ASK & DISCUSS
INDEXRuning a business under a Stage name
1 year, 8 months ago - Ray Brady
Hi,
I have a friend who has been running a business (a none registered partnership) for over twenty years. His circumstances, with large overheads namely business premises rent, he is now financially crippled, caused by repeated Covid lookdowns, and presently financially in the red. Sadly getting legal advice is an unaffordable option.
Recently his bank account was suspended. There has been some tightening up/changes to the rules regarding businesses trading internationally and his business has fallen foul of them. Worth noting that the international money transfers are not large, under five thousand. The Banks main issue is that he started the partnership and has run his business till now using his stage name. This is not the name on his driving license or passport. Now this has become an issue, and his bank account is suspended, he has tried to explain this but they will not accept his explanation. I suspect that he is not the only person affected by this regulation change therefore can anyone please suggest help with a solution to this problem?
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1 year, 8 months ago - James McCann
Hi Ray,
There's nothing preventing a person having a bank account under any name they want, as long as they can prove they're not using it for illegal means. At this juncture it seems that the proof of burden is on the bank to prove that your friend was doing something illegal.
Your friend would need to get receipts from the businesses he paid/was paid by, and then correlate them against printed bank statements going back to the first business transaction via that account.
I'd also suggest your friend ask the bank, "What proof do I need to show you to prove this is my account?"
It would also be worth your friend taking an afternoon to do some reading on what the law states exactly on whether a person can run a bank account under a stage name. A lot of banks don't give sufficient training to their employees (so not the teller's fault), and if the customer doesn't really know either then trouble starts.
Response from 1 year, 8 months ago - James McCann SHOW
1 year, 8 months ago - James McCann
Edit to my above post;
Ray, is this in the UK or USA?
Response from 1 year, 8 months ago - James McCann SHOW
1 year, 8 months ago - Ray Brady
Hi James,
Firstly many thanks for taking the time to respond with help, very greatly appreciated. The person is in the UK and has been running his business till now without a problem. I can only guess that new regs regarding money laundering or such have created this situation. But he has books and business records going back twenty-plus years as proof, he was told that was not good enough proof as his ID name (passport or driver's license ) is not on them, only his stage name. If you have any knowledge of legal precedent that he could refer his bank to that would be really useful. Or alternatively, how he could escalate a complaint with the ban who has suspended his account and funds therein?
Response from 1 year, 8 months ago - Ray Brady SHOW
1 year, 8 months ago - James McCann
Hi Ray,
No worries, happy to help as and where I can with my limited experience/qualifications (as low-level as they are). I'm not a qualified lawyer, I don't have a legal degree. I have several legal diplomas (including L3 Contract Law) and have experience of business bank accounts getting funny with me.
Without looking it up (I'm a bit pressed for time) I would suggest that if the bank was going to change the rules they will have had to send out a letter/email to your friend telling him that changes were coming, and instructing him on what he needed to do.
If he can take anything with him along the lines of a business union card with the stage name, anything promo/marketing materials with his stage name and pic on, that he also has receipts for, that might help but don't count on it being legally-binding.
Again, I would still strongly suggest your friend asks the bank in as plain terms as possible, "What specific things do you need for me to prove that [real name] and [stage name] are the same person?"
The bank's website will probably have a little pop-up chat tool box, ask them in that for a link to make a complaint. Make sure to keep using the words "distress" and "inconvenience."
I would seriously push the bank for them to set the terms of what they consider to be valid proof. I would get your friend to remind the bank that when they set-up the account there was nothing in the law to state that the account couldn't be in a stage name, and as you can't retroactively prosecute someone once a new law has been brought in, that your friend has no obligation to have changed any names on the account (especially if the account had been running without a problem for twenty years).
Hope this helps somewhat,
James
Response from 1 year, 8 months ago - James McCann SHOW
1 year, 8 months ago - Ray Brady
Hi James,
Once again very helpful, logically argued, and a clearly stated plan as to how to proceed forward.
thank you
Kindest regards Ray
Response from 1 year, 8 months ago - Ray Brady SHOW
1 year, 8 months ago - Zan Barberton
Hi - my heart goes out to your friend, that sounds extremely stressful. I wondered whether he could approach the Film and TV Charity? (I think that's what they're called) I know they provide smallish hardship grants that could be spent on legal advice? Also BECTU will provide some free advice. The other advice he could get is from chartered accountants who specialise in Media issues. Certainly my accountants (Stirling) have been very good and often are willing to discuss legal / financial queries, although whether they would do so with a non customer might depend on his approach. Not in the run-up to the New Year Tax deadlines I imagine.
As a side-note my professional name is different from my legal one - I was forced to change all my account to match my legal identity back in the early 2000's when the law changes. I suspect his way forward is to change the name on his bank accounts.
Good luck.
Response from 1 year, 8 months ago - Zan Barberton SHOW
1 year, 8 months ago - Ray Brady
Hi Zan,
Many thanks for your thoughts and suggestions, good ideas and gratefully appreciated.
Kind regards
Ray Brady
Response from 1 year, 8 months ago - Ray Brady SHOW