Refused Bank Account by Nationwide

[JimTheGent]

Since I started legal action against the Abbey last Friday, I figured it would be a good idea to open a parachute account. So I took my bank statements for the past 6 years for all my accounts along to the Nationwide.

 

Now, I have no debts (other than household bills), don't borrow any money and have not been overdrawn in the past 4 years. All my accounts (both savings and current accounts) have a positive credit balance. I have an overdraft facility and a debit card on the Abbey account too. I checked my credit files prior to going and there is no adverse information. I am also on the electoral register.

 

After filling in all the forms, I was told I could only have a basic Bank Account - no credit/debit card and no overdraft facilty. They said this was because I had a low credit score - no other reason and not because of anything on my file. They said I had no history so that is all they will offer. But I do have a history. I had six years of statements with four other accounts and tow other Banks. I have a mobile phone on contract (which is a form of credit) and I have household utility bills which are paid on time. I also had a car on HP which was settled two years ago (so I owed nothing).

 

I am absolutely stunned. They did a search on my credit file which reduces the score still further. I was hoping to start a business but without a business account (for which they required a £5000 deposit) and without a credit or debit card, it puts me at a serious disadvantage. They will not even give me a cheque book. I cannot understand why. They also gave me no information about the basic account they have opened for me. I asked for a savings account to be opened at the same time but the woman told me she did not have time.

 

I have approached another bank and have an appointment on Thursday, but each search reduces your credit score further. Is there anything I can do?

[jonni2bad]

Strangely some people who have not had need for various kinds of finance can often find themselves as seemingly scoring low.

 

You will not be harmed by talking to different banks about opening a new account, and even if they do a search it will not be the same as if you were asking many loan providers about a new loan and they did the same.

 

To help build up a score, you could do things like having a contract mobile phone (which you have) a credit card, even with a low limit (aka Cap One 'accept allcomers' type account) etc.

 

I agree though that this scenario seems very unfair..

[JimTheGent]

Thanks for the reply Johnni. When I was at the Bank the woman turned the screen away from my sight whilst reading the credit file information. Is this normal? It is my information so why should she turn it away?

 

Also, I know Banks have the ability to share information with each other about customers who have overdraft facilities. Is it possible they are using this to share information about customers who are taking legal action against them - thus the reason for only basic accounts being given?

[alanfromderby]

Also, I know Banks have the ability to share information with each other about customers who have overdraft facilities. Is it possible they are using this to share information about customers who are taking legal action against them - thus the reason for only basic accounts being given?

 

As far as I am aware the only means to share such information is via the credit reference companies - which you agree to when you open the account. Any other exchange of information would be in breach of the Data Protection Act.

 

If you are looking for a business bank account - I believe NatWest have one which they advertise as not requiring credit checks. I understand that other users have gone down this route and had no problems opening one.

[mahala]

 

I asked for a savings account to be opened at the same time but the woman told me she did not have time.

 

I have approached another bank and have an appointment on Thursday, but each search reduces your credit score further. Is there anything I can do?

 

Apart from anything else, if she had an attitude like that, I would be complaining to Head Office - she didn't have time to serve a customer? Tsk tsk!

[JimTheGent]

As far as I am aware the only means to share such information is via the credit reference companies - which you agree to when you open the account. Any other exchange of information would be in breach of the Data Protection Act.

 

But could they not share this information o the credit reference system? I.E. customer is in dispute with Bank and sueing Bank over charges. If so would this not raise a red flag to any other Bank?

 

If you are looking for a business bank account - I believe NatWest have one which they advertise as not requiring credit checks. I understand that other users have gone down this route and had no problems opening one.

 

Great information. Thanks for that. I will check it out and let you know if it is as described. That could be just the solution I need. (I love this board)

[alanfromderby]

But could they not share this information o the credit reference system? I.E. customer is in dispute with Bank and sueing Bank over charges. If so would this not raise a red flag to any other Bank?

 

Have a look at the Credit Reference Agencies websites, as these give an explanation of what information is logged. You can also get a copy of your file, and credit score etc., for a small charge.

 

If it is incorrect there are actions you can take - including legal action for removal, and damages if necessary. Also suggest you look elsewhere on the forum (Legalities/DPA?Defaults), and in particular the information over Data Protection Act section 10 letters.

 

If you are interested in the NatWest account I understand that you can even open a business account online.

[JimTheGent]

Thanks for the information. I had already got a copy of my file from Experian and spent time getting erroneous data removed over the pas year. This is now free and clear of any adverse information (and so it should be too). I was stunned when I found so many errors on my file for things which had nothing to do with me. I even took the cleaned up file with me to the Nationwide and they were not interested in looking at it.

 

Do I need to get a copy of the file from every Credit Reference Agency? Even if the Equifax one is clean, is it likely the others have not been updated? I have applied for the statutory reports from Equifax and Experian today, do I need to get the Call Credit one too? At £2 a shot it is not a lot of money but I can think of better ways to spend it.

 

I contacted Nationwide to make a complaint today. Spent an hour on the phone and got absolutely nowhere. They kept warbling about Credit Score Criteria so I asked precisely what the criteria was. They could not give me that information so I told them it was discrimination and I would report them to the OFT. After an hour of this, they said someone form the branch will phone me to sort it out. Still waiting....

 

If they are allowed to specify criteria which must be fulfilled in order to open an account with facilities, then it should be clear what this criteria is so you can take steps to make sure you meet it. Hiding behind the mystical "low credit score" is simply fobbing people off. They even told me to phone Experian for an explanation but I had already done that and Experian told me the "Credit Score" is calculated by each company and is different each time depending on their criteria. Nationwide declined to tell me what this criteria is for a third time.

