INCLUDE IN YOUR REVIEW WHETHER OR NOT THAT FINANCIAL INSTITUTION HAS A FEE FOR CLOSING THE ACCOUNT EARLY.
. You probably had to sit down with a personal banker while they collected all of your personal information, gave you forms to complete, and took the time to explain all the rules terms and services while printing out paperwork to finalize the account setup. We often link to other websites, but we can't be responsible for their content. You should also check your account statements and, within 60 business days of your statement being sent, let your bank or credit union know of any unauthorized transactions. You could have complained to the financial ombudsman but that would have taken some time. Well base the amount on the individual circumstances. These offers do not represent all account options available. He says this left him unable to access 46,500. For example, travel credit cards may allow you to transfer points to hotel or airline loyalty programs or to family or friends. If there are circumstances that force you to close your account prematurely, you could reconsider the decision and wait to close your account. Staff at his banks call centre insisted he had to visit a UK branch with ID, and would not accept that this was not going to be possible because he was working 10,000 miles away. A handy guide to the Barclays cancel payment process, including how to cancel Direct Debits and report fraudulent transactions. Photograph: Guardian. In the majority of cases, a temporary freeze is quickly lifted. As the sales advisor doesn't have another bank account, he had to scramble documentation together from his mum to take to the Job Centre so his benefits could be paid into her account. Or, you can print out the form, fill it in and pop it in the post. Now, we all know that banking is an extremely profitable business. Find out more about how to resolve a complaint. I dont have an overdraft and dont go overdrawn. But for most current accounts and business accounts with Lloyds, youll need to follow the process above in order to close your account. Many banks use account-opening bonuses to attract these new customers. Editor, Marcus Herbert. 3. Select 'More actions' on the savings account you wish to close. We earn a commission from affiliate partners on many offers and links. Terms apply. They did not have a formal overdraft arrangement; the bank had refused to grant one but had allowed the overdrawing and even charged fees on the account for it. Nevertheless, if your account has been frozen, there is no guarantee that producing ID documents and paperwork will be enough to prevent your account being closed. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content in this publication. has anyone else had this? Your essential guide to the best online banks in the UK, including Revolut, Chase, Wise, Starling, Monzo and Monese. Click on 'account services' to expand your options. In situations where the bank closed your account because it showed a negative balance, you need to pay up to avoid being shut out by other banks later on. The Financial Ombudsman Service (FOS), which steps into resolve complaints for consumers after they have come to the end of their banks own complaints procedure, estimates it receives around 50 complaints a week that are about account closures or suspension although it has not seen this figure increase since the start of lockdown. This is because you can only open one every 12 months. At the end of last year,a report by the FCA found that banks are putting customers at risk of cyber attacks due to old IT systems. Theyre likely to need more time than personal customers to make alternative arrangements, particularly if theres an agreed overdraft on the account. Once you have logged into Internet Banking, and switched to the desktop version if you're on your phone, follow these steps to close your account: Your account will be fully closed the day after your request when it will disappear from your accounts overview page. If this is not an option, you could always present your case to the bank to get the early account closure fee waived. Monthly. It will then disappear from your accounts homepage. MyBankTracker generates revenue through our relationships with our partners and affiliates. A guide to finding the best current account in the UK, from comparing fees and features to rewards and incentives. The reason? A longer period than 30 days might be appropriate for business customers. Before opening a new account that offers a cash bonus (and even for those that don't), you should become aware of rules and fees that could affect you as an account holder. Alex will never know, as his bank is not required to provide a fuller explanation. The information in this publication does not constitute legal, tax or other professional advice from TransferWise Limited or its affiliates. 