Community centre rocked by bank account closure

VOLUNTEERS running a popular community centre in Springhead were left without banking facilities when their account was suddenly closed.

The venue is widely used by the community for a range of activities – including art classes, dance groups, table tennis, pottery and a playgroup.

But those in charge at the centre on Ashes Lane were forced to ask users to pay in cash, otherwise they say there would have been no money to pay essential bills.

Barclays has apologised for the inconvenience and says it has reopened the account and awarded £350 as ‘a gesture of goodwill’.

But Barbara Beeley, Chair of the Springhead Community Centre, claims the bank gave no warning the account would be shut down.

“We only found out the account had been closed because our treasurer was checking on payments,” she said.

“He phoned up the bank to find out what was happening, and they told him that the account had been closed and that a cheque for the amount in the accounts would be sent.

“Instead they have sent us a cheque for the balance – but as a result of Barclays closing the account, we don’t have anywhere to put the cheque when it finally arrives.”

The Springhead Community Association took over the running of the building in 2007 when it was the first community asset in the borough to be transferred to a community group.

It has been run successfully ever since by a group of local volunteers, who keep it going come rain or shine.

Barbara is calling for changes to be made so that banks must provide customers with reasons for closing an account and an opportunity for appeals. A petition to this effect was signed by more than 6,000 people.

“I’ve read about so many other groups who have had the same experience that it makes me think that the law needs to be changed,” Barbara said.

“Banks shouldn’t be able to close the account like this without giving us a reason which we can contest – or in this case even telling us they were doing it.

“It is an absolute nightmare, reflects badly on us and yet it is a situation not of our making. After our experience, I can understand the damage that this can cause to other volunteer groups.”

Barclays has admitted that, in the case of Springhead Community Centre, it could have done more to help the centre keep its account information updated.

After conducting a review, the bank says it will reopen the account and has given the centre £350 as ‘a gesture of goodwill’.

A spokesperson for Barclays said: “As part of our ongoing responsibility to help prevent financial crime, and to meet our regulatory obligations, we are required to keep up to date information regarding our customers’ accounts.

“We write out to customers asking them to supply us with some important information relating to their account.

“In cases where we do not receive a response with up to date account information, we are required to proceed with closing the account, so it is very important that account holders respond to these requests from their bank.

“Following a further review of this case, we accept that, on this occasion, more could have been done to help our customer through the process and as a result we have agreed to reopen the account.

“We’d like to apologise for the inconvenience and as a gesture of goodwill we have provided the customer with £350 to acknowledge any stress and disruption caused.”