proposal for financial reporting standard (frs). dealing with account operations and correspondence

8/10/2019 Proposal for Financial Reporting Standard (FRS). Dealing with Account Operations and Correspondence.

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Proposal for Financial Reporting Standard: Dealing with Account Operations and Correspondence.

Morganist Economics copyright October 2014 Peter J R Morgan. 1 | P a g e

Proposal for Financial Reporting Standard;

Dealing with Account Operations and

Correspondence.

Peter James Rhys Morgan.


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All rights reserved. no part of this book may be reproduced, stored in a

retrieval system or transmitted in any form or by any means, without the prior

written permission of the author, except in the case of brief quotations

embodied in critical articles or reviews.

Published in October 2014 by Morganist Economics.

Blog: morganisteconomics.blogspot.com

Copyright 2014 Peter James Rhys Morgan.


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Aims and Objectives of the Proposed Financial

Reporting Standard. Dealing with Account Operations

and Correspondence.Aims to;

-Set a detailed definition of the classification of an account and set the regulation by which they are

expected follow.

-Set a framework of documentation that helps the reduction and investigation of fraudulent activity

of accounts.

-Set detailed regulation for identification of account user's/holder's.

-Set detailed regulation for correspondence and the secure storage of documentation between the

account operator/provider and the account user/holder.

-Set detailed regulation for the contents of documentation for sufficient financial records and legal

protection for both account operator/provider and account user/holder.

-Set a functional procedure of how to close an account in writing within 30 days of the receipt of the

request by the account operator/provider.

Objectives are;

-To provide a framework of the correct procedure and mandatory requirements to perform identity

checks before the account is opened, closed or operated/used. Including the forms of identification

that are necessary to open, close or operate/use an account, such as Passport, Birth Certificate and

Utility Bill inspections. Making sure the person who is operating the account is who they claim to be.

Security requirements of both the account operator/provider and the account user/holder are to be

set and/or recommended.

-To provide appropriate correspondence and documentation for both the account operator/provider

and account user/holder to be able to fulfil financial and legal requirements regarding the operation

and use of the account. Including evidence of the opening, closing and functional activity(statements) of the account and the identity, address and other contact details of both the account

operator/provider and the account user/holder.

-To provide a framework of expected contents within documentation and correspondence to ensure

all necessary information is supplied by the account operator/provider to a standard that is usable

within a court of law. Making sure explanations of the expectations/requirements of both the

account operator/provider and the account user/holder are clear in the documentation, so that both

parties are aware of the responsibilities of operating the account.

-To provide a procedure of how to close an account, which has been proven difficult by manyaccount user's/holder's. This is will include the ability to close any account within 30 days of the


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request in writing, regardless of whether the account is operated at branches, online, telephone or

mail. If the account is operated at branches it should be made possible to close the account within

48hrs of the request assuming positive identification of the account user/holder is made.

-To provide a procedure of how to handle suspected fraudulent activity on the account by either the

account operator/provider, the account user/holder or another party. This includes details of the

requirement to correspond with the account user/holder when suspicion of fraudulent activity

occurs.

It is also required to provide a procedure of how to correspond with the account user/holder if the

account is frozen and to provide a procedure that the account user/holder has to follow if they

suspect either the account operator/provider or another party has committed illegal activity

regarding the account.


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Definition of an 'Account'.

An 'Account' is the holding and/or management of funds or financial assets by one entity that belong

to another entity or individual. If the account is one of credit or debt, such as credit cards or

gambling institutions, where the account provider is owed by another entity it is a 'Deficit Account'.Deficit accounts are considered accounts and are expected to follow the same operational and

correspondence regulations as non deficit accounts.

In terms of purchasing online, telephone or mail transactions. Any entity, organisation or business

who store your personal details with the intention of receiving payments or holding funds, even if

none have been taken, are considered an account provider and are expected to follow the same

operational and correspondence regulations as any other account.

Any form of regular payment where either, another entity holds your details or takes regular

payments from you, especially through direct debit is considered an account and are expected to

follow the same operational and correspondence regulations as any other account. Subscriptions

where personal information is stored or payments are made are also considered an account provider

and are expected to follow the same operational and correspondence regulations as any other

account.