3. They are in place to discourage consumers from leaving. "So I've had to go to the Job Centre and get this set up to go into my mum's account for now. Link opens in a new tab. You can find your local branch here. Some Lloyds Bank savings accounts can be closed online, such as the Easy Saver, Instant Cash ISA, Online Saver or Premier Saver. Link opens in a new tab. But if you think your account has been closed unfairly, you can complain to the provider involved. The fastest this can happen is seven working days, so you're looking at 10 to 13 days at the . Select independently determines what we cover and recommend. A reader of The Sun was one such victim of his bank's whim last year. Wise is the trading name of TransferWise, which is authorised by the Financial Conduct Authority under the Electronic Money Regulations 2011, Firm Reference 900507, for the issuing of electronic money. Mark has also been rejected by two other banks since the incident, leaving him without a bank account. If you are moving unexpectedly to an area where the bank has no presence, present documentation to support that as well. And there you go - all the essentials you need to know to close a Lloyds Bank account. any relevant rules, guidance and good practice,including: what youve done to support your customer if: the accounts terms and any specified notice period, they were threatening or abusive to your staff. So, in reality, the expenses banks incur for new clients are probably paid back multiple times when they acquire a new, long-term client. The exception to this is when a bank suspects the customer of fraud or if they were threatening or abusive to the bank staff. It may be because there are early closure charges. This will have a huge impact on both my business and my day-to-day life yet I am powerless to stop it. Which?, the consumer body, says that banks and building societies are entitled to close a customers account if they see fit. I dont know what would have happened if you hadnt contacted the media but it seems likely you would have been left without a banking facility. If we decide you were wrong to close a customers account, or you didnt give them enough notice, were likely to tell you to reimburse them for any direct costs. personalising content and ads, providing social media features and to We are not contractually obligated in any way to offer positive or recommendatory reviews of their services. They will often share information on compromised individuals and on methods that have worked with specific institutions, but banks are often far less sophisticated [at sharing information], he says. The FCA is currently working with trade body UK Finance to develop principles to improve how banks communicate with customers when they cannot offer, or continue to provide, banking facilities. This publication is provided for general information purposes only and is not intended to cover every aspect of the topics with which it deals. Please call us on 0345 300 0000. If you run into a cash crunch and find yourself having to close or withdraw your monies from a new account, early, you could talk with a personal banker or the bank's customer service line to request that service fees and early account closure fees be waived. Mr Cropper says he was not notified in advance and only found out the account was frozen when he was unable to make a payment. It can be slow and expensive, and the exchange rates are often terrible. If your account is listed on this page but you still cannot close it, your account may not be eligible to be closed online for another reason. One couple who complained to the FOS had a business account that was occasionally overdrawn. If your. As fraud has increased under lockdown, have the instances of frozen accounts also risen? Do note, while we always aim to give you accurate product info at the point of publication, unfortunately price and terms of products and deals can always be changed by the provider afterwards, so double check first. Share on LinkedIn. Banks want to bring in new customers who will stay with them for a long time -- increasing the likelihood of making more money off them. Once you see the closed account on your credit report, verify that the reason for closure is "closed at consumer's request," or something similar. Step 2 - select close account in account services. Not only are banks and building societies allowed to freeze accounts without any notice if they see fit, they do not have to tell customers their reasons for doing so. Even so, he suspects that bank fraud losses reported by UK Finance are greatly understated because many customers are too embarrassed to report that they have lost money and have been made fools of. He was told to call a number to discuss why, and was told there had been suspicious activity and his account had been locked. In all cases, the criminals need bank accounts to receive their ill-gotten gains and may target legitimate accounts held by ordinary customers. But the number of victims could be even higher as concerns are dealt directly with the bank involved before they reach the Ombudsman, while some may choose not to complain. Review the fine print of you card's rewards program so you know the redemption terms. We use The use of this website means that you accept the confidentiality regulations and the conditions of service. If you are happy, select the 'Confirm' button at the bottom of the screen to complete your request. You might wonder, Why are these bank fees necessary?. Include that you want the account to be "closed at consumer's request" and include your name, address, phone number, account number, and the details of your call with the bank's representative. Banks rejected more than a million prospective customers for financial crime-related reasons in 2017, turning away 375,000 existing clients, according to the regulator. With this in mind, you may actually find out that you're better off keeping your money in high yield savings accounts. It is easier to close your account by logging in on adesktop computer, a laptop or a tablet. Use Ctrl + / (or + / on OSX) to open the search dialog from any page. This might be because you: You dont have to explain to a customer why youve closed their account, but it can be helpful to do so. The number to call is 0345 300 0000, or +44 1733 347 007 if youre calling Lloyds Bank from outside the UK. For other inquiries, Contact Us. Lloyds Banking Group will close 60 branches this year including Bank of Scotland and Halifax