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  • FIRST POST
    • krrcwl
    • By krrcwl 12th Jun 17, 1:58 PM
    • 10Posts
    • 3Thanks
    krrcwl
    TSB Classic Plus application - *warning*
    • #1
    • 12th Jun 17, 1:58 PM
    TSB Classic Plus application - *warning* 12th Jun 17 at 1:58 PM
    After seeing the MSE deal (on the MSE compare-best-bank-accounts page - can't post a link, not allowed apparently) for the TSB Classic Plus account in the regular Money Tips email, I decided to switch one of my accounts to it. I checked all the conditions highlighted on the MSE summary, and on the 26th May went ahead with the online application, via the correct link, and everything was good, and I had a sort code and account number to begin organising automatic payments from other accounts, etc. A couple of days later I started the switch process from my existing account.

    Over the next few days, I noticed that I hadn't receive any notifications about the progress of this, and eventually (on 2nd June) I received a letter saying that, after subsequent checks, my account (and any other accounts I happened to hold with TSB) would be closed, with no indication about what this issue might be. A couple of days later, I phoned to attempt to find out what had gone wrong, but I was told that I couldn't be told this because of "data protection", despite it being my data*.

    While it wasn't mentioned explicitly, it became obvious that a credit check had been carried out, and was most likely the reason for the rejection. I was then told that they 'were obliged' to do a credit check for people opening any account with them - surely this is bank policy rather than any legal prerogative, an ID check yes, but not a credit check, I was not asking for credit (no overdraft requested). I explained that at no point in the online application process was this mentioned, because if it had, I would not have bothered to carry on (apparently, it was buried somewhere in the T&Cs that no-one ever reads.) And then, why wasn't the credit check done up front at the time of application? This requires manual processing at TSB, despite the fact that most other banks manage to do it automatically. I wasted my time setting things up elsewhere which I now have to revert.


    Anyway, my warning is this - if you have a less than average credit rating, it is unlikely that you'll be accepted, and furthermore, you won't know you've been rejected for about a week.



    * I wonder if a FOI request is in order!
Page 1
    • SnowTiger
    • By SnowTiger 12th Jun 17, 3:00 PM
    • 3,035 Posts
    • 2,000 Thanks
    SnowTiger
    • #2
    • 12th Jun 17, 3:00 PM
    • #2
    • 12th Jun 17, 3:00 PM
    At the top of the application page it says:

    Before you start

    It takes about 10 minutes to apply and you'll need to have a few bits of information to hand.

    Please be aware that we will refer your details to a credit reference agency, where your credit worthiness will be scored as part of the application process.
    Even though you didn't specifically ask for an overdraft, there's a possibility that you would create one.

    A standard bank account usually comes with an off-line debt card, which means the card can be used without the card machine checking with your bank that you have funds to cover the transaction.
    • eskbanker
    • By eskbanker 12th Jun 17, 3:56 PM
    • 5,466 Posts
    • 5,269 Thanks
    eskbanker
    • #3
    • 12th Jun 17, 3:56 PM
    • #3
    • 12th Jun 17, 3:56 PM
    Anyway, my warning is this - if you have a less than average credit rating, it is unlikely that you'll be accepted, and furthermore, you won't know you've been rejected for about a week.
    Originally posted by krrcwl
    And my warning is this: never listen to people who extrapolate their own personal experiences and project them onto others as if they'll automatically have the same outcome simply because of one common aspect.

    I wonder if a FOI request is in order!
    Originally posted by krrcwl
    No need to wonder, it isn't, as it would be a complete waste of time - the scope of the Freedom of Information Act is public authorities only, not banks.