Transactions with entities that do not hold or manage your funds, debts or that do not hold your

personal details are not considered accounts. However the provider of the payment method you

used to make the transaction with such as your debit/credit card, cheque book or online payment

system (i.e. PayPal) is considered an account provider and are expected to follow the same

operational and correspondence regulations as any other account.

Example of Accounts.

Banks accounts.

Investment funds.

Saving funds.

Telephone accounts.

Television subscriptions.

Credit card providers.

Online businesses (i.e. Amazon, Ebay).

Online payment systems (PayPal).

Mail based businesses (i.e. Catalogues).

Gambling institutions.

Legal Practitioners.


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Stockbroker accounts.

Utility provider accounts.

Insurance accounts.

Pension schemes.


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Requirements and Expectations. The

Operator/Provider of an account.

The Operator/Provider of an account must;

-When opening or closing an account follow the correct identification procedures. Items that prove

identity such as Passports, Birth Certificates, Identity Cards and other documentation such as bank

account statements or utility bills, that display the address of the account user/holder, must be

shown to and approved by the account operator/provider before the account can be opened or

closed.

By following the correct identification procedures identity theft and fraudulent activity can be

diminished. Failure to follow identification procedures could result in high levels of identity theft,

which the account operator/provider or the account user/holder could be held liable for.

-When opening an account send a 'Letter of Account Opening' to the account holder/user within 30

days of the account being opened, which starts when the initial deposit is made and the account

user's details are entered onto the operator's/provider's computer database or filing system. The

'Letter of Account Opening' must comply to the guidelines/standard set in this document.

This will prevent fraud through identity theft by stopping individuals opening accounts in other

individuals names, especially if the identity process by the account operator/provider is followed

correctly. By sending and keeping a record of the 'Letter of Account Opening' the account

operator/provider can prove it was the account user/holder who is responsible for the account if the

account falls into debt enabling the account operator/provider to claim the funds owed.

In short it holds the person responsible for opening the account liable for any debts incurred without

the excuse it was someone else incurring those debts fraudulently. This makes legal action against

the account user/holder more viable.

-Throughout the period the account is opened and even after the account is closed hold a record of

account activity, payments and withdrawals. Account activity must available to the account

user/holder at all times and statements must be provided every calendar month. If the user/holder

of the account receives electronic statements on a monthly basis a paper statement must be

provided once every three months in addition to the electronic statements.

If the data is stored electronically effective security software must be used to access the information

on the computer system, which only verified personnel should be allowed to use. The hardware

containing the electronic data must be held in secure surroundings and only made accessible by

verified personnel. If the data is stored in paper form the documents must be stored in a lockable

container within secure surroundings and only made accessible by verified personnel.

The account operator/provider should hold and retain a record of all statements to protect itself

against legal claims by the user/holder of the account and to prevent fraud by other parties. The

account operator/provider should hold these records even after the account has closed to provide


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Requirements and Expectations. The User/Holder of

an account.

The User/Holder of an account must;

-Provide evidence of their identification when opening, closing or operating the account or at the

request of the account operator/provider or legally permitted institution (i.e. the Inland Revenue,

legal practitioners etc).

By demanding identification from the account user/holder, the account operator/provider or legally

permitted institution (i.e. the Inland Revenue, legal practitioners etc) can reduce the risk of

fraudulent activity by determining the person they are interacting with is entitled to actively use the

account.

-Provide their address and other contact details so the account operator/provider can contact the

account user/holder. If account user's/holder's address changes they have to inform the

operator/provider of the account within 30 days of the new address.

By holding and maintaining the address and other contact details of the account user/holder the

account operator/provider can ensure their ability to communicate with the account user/holder is

possible. This makes it easier to inform the account user/holder of the status of the account and also

enables the account operator/provider to send statements to the account user/holder on a regular

basis.

Maintaining regular correspondence with the account operator/provider is only possible if theaccount user/holder gives details of a change in address within 30 days of the change. Claiming

debts owed to the account operator/provider also becomes easier as the known whereabouts of the

account user/holder are known, reducing the number of bad debts held by the account

operator/provider.

