How to get this investigated?

Concerns regarding a client potentially using my practice name/letter head to gain credit.

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A new client asked me to write a letter to his bank to confirm his trading address. Which I did. A few days later he came back to me claiming the bank wanted me to write them the same letter but addressed to him. Which I did. 

The client then contacted me claiming that the bank will not let him open a business account (sole trader) without 'checking me out' and knowing who regulates me etc. I found this odd as I've never heard of a bank refuse a customer a bank account based on who they choose as an accountant. But he was insistent that they wouldn't. I was, I suppose, a little awkward in my response due to the request not sounding right to me, and I informd him that this information was available in our engagement document but that I would like to know why his banking adviser felt it relevent. He was quite insistent and used the words 'they will only accept certain regulatory bodies' ... for what though? 

I happen to know the business manager of that bank so put this to him (without names) and he claimed that the only reason the bank would require my regulatory info would be if I was signing something off for him (ie - accountant certificate). He suggested I try and find out the name of the person who had requested this. Which I did. I then asked them (in a generalised way) in what instance they would need to use/check out/accept an accountants quals and also would this have any effect on opening a bank account and she claimed the same as the manager, that this would have no bearing on them opening an account but would in terms of gaining credit when an accountant cert or similar had been supplied. 

I did go back to the client and pretty much said that what he was telling me made no sense, I then recieved an email from him not 5 mins later saying that all has now been resolved and the account is open. 

This is playing on my mind though. It could well be that the banker made an error in requesting info and what's required. But it could be just as likely that the client has used my practice info to gain credit without my knowledge. How could I find this out though? I can't walk into the bank and hand over his name and ask them to check ... can I ? 

Replies (4)

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Oaklea
By Chris.Mann
31st Oct 2018 09:52

If something has a strange "smell", if often is. Strange, that is.
Unless proved otherwise, I'd go with your gut instinct.
I'd also wager a guess that, at some point, very shortly, your instructions will be terminated. Why not beat him, to the finishing line?

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paddle steamer
By DJKL
31st Oct 2018 09:57

Or, the more innocent, the bank said x to your client who not fully understanding it regaled it to you as y- in effect that old classroom game, "Chinese Whispers".

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By thomas34
31st Oct 2018 10:45

The heading doesn't seem to correlate with the information underneath. How can confirming someone's trading address have any connection with acquiring credit facilities?

Since a credit check by the bank would likely only show up the customer's home address it seems sensible to verify the trading address.

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By Manchester_man
31st Oct 2018 17:06

It's definition only ever been reference requests that have asked for regulatory body in my experience.

If I was suspicious, I'd write to the manager asking whether any references had been used as a basis of providing finance to anybody in the past X months, as you believe somebody may have fraudulently used your details.

It could be a different funding house he has used, but sounds like the bank may be with a try.

Im not saying I think the client has done this, but if I had suspicians, that is what I'd do.

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