Editor's note: This brief was summarised by The Property AI Team from a report by Guardian Property. Read the original article for full details.
Revolut Account Freeze Leaves £37,000 House Deposit Restricted
A Revolut customer's account was frozen in what the firm calls a "routine security review", restricting access to a £37,000 house deposit held in a joint savings account. The account was reinstated nearly three weeks after being suspended, and the customer was offered £175 as a goodwill gesture.
According to the report, the customer's wife's Revolut account was frozen over a week before the letter was written, with nothing requested from her — no documents, source of funds, or ID. As a result, the £37,000 house deposit in a joint savings account was also restricted. The couple were approaching completion of their property purchase and had given notice on their rental home. Direct debits were bouncing and they were concerned about their credit records. At one point, Revolut also restricted the customer's personal account, leaving them effectively with no access to any money.
The customer reported being given deadlines for the restrictions to be lifted which were missed, and said call centre staff, when they could get through, had little ability to find out what was happening or make anything happen.
Banks have legal powers under anti-money-laundering regulations to freeze accounts if a sudden windfall, overseas payment or unusual activity raises concerns. They are not required to warn customers or explain if they suspect foul play, although customers can complain to the Financial Ombudsman Service if they believe a bank acted unfairly. The report states there is no suggestion foul play was suspected in this case, and things progressed swiftly after the Guardian got involved.
Revolut said regulatory constraints prevented it explaining, and stated: "We're sorry our review process took longer than usual, and our communication didn't reach its usual standards, particularly given the inconvenience during an important life moment."
For letting agents and inventory clerks, the case shows how frozen transaction accounts can disrupt deposit transfers and completion timings, and why tenancy and purchase funds should not rely on a single account.
Source: Guardian Property