-Hold and retain a record of all letters, statements and documentation from the account

operator/provider to protect themselves against incorrect account operation or fraudulent activity.

It is recommended they keep a copy of all account correspondence even after the account has

closed for legal protection and accounting purposes.

The account user/holder must contact the account operator/provider and the relevant government

or legal department if loss or suspected theft of the documentation occurs.

By holding and maintaining a copy of all letters, statements and other documentation from the

account operator/provider the account user/holder can ensure they are protected against

accusations of fraudulent activity. The documentation from the account operator/provider,

assuming they have followed the criteria in this regulation, will supply strong legally effective

evidence in a court of law and provide information for the legal team of the account user/holder if

necessary.


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It is advisable the account user/holder stores the documentation from the account

operator/provider in a lockable compartment or device within secure premises to prevent

fraudulent activity on the account, which the account user/holder could be held liable for.

Loss of documentation could result in identity theft or the inability of the account user/holder to

defend themselves in court. In the case of loss or suspected theft of account documentation the

account user/holder must contact the account operator/provider and the relevant government or

legal department.


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The Letter of Account Opening.

Guidelines/Requirements.

Must Include.Identification of the Account Operator/Provider.

Registration number of the Company, Organisation or Charity that operates the account.

A statement clearly displaying it is the Letter of Account Opening.

The date the letter was written.

The Account Provider's address and contact details.

Customer's name and address.

Number of the account in question.

The date the account was opened.

The method used open the account.

The date and the amount of the initial payment, which was used to fund the account, if there was

one. Deficit accounts do not require an initial payment to open the account.

The date of Account Opening must be displayed and with a note telling the user it is the date ofAccount Opening.

Legal disclaimer's explaining the Fees, Interest, Charges and Payments the account user/holder is

liable/potentially liable for by having the account.

Legal disclaimer's explaining the Fees, Interest, Charges and Payments the account user/holder is

liable/potentially liable for by having an overdraft or lending facility on the account.

Legal disclaimer's explaining the Interest, Insurances and Benefits the account operator/provider is

liable/potentially liable for by running the account. With an explanation to the entitlement of the

account user/holder to these facilities.

A statement telling the user the account provider will store a copy of the letter, with a

recommendation that the user also stores a copy of the letter including an explanation of the

possible consequences of not doing so.

An explanation of the potential risk of fraud by not keeping a record of account documentation.

The address and details of the account underwriter and an explanation of the role of the account

underwriter. Stating it is possible to make a complaint to the account underwriter if the account is

not managed properly.


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The address and contact details of the financial ombudsman, with an explanation of the role of the

financial ombudsman in regards to improper management of the account and fraud.


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Letter of Account Opening Example.

XXXX Bank

Registration Number.

Bank/Account Provider's Address Customer's Address

Bank/Account Operator's Contact Details.

1st February 2015.

Letter of Account Opening.

Dear Customer

In regards to your newly opened account No. XXXXXXXX.

As requested on the 30th of January 2015 by yourself (name) at your local branch

(internet/telephone/letter), an account numbered XXXXXXXX has been opened enabling you to

make financial transactions with/using this institution. Security checks were made by the account

operator/provider, which although thorough could have proven ineffective.

If you have received this letter and not opened an account with this institution you must contact the

provider, financial ombudsmen or relevant legal institution to notify them of the possibility of fraud

or administrative error on the part of the account operator or provider.

The initial payment of 200.00 was made on 31st January 2015 to bring the account balance to

200.00.

As the account has now been opened you are liable for the following fees, interest, charges and

payments (xxxx), which amount to (xxxx). If you do not make the agreed payments by the date

required further charges may arise as a result. You may have legal action taken against you if you do

not repay the balance of the account if the account falls into deficit.

The account provides an overdraft or lending facility of (xxxx), which charges the following rate of

interest (xxxx) and/or other charges of (xxxx). If the overdraft or lending facility is exceeded the rateof interest and/or charge/charges will increase to (xxxx). You are also entitled to the following

interest on the account balance at a rate of (xxxx) along with the following

insurance/protection/benefit, which will continue unless the account operator/provider informs you

of changes to the operation and facilities of your account.