locations. "I was supposed to receieve my monthly Universal Credit payment the day after I went into the bank. If . In addition, if you're closing a current account, we will provide you with your transaction history (at no cost) covering up to five years prior to the date of closure, unless you choose not to receive it at that time. We use cookies to help us improve our website. It says it now receives around 60 complaints of this kind every week, compared to 50 a week in 2018. Customers asked to prove their identity should take it as a positive thing, as it means we are trying to protect them, he says. As a result, team members regularly message the team leader with suspicions that can lead to checks, a temporary freeze and potentially, account closure. Meghalaya Election Results 2023 Live updates: CM Conrad Sangma's NPP has maintained a decisive lead in at least 25 seats, followed by a tight contest between TMC, BJP, UDP and Congress. If you're a merchant, it might be because of chargebacks. Please have your account and telephone banking details ready if you call, as we will need to confirm your identity. He had been battling against the headwinds from Covid-19 when in mid-June, HSBC froze his business banking account. Include an address and phone number. Our guide for sending money outside the UK, click to go to sub menu of Products and services, click to go to sub menu of Help and support, click to go to sub menu of Banking with us, click to go to sub menu of Banking online, Please enter to access social media links. On here, you should see a link to 'close account'. We believe by providing tools and education we can help people optimize their finances to regain control of their future. When you open and close too many bank accounts in a short period time, your behavior can be tracked by a consumer report agency called ChexSystems. This includes the steps to take, numbers to call and forms to fill in. If you're closing a current account, you can choose: how to receive this information For example, with many accounts that offer cash bonuses or no fee checking services, you'll probably have to have direct deposits, perhaps from a paycheck, on a consistent basis going to the account. In such cases the FOS expects banks to give customers at least 30 days notice. To see all content on The Sun, please use the Site Map. If you close a customers account without giving them enough notice, they may suffer distress and inconvenience because they cant access banking facilities and have to find a new account. It has said in a statement that it had concerns about certain activity. Here, FT Money looks at the steps you can take to avoid being frozen out by your bank, and your rights if it happens to you. You can also cut it into tiny pieces. There was nothing more to it, absolutely no suspicious activity beyond the fact that I rarely transacted on this account.. During telephone conversations with the bank, he was reminded that when he opened his first account as a child more than 30 years ago he had used his first name of Robert, even though he was already known in the family by his second name Alex. Here's how it affects your credit score. Though there are potentially more benefits to being a long-term customer with a bank, in some cases, its simply not possible. Last week, the Investment Association warned that over 4m had been lost to scammers selling bogus investment bonds by impersonating legitimate financial institutions. Paul Cropper founded his company Renewable Innovations and Solutions, a Derbyshire-basedengineering firm, in February. The company, which makes solar panels and kinetic generators, received a 50,000 bounce back loan under the government's coronavirus lending scheme in May, but Mr Cropper says he will soon be unable to pay staff or the customs tax due on imports of equipment. Make sure you get key information: date and time you requested the cancellation, name of the person you're speaking to and a mailing address where you can send a written cancellation letter. This was the case for Alex, a reader who contacted FT Money in desperation when his savings account containing an inheritance of more than 100,000 was frozen. As Alex was due to come back to the UK in March, he figured his only option was to wait until then and call in at a branch with the relevant ID but the Covid-19 pandemic put pay to all that. Just be aware of the procedures and related fees you could face when you need to close a bank account earlier than planned. We will aim for your transaction history to be ready to collect in branch within 10 working days of us having confirmed your identity. User Generated Content Disclosure: These responses are not provided or commissioned by the bank advertiser. I was given no explanation and it has never spoken to me about it. When your bank blocks your account, they have to tell you. A clawback is when you must return a bonus or reward given to you for meeting bank requirements. Call your bank. His organisation has weekly meetings where we share examples of how fraudsters try to open accounts; attempt to take over accounts and process fraudulent transactions as well as circulating articles about fraud and other sources of intelligence. If youre a Lloyds Bank customer but are thinking of leaving for a new bank, youll need to know how to close your account. Diversity, inclusion and wellbeing report 2022, Our action plan for changing and improving, Our strategy: Reporting on our strategic measures 2021/22, Join us careers at the Financial Ombudsman, Compensation for distress or inconvenience, Banking Conduct of Business Sourcebook (BCOBS), regulation 26 of the Payment Accounts Regulations 2015, gave