What Should I Do If My Bank Account Is Blocked Due to a Deposit and I Don’t Have Proof of Funds? (UK)

Question from tej, What Should I Do If My Bank Account Is Blocked Due to a Deposit and I Don’t Have Proof of Funds? (UK)

Answer from AI:

Understanding the Situation

In the UK, banks are required by law to monitor transactions to prevent money laundering and other illegal activities. This is in accordance with the Money Laundering Regulations 2017. If a bank suspects that a transaction is suspicious, they may block the account and ask for proof of funds. This is to ensure that the money is from a legitimate source.

Steps to Take

If you find yourself in this situation, here are some general steps you might consider:

1. Communicate with the Bank: The first step is to contact your bank and explain the situation. You can tell them that the money was a loan from a friend to pay for rent and deposit. It’s important to be honest and provide as much information as possible.
2. Provide Evidence: While you may not have a formal proof of funds document, any evidence that supports your claim can be helpful. This could include text messages or emails discussing the loan, a written agreement between you and your friend, or withdrawal slips from your friend’s bank account.
3. Involve Your Friend: If your friend is willing, they could contact their bank and ask for a statement showing the withdrawal of the £800. This could serve as proof that the money came from a legitimate source.
4. Seek Legal Advice: If the bank continues to hold your funds despite your efforts, it may be beneficial to consult with a legal professional. They can provide advice tailored to your specific situation and may be able to help you navigate the process.

Legal Assistance

Remember, while this information provides a general guideline, it’s always best to consult with a legal professional for advice tailored to your specific situation. The Citizens Advice Bureau provides free, confidential advice and can help you understand your rights and options. You can find more information on their website.

Preventive Measures

To avoid such situations in the future, it’s a good idea to keep a record of all large transactions and loans. This could be in the form of a written agreement, bank statements, or even emails and text messages discussing the transaction. This can provide proof of the source of funds if required by the bank.

Please note that this information is intended to provide a general understanding of the law. It is not intended to provide legal advice. Always consult with a legal professional for advice tailored to your specific circumstances.