A copy of this letter will be retained by the account operator to provide evidence, if the need arises,

that the account was opened on the Date of Account Opening and that this letter was sent within 30

days of the account opening. Evidence of the initial Payment, the date it was made on and the

amount of the payment are also contained proving the account was opened on the stated date and

is now operating with a balance of 200.00.


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Letter of Account Opening Example. Justification.

Section 1; Authenticity.

XXXX Bank


Justification.

Letterheads are highly recommended as they provide authenticity to the organisation who sends the

letter. (Headed letters by registered companies, organisations and charities are held with more

consideration by legal practitioners and can act as better evidence if the case is taken to court).

Reference to the company's, organisation's or charity's registered number should also be stated as itcould help to prevent fraudulent letters being forged by the account user. It can also act as an

avenue for legal pursuit if fraudulent activity has occurred on the part of the account provider, which

may not be registered to provide an account by the relevant body thus acting illegally or even

fraudulently by operating the account. (By displaying registration numbers in official documentation

non registered organisations will be spotted).

Section 2; Contact Details and Correspondence Details.



(Date of writing). 1st February 2015.

Justification.

The address of both the account provider and the account user must be included to make

correspondence possible. Contact details of the account operator must also be displayed to enable

direct communication between both parties. The date the letter was sent should be included within

the letter to provide evidence the letter of account closure was sent within a reasonable time of the

action of closing the account. This helps to make sure the customer has a copy of the letter, as wellas the bank to legally protect them both.

Section 3; Agenda of Letter, Customer and Account Details.

Letter of Account Opening.

Dear Customer

In regards to your newly opened account No. XXXXXXXX.

As requested on the 30th of January 2015 by yourself (name) at your local branch

(internet/telephone/letter), an account numbered XXXXXXXX has been opened enabling you to


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make financial transactions with/using this institution. Security checks were made by the account

operator/provider, which although thorough could have proven ineffective.

Justification.

This section states the date the account was opened, who it was opened by and where it wasopened. Which provides evidence of the existence of the account and who the user/holder is,

enabling the them to use the letter for legal purposes in a court of law, if fraudulent activity is

suspected. The number of the account is included with a statement informing the account

user/holder they can now actively use the account.

Section 4; Identification and Procedure of Fraudulent Account Opening.

If you have received this letter and not opened an account with this institution you must contact the

provider, financial ombudsmen or relevant legal institution to notify them of the possibility of fraud

or administrative error on the part of the account operator or provider.

Justification.

This section states that security checks were made before opening the account and for the recipient

of the letter to contact the account provider, financial ombudsmen or relevant legal institution if

they did not open the account, as it could prove to be a fraudulent account opening.

Section 5; Initial Payment Details.

The initial payment of 200.00 was made on 31st January 2015 to bring the account balance to

200.00.

Justification.

This section provides evidence the initial payment on the account has been made, including the date

it was made on and the amount of the payment, which was required to open and activate the

account. Some accounts can be opened without a payment, when the account is based on credit or

debt. This form of account is known as a 'Deficit Account', when a 'Deficit Account' is opened the

balance should be Zero (0).

Section 6; Information on Fees, Interest, Charges and other Payments the account user/holder may

be liable for and the Interest/Insurances/Protections/Benefits the account provides.

As the account has now been opened you are liable for the following fees, interest, charges and

payments (xxxx), which amount to (xxxx). If you do not make the agreed payments by the date

required further charges may arise as a result. You may have legal action taken against you if you do

not repay the balance of the account if the account falls into deficit.

Justification.

This section informs the account user/holder what fees, interest, charges and payments that they

will encounter by using/holding the account and the legal consequences of not making payments. It

is necessary to include this information in the 'Letter of Opening' so the account operator/provider


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can prove the account user/holder was informed of the financial cost that operating the account

carries.

