Declined Application for Current Account


T

Tom Robinson

I'm trying to open up a joint bank account for myself and my
girlfriend (who I'm living with) to pay for bills and food etc. So
far I have applied to Cahoot and, following their rejection, to Smile.
Cahoot rejected me on the grounds of "inconsistencies in my
application" and refused to provide any more detail than that. I
suspect this was due to the fact that I've just started a new job and
they asked me to send proof of my salary which I sent in the form of
an employment contract which ran from the date of 1 week after my
initial application. I think I passed their initial credit checks
though.

Smile have just rejected my application on the spot on account of an
unsatisfactory credit score resulting from their Equifax checks. Is
it possible that I have a bad credit rating? I have a bit of credit
card borrowing (about £800) and a standard student loan, but other
than that I can't see any reason why my score should be
unsatisfactory.

Where do I proceed from here? Is it likely that I will be rejected
from applications from other current accounts? Is there any point in
me sending my cheque for £2 off to Equifax to find out what's going
on, or is that a waste of time?
 
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J

Jonathan Bryce

Tom said:
Smile have just rejected my application on the spot on account of an
unsatisfactory credit score resulting from their Equifax checks. Is
it possible that I have a bad credit rating? I have a bit of credit
card borrowing (about £800) and a standard student loan, but other
than that I can't see any reason why my score should be
unsatisfactory.
One of the factors in your credit score is the length of time in your
current employment. If you have just changed jobs, then that isn't going
to help you.

If you recently moved house, then that will depress your score as well.
 
T

Tom Robinson

One of the factors in your credit score is the length of time in your
current employment. If you have just changed jobs, then that isn't going
to help you.

If you recently moved house, then that will depress your score as well.
Ah, I didn't know that, thanks for the information. Seems strange to
me that these should be factors in how much of a credit risk you are,
although I suppose someone with a steady income over a long period of
time is less of a risk for that reason. Still, it's my first job out
of university so I can't see how my score can be worse than when I
previously didn't have a job. It's also a bit annoying because the
very reason for opening the bank account is that I have moved house
(and started a new job) in order to live with my girlfriend, and that
is why we need the joint account!

Presumably the necessity for them to obtain a credit rating for me is
down to the fact that they are offering the facility to borrow money
(an overdraft), ironically this is not a feature of the account that I
intend to make use of. Would it make a difference if I went to
another bank who don't offer any overdraft, or specifically requested
that I not be given one, or do the banks still want to check your
credit rating just to assess other possible risks? Perhaps there's
the possibility I could incur bank charges which I would not be
willing/able to pay - are they worried about this?

Perhaps the best thing to do is to wait a few months - we can continue
to use our separate current accounts - not as convenient but
definitely possible. And then start looking for a joint account at
that stage.
 
R

Richard Faulkner

Tom Robinson said:
Perhaps the best thing to do is to wait a few months - we can continue
to use our separate current accounts - not as convenient but definitely
possible. And then start looking for a joint account at that stage.
If you already have a current account, why dont you ask your existing
bank for a joint account with your GF? Or vice versa.
 
T

Tom Robinson

If you already have a current account, why dont you ask your existing
bank for a joint account with your GF? Or vice versa.
Yeah, I suppose I'll probably end up doing that actually. The only
thing stopping me from doing this in the first place was that I was
keen to get a bit of interest on any spare money that was lying around
in the account - and my existing bank is NatWest. :)
 
D

Daytona

Tom Robinson said:
Still, it's my first job out
of university so I can't see how my score can be worse than when I
previously didn't have a job. It's also a bit annoying because the
very reason for opening the bank account is that I have moved house
This is a common problem - try using your/her parents address then
changing it after 6 months. The electoral register entry is treated as
a minor issue for credit checks.

Daytona
 
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P

Phil Deane

Tom Robinson wrote:

Where do I proceed from here? Is it likely that I will be rejected
from applications from other current accounts? Is there any point in
me sending my cheque for £2 off to Equifax to find out what's going
on, or is that a waste of time?
Get reports for both yourself and your girlfriend, just to make sure.

As for your cahoot application. did you qrite the wrong start date of your
employer?(the contract was a week after the application) Are you in a
probationary period?

As for the low score, when you get the reports you will be bale to check and
see how many credit searches you and your girlfriend have.
 