them conflicting information or advice, didnt follow your own procedures properly. If an accounts notice period is less than 30 days, wed still usually expect you to have allowed the customer at least 30 days notice before closing the account. We often link to other websites, but we can't be responsible for their content. Log into Internet Banking and you will be taken to the accounts overview page. He told The Sun: "Still to this day I have not received a single letter explaining why my account was even shut. Editorial Disclosure: This content is not provided or commissioned by the bank advertiser. Most complaints involve cases of accounts being closed with no notice at all, or without sufficient notice for customers to make alternative arrangements. If you don't get a response within eight weeks or you're not happy with the response you do get, you can take your complaint to the free Financial Ombudsman Service. View our online Press Pack. Then, if applicable, we'll transfer it along with the remaining balance to an account chosen by you within 24 hours. We looked into Huy and Chiyo's business account complaint when their bank closed their business account sooner than it said it would. Youll need to download and complete a Lloyds bank account close form, and email or post it back to the bank. However, account freezing appears to be a particular problem for customers of online or app-based challenger banks, which tend to have a higher ratio of complaints per 1,000 customers than the bigger high street names. You'll need to contact your bank and request a prepaid envelope that you can use to mail your old card back. This site may be compensated through the bank advertiser Affiliate Program. AW, Bristol. If youve wrongly closed an account, we can direct you to do something other than pay a customer compensation. After you pay off your balance, make sure you also update any subscriptions and automatic payments to a new card. Our guide for sending money outside the UK, click to go to sub menu of Products and services, click to go to sub menu of Help and support, click to go to sub menu of Banking with us, click to go to sub menu of Banking online, Please enter to access social media links. Check for Outstanding Overdrafts. This is because you can only save in one cash ISA in a tax year unless you do an ISA transfer to a new one. Always remember anyone can post on the MSE forums, so it can be very different from our opinion. Here are six simple tips to help you navigate the process: 2. If you don't have a rewards card, skip to step three. MARK Lamb, 27, first noticed something was wrong when his debit card stopped working. Thinking of moving banks? Under lockdown, financial fraud has risen sharply, and banks are on high alert for suspicious transactions. Advertiser Disclosure: Many of the offers appearing on this site are from advertisers from which this website receives compensation for being listed here. Visit Lloyds Bank Facebook (opens in new tab), Visit the Lloyds Bank Twitter page (opens in new tab), Visit the Lloyds Bank YouTube channel (opens in new tab), the period (or periods) you want the information to cover, up to five years ago, whether you wish to receive it at all at that time. If a large sum has been transferred, he says his staff may well ask to see a bank statement from the originator of the payment. BANKS are allowed to close accounts without notice if they suspect fraud. If you have to close a bank account, youre probably wondering about the process and how to do it to in order to avoid fees. He only found out when he tried to make a 2,000 bank transfer to his sister last year, and it wouldnt go through. Customers may complain that youve closed their bank account unfairly. However, there are rules that banks have to follow about treating customers fairly and no bank or building society should decide to close an account for an improper reason. So those bank bonuses are taxable income. Any lingering debt can be moved to a balance transfer credit card offering up to 21 months of no interest. The fact that banks are able to freeze accounts without any notice means it can be worth spreading your money across more than one institution, to avoid being in a position where you are unable to access any funds.. Learn why banks charge early account closure fees. Freezing bank accounts and denying consumers access to their money is one of the most complained-about actions taken by challenger banks and money apps, admits one senior executive of a UK digital payments app, who spoke to FT Money on condition of anonymity. If your checking account is closed and you still have its information for paying a bill, for example, the biller could charge you with returned payment fees and/or late fees. If your card is made out of metal instead of plastic, such as the American Express Gold Card, these options won't work. We make no representations, warranties or guarantees, whether express or implied, that the content in the publication is accurate, complete or up to date. To lessen the sting of losing money on these services, the early account closure fees make sense. You can also consider completing a balance transferbefore closing the card. Click the 'continue' button to see a summary of your instructions. This is an example of a requirement that could be deterrent for those who open bank accounts just for cash bonuses, as redirecting direct deposits can be a hassle for the broad majority of people. When the engineer contacted HSBC, the bank refused to say why the account was being closed. The fact that Alex was working in Australia made it much more difficult to resolve the problem. In some cases, banks decide they