    However, nothing to stop you from submitting a Subject Access Request under the Data Protection Act if you wish to access your personal data....
    • Shakin Steve
    • By Shakin Steve 12th Jun 17, 8:46 PM
    • 928 Posts
    • 662 Thanks
    Shakin Steve
    • #4
    • 12th Jun 17, 8:46 PM
    • #4
    • 12th Jun 17, 8:46 PM
    Is it just me? How can people expect to apply for a bank account without some kind of credit check being carried out? The mind boggles.
    I came into this world with nothing and I've got most of it left.
    • Ben8282
    • By Ben8282 13th Jun 17, 1:12 AM
    • 2,003 Posts
    • 876 Thanks
    Ben8282
    • #5
    • 13th Jun 17, 1:12 AM
    • #5
    • 13th Jun 17, 1:12 AM
    As you admit to having a less than average credit rating then I wonder why you were surprised that the application was declined.
    • krrcwl
    • By krrcwl 13th Jun 17, 10:04 AM
    • 10 Posts
    • 3 Thanks
    krrcwl
    • #6
    • 13th Jun 17, 10:04 AM
    • #6
    • 13th Jun 17, 10:04 AM
    At the top of the application page it says:

    Even though you didn't specifically ask for an overdraft, there's a possibility that you would create one.

    A standard bank account usually comes with an off-line debt card, which means the card can be used without the card machine checking with your bank that you have funds to cover the transaction.
    Originally posted by SnowTiger
    That information was either not present, or not prominent when I made my application - I would expect an ID check, yes, but not a credit check.

    Also, since when does any cash machine dispense cash without checking the available balance first? Nonsense.
    • krrcwl
    • By krrcwl 13th Jun 17, 10:06 AM
    • 10 Posts
    • 3 Thanks
    krrcwl
    • #7
    • 13th Jun 17, 10:06 AM
    • #7
    • 13th Jun 17, 10:06 AM
    And my warning is this: never listen to people who extrapolate their own personal experiences and project them onto others as if they'll automatically have the same outcome simply because of one common aspect.

    No need to wonder, it isn't, as it would be a complete waste of time - the scope of the Freedom of Information Act is public authorities only, not banks.

    However, nothing to stop you from submitting a Subject Access Request under the Data Protection Act if you wish to access your personal data....
    Originally posted by eskbanker
    I think the implied point is, you risk getting a credit search on your record which will affect your changes elsewhere, etc, etc.
    • krrcwl
    • By krrcwl 13th Jun 17, 10:06 AM
    • 10 Posts
    • 3 Thanks
    krrcwl
    • #8
    • 13th Jun 17, 10:06 AM
    • #8
    • 13th Jun 17, 10:06 AM
    Is it just me? How can people expect to apply for a bank account without some kind of credit check being carried out? The mind boggles.
    Originally posted by Shakin Steve
    I would expect an ID search, but if I'm not asking for credit, why do a credit search?
    • krrcwl
    • By krrcwl 13th Jun 17, 10:07 AM
    • 10 Posts
    • 3 Thanks
    krrcwl
    • #9
    • 13th Jun 17, 10:07 AM
    • #9
    • 13th Jun 17, 10:07 AM
    As you admit to having a less than average credit rating then I wonder why you were surprised that the application was declined.
    Originally posted by Ben8282
    Because I successfully opened an account with Halifax 6 months ago, when my credit-worthiness would probably have been slightly worse.
    • krrcwl
    • By krrcwl 13th Jun 17, 10:10 AM
    • 10 Posts
    • 3 Thanks
    krrcwl
    Actually, the main point I intended to make, which I completely forgot about during the course of writing, is that MSE normally flags up products or services that would require a good credit rating, so you don't waste your time, but it hasn't in this case.
    • Yorkshire Pud
    • By Yorkshire Pud 13th Jun 17, 10:44 AM
    • 743 Posts
    • 466 Thanks
    Yorkshire Pud
    I would expect an ID search, but if I'm not asking for credit, why do a credit search?
    Originally posted by krrcwl
    See #2 this message isn't long enough it is now
    • Yorkshire Pud
    • By Yorkshire Pud 13th Jun 17, 10:49 AM
    • 743 Posts
    • 466 Thanks
    Yorkshire Pud
    Actually, the main point I intended to make, which I completely forgot about during the course of writing, is that MSE normally flags up products or services that would require a good credit rating, so you don't waste your time, but it hasn't in this case.
    Originally posted by krrcwl
    I think most banks require a good credit rating for products. That's the norm and doesn't need stating, makes sense really.

    mse often flags up the ones that offer products to those with less than good credit ratings.