The account provides an overdraft or lending facility of (xxxx), which charges the following rate of

interest (xxxx) and/or other charges of (xxxx). If the overdraft or lending facility is exceeded the rate

of interest and/or charge/charges will increase to (xxxx). You are also entitled to the following

interest on the account balance at a rate of (xxxx) along with the following

insurance/protection/benefit, which will continue unless the account operator/provider informs you

of changes to the operation and facilities of your account.

Justification.

This section informs the account user/holder of the overdraft/lending facilities of the account and

explains the interest or other charges that it carries. It also informs the account user/holder of the

insurance/protection/benefit the account offers.

It is necessary to inform the account user/holder of this information in the 'Letter of Account

Opening' so they are aware of the full facilities the account offers. If the account operator/provider

does not allow the account user/holder to claim these facilities the 'Letter of Account Opening' can

be used as evidence in a court of law that they are entitled to the stated facilities.


that the account was opened on the Date of Account Opening and that this letter was sent within 30

days of the account opening. Evidence of the initial Payment, the date it was made on and the

amount of the payment are also contained proving the account was opened on the stated date and

is now operating with a balance of 200.00.

Justification.

This section informs the account user that a copy of the letter will be held by the account operator

and that the correct action was taken to open the account. It also informs the user the account was

opened on the Date of Account Opening, the account is active and operating with a balance 200.00.

It is recommended to retained a copy of this letter to provide evidence of the opening of the

account, which will protect you legally if the account operator/provider or another party is involved

in fraudulent activity involving the account. It will also provide legal evidence to the entitlement of

the account user/holder of any insurances/protections/benefits the account offers if this comes intoquestion.

Justification.

This section informs the account user of the legal importance of the letter and that a copy of the

letter should be held by them to provide evidence of account opening in case legal action is taken

against them. It also explains some of the risks that not having a copy of the letter could hold for the

user.

Section 7; Procedure for complaint or suspicion of fraudulent activity regarding the account.

Complain to the Underwriter.


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The provider of this account has been underwritten by XXXX who may also be held responsible if

your account has not been administered by the correct legal standard. You could also contact the

account provider's underwriter XXXX if you are unsatisfied with the operation of your account or

believe fraudulent activity to have been performed.

Address of account provider's underwriter.

Complain to the Financial Ombudsman.

If you feel the account has not been operated correctly according to the required legal standard or

you suspect any illegal activity on your account on behalf of the operator, provider or underwriter

you can contact the financial ombudsman through the following address and details.

The Financial Ombudsman Service

Exchange Tower

London E14 9SR

[email protected]

020 7964 1000 (switchboard)

+44 20 7964 1000 (for calls from outside the UK)

020 7964 1001 (main fax)

Justification.

Provides the information required for the account user to complain or seek legal action against the

account operator, provider or underwriter.

Section 8; Account Operator Sign Off.

Signature of the Account Operator and the Date the letter was signed.

Justification.

Provides authenticity and evidence that the account operator closed the account, rather than

someone who was not permitted. It also acts as a reference if the account user wishes to complain

about the account operator to the account provider, underwriter or ombudsman.


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The Letter of Account Closure.

Guidelines/Requirements.

Must Include.Identification of the Account Operator/Provider.

Registration number of the Company, Organisation or Charity that operates the account.

A statement clearly displaying it is the Letter of Account Closure.

The date the letter was written.

The Account Provider's address and contact details.

Customer's name and address.

Number of the account in question.

The date the request of account closure was made.

The method used to request the closure of the account.

The reason why the account was closed.

The date and the amount of the final payment/withdrawal, which took the balance to Zero (0) and a

statement informing the user the account balance it now Zero (0).

The date of Account Closure must be displayed and with a note telling the user it is the date of

Account Closure.

Legal disclaimer's explaining the Account is no longer operable past the date of Account Closure and

that the account was closed within 30 days of the request to close the account.

A statement that no further fees, charges, interest or payments can be made by either party against

the other after the date of Account Closure.

A statement telling the user the account provider will store a copy of the letter, with arecommendation that the user also stores a copy of the letter including an explanation of the

possible consequences of not doing so.

An explanation of the potential risk of fraud by not keeping a record of account documentation.