 

I will be writing to the OFT about this because I am really angry now. Apparently 6 years of positive banking history and paying your bills regularly counts for nothing.

[alanfromderby]

This sounds like a case for the Data Protection Act section 7(1)(d).

[clairus99]

Without having read ALL the replies yet, I just wanted to say that my OH just experienced exactly the same thing (but transferring his account from Nationwide to Abbey).

 

I don't know what they did but they managed to get him exactly the same type of account he has currently with Nationwide.

 

Would it be worth you approaching them again? As they will surely consider you individually if you, "appeal". Have you checked your Credit Record to make sure there's nothing "iffy" on there?

 

** okay, you HAVE got your Credit Record - I'm surprised they didn't want to try and work something out**

[JimTheGent]

Well I spent an hour on the phone today going through various departments to make a complaint. They were rigid and inflexible. Several times they said they were contacting the local branch for further details and came back to me so they could pass me on to someone else. I distinctly got the feeling they simply did not care.

 

I cited discrimination as the reason for my anger. I told them I had no confidence the matter could be resolved at branch level since it was the attitude of the Branch and their inertia which had caused the problem.

 

The result....

 

"The manager from the Branch will ring you to see if it can be sorted out."

 

That phone call never came.

 

So I have written a lengthy letter of complaint (see below) which I intend to send recorded signed for to their Managing Director (who is this does anyone know?) Please post any comments on this letter so I can make changes prior to it being sent. Thanks.

 

Here is the first draft of my letter:

 

I applied to open a current account, savings account and business account with the XXXXXXXX Branch of Nationwide Building Society on 24 May 2006. In my possession I had recent utility bills, a passport, mobile telephone bill (on contract) and two folders containing 6 years Bank statements for two different Banks and covering four different accounts, all of which had a positive credit balance since inception. At least one of these accounts gives me an overdraft facility and Credit/Debit Card facilities. Your clerk told me she was not interested in seeing this information contained - only seeing a recent utility bill and passport.

 

I duly completed the application and was informed I could only have a basic Bank Account. This was not because of any adverse information on my credit files, but because I did not borrow any money, have no credit history and therefore have a low credit score.

 

I contest that:

1) The folders containing my 6 years Bank statements with two other banks prove I do have a history with credit facilities and evidence of good money management

2) I have a mobile telephone contract plus utility bills, broadband bills and similar regular transactions which are paid monthly by direct debit

3) I have credit/debit card and overdraft facilites with at least one Bank

4) I previously had a mortage with the Nationwide which has since been paid in full - again demonstrating I have a positive credit history.

5) In 2002 I settled in full a hired purchase agreement for a motor car - again demonstrating I have a positive credit history.

6) I am on the electoral register which makes me visible to creditors and provides details of my location

7) It is discrimination on your part to reject individuals who can demonstrate they have a record of good credit management but do not borrow frequently.

 

Despite being told there was no adverse information against me on my credit file, the clerk informed me I had a low credit score and this was the sole reason for my application being rejected and the offer of a cashcard only account being extended.

 

I have contacted your customer services department and requested information on how the credit score is calculated so I can take steps to resolve this situation and meet your criteria. My request for this information was denied.

 

This is a formal written request for detailed information on how the credit score which resulted in your refusal to give me full account and credit facilities has been calculated subject to the Data Protection Act Section 7 1(d):

"where the processing by automatic means of personal data of which that individual is the data subject for the purpose of evaluating matters relating to him such as, for example, his performance at work, his creditworthiness, his reliability or his conduct, has constituted or is likely to constitute the sole basis for any decision significantly affecting him, to be informed by the data controller of the logic involved in that decision-taking"

 

Futhermore, I must draw your attention to the fact the computer screen which contained my data was turned away from me so I could not view it when your clerk accessed this information. This is in clear contravention of the Data Protection Act Section 7. 1 ©(i). In addition, the fact I was not told the reasons for you declining my account application and was not given the opportunity or information on how to defend my position is in clear contravention of the Data Protection Act section 7. 1 ©(ii):

 

© to have communicated to him in an intelligible form-

(i) the information constituting any personal data of which that individual is the data subject, and

(ii) any information available to the data controller as to the source of those data

 

Finally, I must turn your attention to the fact I was given no information on the account which finally did get opened and when I asked for a savings account to be opened I was told the clerk did not have time because her next appointment had arrived. I was not given any information or details on who to contact in order to contest this matter or make a complaint. Nor was I given information relating to the credit check or the credit reference agencies. Furthermore, after speaking with your Jan in your telephone based customer services department, I was assured the Manager of the XXXXXXX branch of Nationwide would contact me personally to resolve the issue. As I expected, no such contact has been made and I have absolutely no confidence this matter can be resolved at branch level.

 

I am appalled by the shabby treatment I have received this week by Nationwide plc. In January I chose to use Nationwide as the fiduciary for the Child Trust Fund Accounts of my children. I have always had faith in your expertise as my fiduciary and felt you would be an excellent choice for my children too. However, the shabby and unprofessional treatment I received today in relation to consolidating my accounts into the Nationwide has caused me to question you expertise and shaken my confidence in you.

 

It is my intention to report this matter to the Office of Fair Trading and also the Information Commissioner, both of whom I believe will be interested in your breaches of the Data Protection Act and what I percieve to be discrimination and abuse of authority on your part.

 

Please contact me within 7 working days to advise me of how you intend to resolve this matter.

[JimTheGent]

This topic was closed on 11 March 2019.

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