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Lloyds Bank apologises after parish church funds held for months

Lloyds Bank has apologised after a parish church treasurer faced months of delays in transferring nearly £5,500 from a closed account. The funds were eventually transferred more than four months after the account closure.

  • A parish church treasurer was informed by Lloyds Bank last November that their church account would be closed.
  • The church was owed nearly £5,500, which was delayed for over four months.
  • Lloyds Bank offered £400 in goodwill and £96 in lost interest, stating, “We should have handled things better.”

A parish church treasurer in Yorkshire faced significant delays in accessing nearly £5,500 from a closed Lloyds Bank account, leading to the church borrowing from parishioners for essential repairs and electricity bills.

Last November, Lloyds Bank informed the treasurer that the church account would be closed, suggesting a new business account. However, a system fault prevented this online, and local branch staff were also unable to assist.

Following a branch staff suggestion, a new account was opened with a different bank in early March. Despite repeated assurances that the money would arrive within weeks, the funds remained inaccessible. The treasurer was reportedly told at one point that identity verification documents had been lost, placing the case at the bottom of the pile.

The funds were eventually transferred more than four months after the account was closed. Lloyds Bank offered £400 in goodwill and £96 in lost interest, with a spokesperson stating, “We’re sorry the customer had such a difficult experience. We should have handled things better.”

Why this matters: The delay in accessing funds caused financial strain for the parish church, forcing them to borrow money for essential expenses.

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