The address and details of the account underwriter and an explanation of the role of the account

underwriter. Stating it is possible to make a complaint to the account underwriter if the account is

not managed properly.

The address and contact details of the financial ombudsman, with an explanation of the role of the

financial ombudsman in regards to improper management of the account and fraud.


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Letter of Account Closure Example.

XXXX BankRegistration Number.


Bank/Account Provider's Contact Details.

1st February 2015.

Letter of Account Closure.

Dear Customer

In regards to account No. XXXXXXXX.

As requested on the 30th of January 2015 by yourself/account operator/account provider at your

local branch (internet/telephone/letter), your account No. XXXXXXXX has been closed due to non

activity/request/legal obligation.

The final payment/withdrawal of 200.00 was made on 31st January 2015 to bring the account

balance to Zero.

No further operations will be performed by the account operator/provider and further activity by

yourself regarding the account is no longer possible from this date onwards 1st February 2015,

which is the Date of Account Closure.

Date of the Request of Account Closure. 30th January 2015.

Date of Final Payment/Withdrawal on Account. 31st January 2015.

Final Payment/Withdrawal on Account. Payment/Withdrawal. +/- 200.00.

Date of Account Closure. 1st February 2015.

Balance of the account on Date of Account Closure. 0.00.

No further charges, interest or payments can be claimed by the account operator, provider or

underwriters that may have financial interests in the account provider, after the Date of Account

Closure.

No further interest, insurances or other payments/benefits can be claimed by yourself regarding the

account against the account operator, provider or underwriters that may have financial interests in

the account provider, after the Date of Account Closure.


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that the account was closed on the Date of Account Closure, which was within 30 days from the Date

of the Request of Account Closure. Evidence of the final Payment/Withdrawal bringing the account

balance to Zero (0) is also contained proving no further payment is required by either party from the

Date of Account Closure onward.

It is recommended to retained a copy of this letter for your own records to prevent further fees,

interest, charges, payment demands or the possibility of fraud on the account No. XXXXXXXX, which

you could be held liable for if you do not possess a copy of this letter as evidence the account has

been closed.




account provider's underwriter XXXX if you are unsatisfied with the operation of your account orbelieve fraudulent activity to have been performed.






The Financial Ombudsman ServiceExchange Tower

London E14 9SR

[email protected]



020 7964 1001 (main fax)



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Letter of Account Closure Example. Justification.

Section 1; Authenticity.

XXXX Bank


Justification.

Letterheads are highly recommended as they provide authenticity to the organisation who sends the

letter. (Headed letters by registered companies, organisations and charities are held with more

consideration by legal practitioners and can act as better evidence if the case is taken to court).

Reference to the company's, organisation's or charity's registered number should also be stated as itcould help to prevent fraudulent letters being forged by the account user. It can also act as an

avenue for legal pursuit if fraudulent activity has occurred on the part of the account provider, which

may not be registered to provide an account by the relevant body thus acting illegally or even

fraudulently by operating the account. (By displaying registration numbers in official documentation

non registered organisations will be spotted).

Section 2; Contact Details and Correspondence Details.



(Date of writing). 1st February 2015.

Justification.

The address of both the account provider and the account user must be included to make

correspondence possible. Contact details of the account operator must also be displayed to enable

direct communication between both parties. The date the letter was sent should be included within

the letter to provide evidence the letter of account closure was sent within a reasonable time of the

action of closing the account. This helps to make sure the customer has a copy of the letter, as wellas the bank to legally protect them both.

Section3; Agenda of Letter, Customer and Account Details.

Letter of Account Closure.

Dear Customer

In regards to account No. XXXXXXXX.


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As requested on the 30th of January 2015 by yourself/account operator/account provider at your

local branch (internet/telephone/letter), your account No. XXXXXXXX has been closed due to non

activity/request/legal obligation.

Justification.

This section provides evidence a request to close the account was made and the method used to do

so. It also states the specific account number and who requested the account closure. It is important

to provide evidence that attempts to close the account were made so the account provider cannot

keep the account going against the will of the account user, which could result in payment demands,

interest and charges that the customer did not agree to or tried to avoid by closing the account.

