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Stage 3 cancer sufferer and local postmaster treated like 'criminal' as bank account closed for 'no reason'
12 May 2025, 07:31 | Updated: 12 May 2025, 15:20
Prakash Patel is currently undergoing chemotherapy for follicular lymphoma cancer and unexpectedly had his Lloyds bank account closed.
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LBC can reveal that a stage 3 cancer sufferer and local postmaster in Bedfordshire has had his bank account closed down “for no reason”, and is demanding answers from Lloyds Bank.
Prakash Patel, 64, who lives in the small Bedfordshire village of Caddington, says the way he has been treated is “disgusting” and that the ordeal came as a “complete shock”.
Mr Patel, a first-generation immigrant who runs the village’s local post office as well as a local convenience store, is currently battling follicular lymphoma and undergoing regular cycles of chemotherapy.
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He told LBC, “I started chemotherapy a year and a half ago, it is extremely painful”.
“I have stage 3 cancer. I’m going through enough worry and anxiety in my life as it is, I really don’t need more stress at this stage”.
“It’s already impacting my life, if suddenly your bank account closes down, you’ve used it for so many years and you rely on it”.
He was contacted via letter by Lloyds who informed him that his account would be closed, without explanation, despite having banked with them for over 30 years.
“I wrote to them to express my concern, my anxiety, and anger that they shouldn’t be treating a customer like this, without any sort of explanation and demanded that they tell me at least the reasons behind it… it’s disgusting”, the small business owner told LBC.
After demanding answers, he was sent a letter from Lloyds Bank, seen by LBC, informing him that “closing your account isn't a decision we take lightly”, they added “we recognise you've been a loyal customer, and we've valued you as a customer", but maintained that they "can't disclose the reasons for our decision".
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In response Mr Patel, who claims he has never missed a payment and told us he’s not aware of any reason or wrongdoing, is appealing to the Financial Ombudsman Service, and his local MP is now supporting him.
He tells LBC that he's been made to feel as though he “robbed a bank or shot somebody”.
Rachel Hopkins, the Labour MP for Luton South and South Bedfordshire, is now investigating.
She told LBC “I appreciate Mr. Patel’s concerns regarding Lloyds Bank decision to close his account. My office is supporting Mr Patel with this issue and will be contacting Lloyds Bank on his behalf”. It is also understood she will contact the bank in question.
The postmaster also has further chemotherapy planned in the coming days. The Follicular Lymphoma Foundation told LBC that living with the diease can be “incredibly challenging—not just physically, but emotionally and mentally. It’s a chronic cancer that often requires ongoing treatment and monitoring”.
The charity added it was “vital for patients to feel supported, heard, and stable as they navigate this difficult journey.”
LBC understands the matter is being looked into by the Financial Ombudsman Service. A spokesperson added that "Account closures should always be carried out in line with the bank’s terms and conditions, and its wider obligations. If consumers are concerned that they haven't been treated fairly, they should contact [us]”.
In response a spokesperson for Lloyds Bank said that the bank was “unable to comment on individual cases” and “reserves the right to issue a customer with notice to close without explanation.”
Indeed LBC’s consumer expert Dean Dunham confirmed that this was “very common”.
He explained that banks cannot go into detail over account closures if they suspect “fraudulent or other criminal activity” and urged people to contact the Financial Ombudsman who will assess if the decision has been “unfair and unreasonable”.
Dean Dunham also said that the Financial Ombudsman Service “are receiving currently around 100 complaints per week about frozen or closed bank accounts”
“It’s become this common mainly because banks are so concerned about money laundering, fraud and criminal activity and so are entitled to take these steps”.
The role of banks has been heavily scrutinised in recent years, after Reform UK leader said he was ‘debanked’ by Coutts, and LBC revealed last month of one customer who was prevented from withdrawing £2,500 from his own account.
LBC understands that the bank has supported Mr Patel in changing provider.
