, escalate to the UK Financial Ombudsman Service, which handles cases involving UK-based financial firms regardless of the complainant’s location.