P

Phil Deane

Daytona said:
This is a common problem - try using your/her parents address then
changing it after 6 months. The electoral register entry is treated as
a minor issue for credit checks.
But then you are lying about your address? Which if found out could land you
a nice big fat CIFAS warning(For providing false addresses), which will
make it even more difficult if not impossible to get any current account.
 
E

Eric Jones

Phil Deane said:
But then you are lying about your address? Which if found out could land you
a nice big fat CIFAS warning(For providing false addresses), which will
make it even more difficult if not impossible to get any current account.
The OP should have provide addresses for last 3 years when opening account.
If they cannot be found at present address a search on previous address can
be made.Either OP has not given all the facts here or they have not been on
electoral roll at all OR perhaps there is something untoward on their
address now. Either way a £2 cheque or Postal order to Experian will give
them a copy of their credit file and if there is anything there that is
wrong they will be given an opportunity to correct.
So just out of Uni any debts other than student loans eg credit cards where
someone forgot a payment on time? or more than one bank account because say
in last year of Uni bank were unable to increase o/d so someone opened an
account elsewhere? As I say I don't think we have all the facts here.
Eric
 
D

David Marsh

[Outlook error: message invisible. See http://viewport.co.uk/outlook ]
begin Phil Deane's quote in uk.finance
about: Re: Declined Application for Current Account
But then you are lying about your address?
Who said anything about lying?
I wasn't aware any address given to a bank had to be anywhere other than
somewhere they could send statements to. No lie involved.

In fact, I've often given my parents address as the point of contact
during periods of, umm, address instability (doncha just love shitty
rented flats, 'til you find a nice one). I'm sure I'm far from having
been alone in this.


Admittedly, if opening a _new_ account these days (rather than redirecting
mail for an existing account), that's somewhat harder to do, given all
the hoops you have to jump through to prove the address is "valid",
which, as has been commented before, is quite hard, if none of the bills
are in your name.

(Although you can, of course, use statements from existing bank accounts
at that address to demonstrate the validity of *that* address. Duh!)

Which if found out could land you a nice big fat CIFAS warning
(For providing false addresses),
But it's not false. If a bank wants to know where you live, rather than
where they should send mail to, they should _explicitly_ ask for that.

It's not (in my case) as if it's a property the bank has a mortgage in my
name over, in which case I could understand them being slightly interested
to know where it is, in case they need to get their hands on it ;-)
(Although they should probably have that information on file already! :)

which will
make it even more difficult if not impossible to get any current account.
That would indeed be a pain.
I don't see why a bank should actually care where you live, unless they
offer you credit facilities. But they're often, understandably, loathe
to do that to new customers, and rightly so.

But all somebody dodgy would need to do is open an account somewhere where
they do have a 'demonstrably' valid address, wait a few months, and then
at that point tell the bank they've moved somewhere fictitious, if they
want to do a runner..

(NB: I'm not advising or recommending this as a course of action!)


It's inherently obvious that it's subdermal GSM transponder tracking
devices we desperately need.. :-(


--
 
J

Jonathan Bryce

David said:
But all somebody dodgy would need to do is open an account somewhere where
they do have a 'demonstrably' valid address, wait a few months, and then
at that point tell the bank they've moved somewhere fictitious, if they
want to do a runner..
Alliance and Leicester wanted proof of my new address when I moved (for a
Cash Isa).
 
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P

Phil Deane

David said:
[Outlook error: message invisible. See http://viewport.co.uk/outlook ]
begin Phil Deane's quote in uk.finance
about: Re: Declined Application for Current Account
But then you are lying about your address?
Who said anything about lying?
I wasn't aware any address given to a bank had to be anywhere other than
somewhere they could send statements to. No lie involved.
Emm. If the form says "What is your current address?", or "Please give
details of your previous addresses within the last 3 years" and you give
your parents address when you don't live there, then it is lying. I doubt
the form says "What address would you like your statements sent to?"
In fact, I've often given my parents address as the point of contact
during periods of, umm, address instability (doncha just love shitty
rented flats, 'til you find a nice one). I'm sure I'm far from having
been alone in this.
You are not alone in doing it, but I have seen people get CIFAS warnings
placed against their name because of providing false addresses. Point of
contact or correspondence address is much different from where you live.
Admittedly, if opening a _new_ account these days (rather than redirecting
mail for an existing account), that's somewhat harder to do, given all
the hoops you have to jump through to prove the address is "valid",
which, as has been commented before, is quite hard, if none of the bills
are in your name.


