YORKSHIRE — A parish treasurer has described months of frustration after Lloyds Bank closed a church account but did not promptly move the remaining balance, leaving the congregation waiting for about £5,500. The church, which serves a village of just 60 houses, says the delay forced it to borrow money from parishioners to pay for essential repairs and an electricity bill.
The treasurer said Lloyds told him last November that the account would be closed and that a new business account should be opened instead. But a problem with the bank’s online system prevented him, and even branch staff, from completing the process. He later opened an account with another bank in March, but the funds still were not transferred.
Repeated promises from the bank did not produce a transfer for months
According to the treasurer, he was repeatedly told to visit his local branch and was also repeatedly assured that the money would arrive within weeks. At one stage, he was told that Lloyds had lost the identity verification documents linked to the case and that it had been pushed to the bottom of the queue.
The delays left a small congregation facing a significant cash shortfall. With only 10 people in the parish and limited reserves, the church had to rely on borrowing from members rather than waiting for the bank transfer to come through. The case highlights the problems that can arise when a closed account still holds customer money and the transfer process stalls.
Complaint triggered apology, goodwill payment and interest offer from Lloyds
After the issue was raised more publicly, Lloyds sent what was described as a mea culpa, acknowledging poor and inconsistent communications. The bank offered £400 in goodwill compensation, along with £96 to cover lost interest, but the letter did not mention that the church’s money was still missing.
The omission led to another round of contact with the bank, after which Lloyds sent a further apology. The funds were eventually transferred more than four months after the account had been closed, bringing an end to a delay that had already caused practical financial problems for the parish.
Lloyds says it should have handled the customer’s case better
A Lloyds spokesperson said: “We’re sorry the customer had such a difficult experience. We should have handled things better.” The bank has not given a further explanation for why the transfer took so long or why the account closure process went off track.
The case serves as a reminder for charities, churches and other small organisations that depend on prompt access to funds to keep day-to-day services running. For this parish, the missing balance was not a trivial sum but money needed for basic upkeep and bills, and the eventual transfer came only after prolonged chasing.
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