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bank problems

trading as name same as another company

My client has a company, which trades under another name.  So eg it is ABC Limited trading as XYZ .

The bank say they can no longer accept cheques made out to XYZ as there is another limited company called XYZ Limited.  My client is well aware of this because he happens to own XYZ Limited, and it is dormant.  He has explained this to the bank but they are adamant that all cheques must be made out to ABC Limited in future.

Not convinced it works, but he set things up like this to give himself privacy - so if people search on XYZ they won't see his trading accounts - I am aware - and have told him - that is is not too difficult to track back to ABC Limited (especially as he has to disclose this on letterheads etc) but this is how he likes it...

Has anyone else come across something similar and how has it been dealt with?  Was there a work around?

 

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04th Jan 2019 09:59

Not a lot of sympathy I'm afraid. He seems to want the protection afforded by limited liability but not the transparency as regards accounts and just as important consumer protection.

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to thomas34
04th Jan 2019 10:03

Companies have been using trading as names for longer than any of us have been in practice without issue as far as I am aware. So what has changed? He has the real company name on all of his headed letters and websites etc so nothing is being hidden (although he may like to think it is...)

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to snickersinatwix
04th Jan 2019 11:10

snickersinatwix wrote:

So what has changed?

The all-pervading whiff of money laundering. Can't you smell it?

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By DJKL
04th Jan 2019 10:19

Amazed the bank noticed- whilst not that prevalent these days ,as we get fewer and fewer cheques , over the years we have paid in cheques addressed to myriad entities- tenants have in error paid us in name of our agents or in name of a different group entity. etc Bank never notices/blinks.

For my next trick I have a number of over six month old cheques payable to my own company ( I know,not very good record keeping) which I found over Christmas holidays and will just lodge and see what happens, three are for £13 but there is a £50 one and a £100 one as well; I expect bank will process these without blinking.

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04th Jan 2019 10:32

Change the name of XYZ Ltd

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to bernard michael
04th Jan 2019 10:53

I have suggested this....

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04th Jan 2019 11:47

Bank the XYZ cheques in XYZ Ltd and transfer the money to ABC Ltd.

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04th Jan 2019 13:36

But then it wouldn't be dormant

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to bernard michael
04th Jan 2019 13:46

bernard michael wrote:

But then it wouldn't be dormant

Oh, come, come !!

Just submit FRS 105 accounts. How much longer can it take ???

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