But it's not false. If a bank wants to know where you live, rather than
where they should send mail to, they should _explicitly_ ask for that.
Is this the way you would you like

"What is your address, you know the one you REALLY live at, not a phony
address, or your mums address even though you haven't lived there for 4
years, or your mates house, but the one you live at, you know sleep at, you
know really and truly live at, cross your heart and hope to die?"
I don't see why a bank should actually care where you live, unless they
offer you credit facilities. But they're often, understandably, loathe
to do that to new customers, and rightly so.

But all somebody dodgy would need to do is open an account somewhere where
they do have a 'demonstrably' valid address, wait a few months, and then
at that point tell the bank they've moved somewhere fictitious, if they
want to do a runner..
Due to new Money laundering Reg's to change an address you generally need
proof, such as a utility bill to change your bank account over.
 
R

Richard Faulkner

In message said:
I don't see why a bank should actually care where you live, unless they
offer you credit facilities. But they're often, understandably, loathe
to do that to new customers, and rightly so.

But all somebody dodgy would need to do is open an account somewhere
where they do have a 'demonstrably' valid address, wait a few months,
and then at that point tell the bank they've moved somewhere
fictitious, if they want to do a runner..
In asking you to prove an address, they are merely complying with Money
Laundering regulations - they have no choice as it is a very serious
criminal offence not to comply.

Your idea for a dodgy dealer does not actually work but it would not be
difficult for a dodgy dealer to create an address where he/she could not
be traced, but would be acceptable for bank purposes. Notwithstanding
the fact that it is simple to get around this part of the regs. The
banks still have no choice.
 
T

Tim

Due to new Money laundering Reg's to change an address you generally
need proof, such as a utility bill to change your bank account over.
Hold on - if you move house on (say) 1st June, are you saying you then need
to *wait* until you get a utility bill for the new house before the bank
will switch addresses?

What if a statement is posted from the bank on, say, the 3rd June? And
don't say "you can get Post Office to re-direct mail" - because some people
may not wish to pay for something which they don't really need!
 
U

usenet

Phil Deane said:
David said:
[Outlook error: message invisible. See http://viewport.co.uk/outlook ]
begin Phil Deane's quote in uk.finance
about: Re: Declined Application for Current Account
But then you are lying about your address?
Who said anything about lying?
I wasn't aware any address given to a bank had to be anywhere other than
somewhere they could send statements to. No lie involved.
Emm. If the form says "What is your current address?", or "Please give
details of your previous addresses within the last 3 years" and you give
your parents address when you don't live there, then it is lying. I doubt
the form says "What address would you like your statements sent to?"
I disagree, an "address" is a place to send things to, not necessarily
a place where you live. If they want to know where you live then they
should ask exactly that.
 
D

David Marsh

[Outlook error: message invisible. See http://viewport.co.uk/outlook ]
begin Phil Deane's quote in uk.finance
about: Re: Declined Application for Current Account
Emm. If the form says "What is your current address?", or "Please give
details of your previous addresses within the last 3 years" and you give
your parents address when you don't live there, then it is lying. I doubt
the form says "What address would you like your statements sent to?"
I think they just say "Address", which I'm sure most people infer to be
"Address for correspondence", which admittedly, usually does happen to
be the address you live at.

If they wanted to be more specific, they should say so ;-P

You are not alone in doing it, but I have seen people get CIFAS warnings
placed against their name because of providing false addresses. Point of
contact or correspondence address is much different from where you live.
Are people made aware that such warnings have been issued (what is
CIFAS, by the way?), or are they private to the banks themselves?
What effect does this have anyway (do the banks just ask for more and
more verifiable information to check a scam is not being committed)?

Is this the way you would you like

"What is your address, you know the one you REALLY live at, not a phony
address, or your mums address even though you haven't lived there for 4
years, or your mates house, but the one you live at, you know sleep at, you
know really and truly live at, cross your heart and hope to die?"
Well, they'd probably get a Plain English Crystal Mark, at least, for
wording it that way! :)

I think having two fields:
"Residential address" and "Address for correspondence (if different)",
would do the trick nicely, though.

