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Continuing Transactions After Bank Liquidation
Asif Aziz
Posted: 15 January 2018 09:19:02(UTC)
#1

Joined: 14/01/2018(UTC)
Posts: 1

Hi all,


Hopefully someone can help..


I understand from a friend at a bank that banks will usually sent the FSCS a single customer file containing all the information for the regulators on customers who are due compensation & how much this will be. Once this file has been received by the regulators, it will take them about 7 days to send a cheque to the depositor for their compensation amount


My question is, if a bank was to go through liquidation, when would they shut down all of their day to day processes (i.e. continuing to process customer bank transactions)?


Would this be stopped AS SOON AS they have sent their customer file to the regulators OR do they shut down all processes only AFTER the regulators have physically dispatched cheques to their customers?


My concern is if its the former, then I will need to make immediate arrangements to open another bank account at another bank to facilitate day to day transactions on my account (paying in salary). Also, if I get a compensation cheque, this will need to be banked at another bank account.


Hope this makes sense.


Thanks
Az
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