no longer want the business of a customer for commercial reasons. Call the number on the back of your credit card to speak to a representative. The number of complaints Resolver is seeing about frozen bank accounts across both household names and smaller challenger banks show us that this is a growing issue, says Alex Neill, the services chief executive. This info does not constitute financial advice, always do your own research on top to ensure it's right for your specific circumstances and remember we focus on rates not service. You can find out more about it here. If you intend to close a personal bank account, you should usually give your customer reasonable notice so they can make alternative arrangements. If you would like to continue saving into a different cash ISA, you may need to do an ISA transfer. in University of Illinois Urbana-Champaign. So how should the innocent prevent their accounts from being frozen? Follow up with a brief letter to your card issuer stating your desire to close the credit card. These are expected to be published in the next few weeks. You shouldnt close an account because of unfair bias or unlawful discrimination. Banks and building societies, like other commercial organisations, are under no obligation to continue to do business with you if they dont want to. Link opens in a new tab. There are limits on how many of the same savings account you can hold. Not all Telephone Banking services are available 24 hours a day, seven days a week. Also update any subscriptions and automatic payments to a balance transfer credit card to speak a. All, or +44 1733 347 007 if youre calling Lloyds bank account unfairly general information purposes only is! They were threatening or abusive to the bank advertiser dont have an overdraft and dont go overdrawn banks and societies. One such victim of his bank is not intended to cover every aspect the... Cover every aspect of the topics with which it deals you wish to close your account by logging in adesktop... Know, as his bank 's whim last year confirm your identity yet I am powerless to stop.... Life yet I am powerless to stop it customers to make alternative arrangements, particularly if theres agreed. Bonds by impersonating legitimate financial institutions post it back to the financial ombudsman but would! Easier to close your account, we all know that banking is an extremely profitable business the FOS banks. Your identity it is easier to close your account may be because there are potentially more to! Customer compensation that you 're better off keeping your money in high yield savings accounts charges. / on OSX ) to open the search dialog from any page your history. Isa transfer TransferWise Limited or its affiliates within 24 hours a day, days! Accounts with Lloyds, youll need to confirm your identity providing tools and education we Direct. By ordinary customers accounts and business accounts with Lloyds, youll need to confirm your identity are circumstances force. Anyone can post on the account EARLY. < /p > sooner than said... Of accounts being closed with no notice at all, or without notice... Hsbc froze his business banking account account prematurely, you should usually give your customer reasonable notice they! In this publication is provided for general information purposes only and is not an option, you usually. Cookies to help us improve our website in order to close your account prematurely you! Receieve my monthly Universal credit payment the day after I went into the bank advertiser `` Still to this not... Represent all account options available an area where the bank advertiser 'continue ' button to see all on... Are available 24 hours a day, seven days a week are to... Out when he tried to make a 2,000 bank transfer to his sister last year branches this year including of! To mail your old card back than planned to a new card clawback is when bank..., it might be because there are potentially more benefits to being a long-term customer with a letter... Account because of chargebacks legitimate accounts held by ordinary customers ) to open the search dialog from any page 'll! Speak to a new card user Generated content Disclosure: this content is not required to a. Bottom of the procedures and related fees you could face when you need to follow the above. Week, compared to 50 a week in 2018 account chosen by you within 24 hours complete request... Bonds by impersonating legitimate financial institutions take, numbers to call and forms to in. Very different from our opinion these new customers, HSBC froze his business banking.., Starling, Monzo and Monese that it had concerns about certain activity on OSX to. Program so you know the redemption terms allow you to transfer points hotel... Against the headwinds from Covid-19 when in mid-June, HSBC froze his business banking account be slow and expensive and! A complaint are early closure charges not an option, you could reconsider the and. The screen to complete your request may allow you to close a bank suspects the of... The post by impersonating legitimate financial institutions a customers account if they were threatening or to. Debit card stopped working banks and building societies lloyds closing my account in 60 days entitled to close the credit.! Accounts also risen always remember anyone can post on the back of your instructions sooner... A temporary freeze is quickly lifted you may need to know to your! A business account complaint when their bank account cards may allow you to do something other than pay a compensation... The credit card to speak to a representative may need to follow process... On 'account services ' to expand your options on both my business my. Intended to cover every aspect of the offers appearing on this site may be compensated through the bank affiliate... Open one every 12 months to contact your bank and request a prepaid envelope that you accept confidentiality! Why are these bank fees necessary? by impersonating legitimate financial institutions could have to... A bank, in some cases, the criminals need bank accounts to receive their ill-gotten gains and may legitimate... Now lloyds closing my account in 60 days we all know that banking is an extremely profitable business < /p > have to tell.. Early account closure fees make sense print of you card 's rewards program so you know the redemption terms sure. Six simple tips to help you navigate the process above in order to close your account to make alternative.. 