Due to new Money laundering Reg's to change an address you generally need
proof, such as a utility bill to change your bank account over.
I moved this time last year, and none of my banks asked.
Or have they tightened things up since then?

That's going to be a *right bugger* for many people, though: what if the
bills aren't in your name, and what if it takes a while to get paperwork
(with the new address) through from the utility company?

(And what is it that banks dislike about mobile phone bills? They're
surely the most 'personal' bills you can get)


I know it's the law, but these are the most badly-implemented
regulations conceivable. They create massive amounts of hassle for
ordinary people, yet, at the same time, dodgy types can still, with a
bit of effort, get around them quite easily.


Still, Government Gotta Be Seen To Be Doing Something.. :-(

--
 
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P

Phil Deane

Tim said:
Hold on - if you move house on (say) 1st June, are you saying you then
need to *wait* until you get a utility bill for the new house before the
bank will switch addresses?

What if a statement is posted from the bank on, say, the 3rd June? And
don't say "you can get Post Office to re-direct mail" - because some
people may not wish to pay for something which they don't really need!
If you move house on the 1st of June are you going to take a few days of
work to phone EVERYONE you could possibly get mail from to advise them you
have moved, so as you will avoid any missed correspondance?

Even if you phoned your bank and they changed the mailing address on 1st
June it will probably take more than a few days to filter right through
their system, to gaurentee your statement to your new address. I would
imagine a normal turnaround time would be about 5 working days, but that is
just a guess (Most other things seem to take that long)
 
P

Phil Deane

David said:
[Outlook error: message invisible. See http://viewport.co.uk/outlook ]
begin Phil Deane's quote in uk.finance
about: Re: Declined Application for Current Account
Emm. If the form says "What is your current address?", or "Please give
details of your previous addresses within the last 3 years" and you give
your parents address when you don't live there, then it is lying. I doubt
the form says "What address would you like your statements sent to?"
I think they just say "Address", which I'm sure most people infer to be
"Address for correspondence", which admittedly, usually does happen to
be the address you live at.

If they wanted to be more specific, they should say so ;-P
You are being pedantic. If you asked 100 people What is your address, I
would bet at least 95% would assume you mean where you live, not where
their correspondence goes to.


You are in a clothes shop, stick a pair of trousers in your bag and walk
out, the security guard stops you, and your in court.

"your honour, if they didn't want me to take them, they should have a sign
saying that"
Are people made aware that such warnings have been issued (what is
CIFAS, by the way?), or are they private to the banks themselves?
What effect does this have anyway (do the banks just ask for more and
more verifiable information to check a scam is not being committed)?
CIFAS stands for Credit Industry Fraud Avoidance Systems. What it is can be
seen here http://www.identityfraud.org.uk/what_is_cifas.asp

When a bank does a credit check and sees a CIFAS warning they can do a
number of things depending on what their policy is. At the very least they
will ask for mega backup documentation, and the worst is to decline the
application(the most probable, if the applicant has applied fraudulently
with another lender would you take them on?)

The warnings are placed there by other banks or institutions that find
mismatches in the verification process, ie someone says they live at one
address(parents) but in fact live at another(their own residence)

People are generally not made aware they have had a CIFAS warning place don
their account
I moved this time last year, and none of my banks asked.
Or have they tightened things up since then?

I moved 3 years ago and didn't have to prove it to some banks, (But it was
phone banking and they asked me all sorts of security information) and the
other wanted proof.

I got married in march and my wife went to her bank and changed the name on
her account, with no verification at all. That bank was in breech of Money
laundering regs
 
J

Jonathan Bryce

Phil said:
You are being pedantic. If you asked 100 people What is your address, I
would bet at least 95% would assume you mean where you live, not where
their correspondence goes to.
Depends in what context you ask the question.
 
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T

Tim

If you move house on the 1st of June are you going to take a few days of
work to phone EVERYONE you could possibly get mail from to advise
them you have moved, so as you will avoid any missed correspondance?
No - phone them all beforehand!

Even if you phoned your bank and they changed the mailing address
on 1st June it will probably take more than a few days to filter right
through their system, to gaurentee your statement to your new address.
I would imagine a normal turnaround time would be about 5 working
days, but that is just a guess (Most other things seem to take that long)
So phone them at least 5 w-days beforehand!
 

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