The decision has forced trustees and beneficiaries to seek alternatives, often amid significant distress. Customers have criticised the lack of timely communication and support during the process, highlighting the impact on some of the most vulnerable members of society.
Nationwide : Sudden Closure of Trust Accounts Raises Concerns
Nationwide’s announcement to phase out trust accounts has left many users grappling with uncertainty. The building society began informing trustees in September that their accounts would close by December 23, but some customers have reported being unable to access funds even before the deadline.
James Trotman, a customer, shared his struggles after £28,000 in his disabled son’s account was frozen unexpectedly. “We were informed in September that the account would have to close by 23 December as Nationwide was ceasing to offer the service. When we tried to withdraw the funds we were told that all trust accounts had been blocked as they had to be re-verified before they were closed. I provided all the requested information, but a month later we were still unable to access the money.” he explained. This financial disruption led him to cancel plans for his son’s Christmas celebrations.
Another affected trustee described how the closure impacted her disabled brother’s account, leaving her unable to replace a broken laptop essential for his daily needs. “Nationwide had written to say it intended to close this account and required the original trust document and the HMRC registration. Meanwhile, without warning, it put a security block on the account. We immediately took the required documents to the local branch.” she said.
Nationwide defended its actions, stating that security blocks were necessary while awaiting verification. “We apologise for the inconvenience that completing this process has caused. Where there is an ongoing need for a trust account, a new account will need to be opened elsewhere. We needed information from the customers prior to closing the account and a security block was placed on the account while this took place.” a spokesperson said.
Vulnerable Groups Face Limited Banking Options
The closure of trust accounts at Nationwide reflects a broader trend, as high street banks and building societies increasingly phase out similar services. These accounts, which allow trustees to manage finances for individuals who cannot do so independently, are critical for people with disabilities, those recovering from personal injuries, and their families.
Advocacy groups have expressed concern over the limited banking options now available to vulnerable individuals. The disappearance of trust accounts forces users to navigate complex systems to find alternative financial arrangements, often involving additional costs and administrative burdens.
Nationwide has advised customers with ongoing needs to open accounts elsewhere but has not provided direct support for this transition. Critics argue that the building society’s approach lacked sensitivity, leaving beneficiaries without adequate safeguards.
As trust accounts become increasingly rare, the onus is on financial institutions to ensure a smooth transition while protecting the interests of vulnerable users. For now, however, the closures have left many without the security they once relied on.