By providing a Date of Request of Account Closure the account operator/provider can prove the

action of closure of the account has been made within the period required. If the requests of

account closure have not been met it could be classed as professional failing on behalf of the

account operator or even fraudulent activity depending on the type of account.

Section 4; Final Payment Details.

The final payment/withdrawal of 200.00 was made on 31st January 2015 to bring the account

balance to Zero.

Justification.

This section provides evidence the final payment/withdrawal on the account has been made,

including the date it was made on and the amount of the payment/withdrawal which was required

to bring the account balance to zero (0). It is important to state the account balance has been madezero (0) so the letter acts as evidence that neither party is in debt to the other. Closure of the

account by both parties can only be fully made possible when the account balance is zero (0).

Section 5; Date of Account Closure.

No further operations will be performed by the account operator/provider and further activity by

yourself regarding the account is no longer possible from this date onwards 1st February 2015,

which is the Date of Account Closure.

Justification.

This section states the date of account closure, which may be needed as evidence to stop legal

claims by both parties. It also states neither party can use the account from the stated date of

account closure onwards, informing the user the account is no longer usable by themselves or by

someone else who may be acting fraudulently.

Section 6; Financial Details and Dates of Account Closure.

Date of the Request of Account Closure. 30th January 2015.

Date of Final Payment/Withdrawal on Account. 31st January 2015.

Final Payment/Withdrawal on Account. Payment/Withdrawal. +/- 200.00.


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Date of Account Closure. 1st February 2015.

Balance of the account on Date of Account Closure. 0.00.

Justification.

This section is a quick reference and bolder statement of the key information to the account. It may

not be required as the information is provided elsewhere in the letter but the it is recommended to

be included in the letter to make the key information clearer to the user.

Section 7; Legal Details and Disclaimers of Account Closure.

No further charges, interest or payments can be claimed by the account operator, provider or

underwriters that may have financial interests in the account provider, after the Date of Account

Closure.

Justification.

This section states that from the date of account closure the party/organisation responsible for

operating the account and other parties/organisations linked to the account cannot make further

payment demand against the user as the account is closed.

No further interest, insurances or other payments/benefits can be claimed by yourself regarding the

account against the account operator, provider or underwriters that may have financial interests in

the account provider, after the Date of Account Closure.

Justification.

This section states that from the date of account closure the user cannot claim payments, benefits or

insurance from the account operator or linked parties/organisation as the account has been closed.


that the account was closed on the Date of Account Closure, which was within 30 days from the Date

of the Request of Account Closure. Evidence of the final Payment/Withdrawal bringing the account

balance to Zero (0) is also contained proving no further payment is required by either party from the

Date of Account Closure onward.

Justification.

This section informs the account user that a copy of the letter will be held by the account operator

and that the correct action was taken to close the account. It also informs the user no more

payments are required or will be received as the balance is at zero (0).

It is recommended to retained a copy of this letter for your own records to prevent further fees,

interest, charges, payment demands or the possibility of fraud on the account No. XXXXXXXX, which

you could be held liable for if you do not possess a copy of this letter as evidence the account has

been closed.

Justification.


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This section informs the account user of the legal importance of the letter and that a copy of the

letter should be held by them to provide evidence of account closure in case legal action is taken

against them. It also explains some of the risks that not having a copy of the letter could hold for the

user.

Section 8; Procedure for complaint or suspicion of fraudulent activity regarding the account.




account provider's underwriter XXXX if you are unsatisfied with the operation of your account or

believe fraudulent activity to have been performed.






The Financial Ombudsman Service

Exchange Tower

London E14 9SR

[email protected]



020 7964 1001 (main fax)

Justification.

Provides the information required for the account user to complain or seek legal action against the

account operator, provider or underwriter.

Section 9; Account Operator Sign Off.


Justification.

Provides authenticity and evidence that the account operator closed the account, rather than

someone who was not permitted. It also acts as a reference if the account user wishes to complain

about the account operator to the account provider, underwriter or ombudsman.

proposal for financial reporting standard (frs). dealing with account operations and correspondence

Documents