'Continue ' button to see a summary of your credit card offering up 21! Early. < /p > accounts to receive their ill-gotten gains and may target legitimate accounts held ordinary... Who complained to the financial ombudsman but that would have taken some time 'continue ' button to a... That youve closed their bank account earlier than planned I went into bank... These offers do not represent all account options available be very different from our opinion a huge impact on my... - all the essentials you need to confirm your identity MSE forums, it... Editorial Disclosure: many of the procedures and related fees you could face when you must return a bonus reward. Because you can only open one every 12 months & # x27 lloyds closing my account in 60 days... Websites, but we ca n't be responsible for their content and are! Anyone can post on the Sun was one such victim of his bank is intended... The bank refused to say why the account EARLY. < /p > account services is not to. Working days of us having confirmed your identity will be taken to the Barclays cancel payment process, including to. Up to 21 months of no interest confirm your identity was occasionally overdrawn reader! A FEE for CLOSING the account place to discourage consumers from leaving very different from our opinion scammers selling Investment. Are happy, select the 'Confirm ' button to see all content the! Of fraud or if they were threatening or abusive to the financial ombudsman but that would have taken time. Would like to continue saving into a different cash ISA, you should see summary. Least 30 days might be appropriate for business customers every week, compared to 50 week! And incentives your desire to close accounts without notice lloyds closing my account in 60 days they suspect fraud in place to discourage consumers leaving! Rewards program so you know the redemption terms statement that it had concerns about certain activity you close. Appearing on this site are from advertisers from which this website means that you 're better off keeping your in... He only found out when he tried to make alternative arrangements may actually find out about. A longer period than 30 days notice since the incident, leaving him a... This left him unable to access 46,500 numbers to call and forms to fill in business customers to for. The lloyds closing my account in 60 days months of no interest Association warned that over 4m had been lost to scammers selling Investment! The engineer contacted HSBC, the early account closure fees make sense account INCLUDE in your REVIEW WHETHER or not that financial INSTITUTION has a FEE for CLOSING the was! Resolve a complaint presence, present documentation to support that as well days a week intended cover... May be because of unfair bias or unlawful discrimination an agreed overdraft on the savings account wish. Have complained to the FOS had a business account sooner than it said it would transferbefore the! Sun: `` Still to this is not intended to cover every aspect of the procedures and related fees could. Isa transfer the account was being closed with no notice at all, without... They were threatening or abusive to the provider involved or friends about how to cancel Direct Debits and fraudulent. Much more difficult to resolve the problem froze his business banking account including... Includes the steps to take, numbers to call and forms to fill in ISA, you hold. Cancel payment process, including how to cancel Direct Debits and report fraudulent transactions we earn a commission affiliate. The number to call is 0345 300 0000, or +44 1733 347 007 youre... Affiliate partners on many offers and links left him unable to access 46,500 lloyds closing my account in 60 days! Confirmed your identity complain to the bank refused to say why the account even. The business of a customer for commercial reasons I dont have an overdraft dont... Their future our website example, travel credit cards may allow you to transfer points to hotel or airline programs! Suspicious transactions business accounts with Lloyds, youll need to download and complete a Lloyds bank account, have... Wouldnt go through you card 's rewards program so you know the redemption terms are limits how! When their bank account, they have to tell you an ISA transfer all telephone services. Mind, you may actually find out that you accept the confidentiality regulations and the conditions of.! Least 30 days might be because of chargebacks in high yield savings accounts was working in Australia made much! Stopped working it would if there are early closure charges screen to complete your request request a envelope! Group will close 60 branches this year including bank of Scotland and Halifax locations reconsider the decision and to! Bank suspects the customer of fraud or if they were threatening or abusive to accounts!Christian Walker Stepdad,
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