    Best adjust your expectations to fit the system because the system won't adjust to fit yours!
    • Thrugelmir
    • By Thrugelmir 13th Jun 17, 10:58 AM
    • 55,143 Posts
    • 48,335 Thanks
    Thrugelmir
    I would expect an ID search, but if I'm not asking for credit, why do a credit search?
    Originally posted by krrcwl
    Banks are in business to make a profit. Quality of the customer matters. Opening bank accounts isn't simply a numbers game.
    “ “Bull markets are born on pessimism, grow on skepticism, mature on optimism, and die on euphoria. The time of maximum pessimism is the best time to buy, and the time of maximum optimism is the best time to sell.” Sir John Marks Templeton
    • krrcwl
    • By krrcwl 13th Jun 17, 11:11 AM
    • 10 Posts
    • 3 Thanks
    krrcwl
    Banks are in business to make a profit. Quality of the customer matters. Opening bank accounts isn't simply a numbers game.
    Originally posted by Thrugelmir
    Well, I was mainly going to use it as a savings account, so their loss.
    • eskbanker
    • By eskbanker 13th Jun 17, 11:30 AM
    • 5,466 Posts
    • 5,269 Thanks
    eskbanker
    I think the implied point is, you risk getting a credit search on your record which will affect your changes elsewhere, etc, etc.
    Originally posted by krrcwl
    There's no need to imply anything - you WILL get a credit search when applying for this (or any other) current account!

    Well, I was mainly going to use it as a savings account, so their loss.
    Originally posted by krrcwl
    On the contrary, their gain - if you'd been using it as a savings account then they'd be paying you interest without earning anything from you in fees, etc, so it's not their loss at all. If they were making money from people using these as savings accounts, why would they cap the interest-earning balances?
    • YorkshireBoy
    • By YorkshireBoy 13th Jun 17, 11:31 AM
    • 29,397 Posts
    • 17,173 Thanks
    YorkshireBoy
    Well, I was mainly going to use it as a savings account, so their loss.
    Originally posted by krrcwl
    There's only one loser here, and its not TSB.

    As I see it, they're £130 up already. Plus they can get cash on the market for a lot less than the 3% AER you would have charged them.

    You haven't really thought this through have you.
    • B_G_B
    • By B_G_B 13th Jun 17, 12:46 PM
    • 378 Posts
    • 384 Thanks
    B_G_B
    After seeing the MSE deal (on the MSE compare-best-bank-accounts page.............

    While it wasn't mentioned explicitly, it became obvious that a credit check had been carried out.......

    Anyway, my warning is this - if you have a less than average credit rating, it is unlikely that you'll be accepted, and furthermore, you won't know you've been rejected for about a week.
    Originally posted by krrcwl
    Point number 5.
    http://www.moneysavingexpert.com/banking/compare-best-bank-accounts
    • eskbanker
    • By eskbanker 13th Jun 17, 12:52 PM
    • 5,466 Posts
    • 5,269 Thanks
    eskbanker
    At the top of the application page it says:

    Even though you didn't specifically ask for an overdraft, there's a possibility that you would create one.

    A standard bank account usually comes with an off-line debt card, which means the card can be used without the card machine checking with your bank that you have funds to cover the transaction.
    Originally posted by SnowTiger
    That information was either not present, or not prominent when I made my application - I would expect an ID check, yes, but not a credit check.

    Also, since when does any cash machine dispense cash without checking the available balance first? Nonsense.
    Originally posted by krrcwl
    Who said anything about cash machines? The point SnowTiger correctly made was that card machines (i.e. point of sale terminals used by retailers, etc) will sometimes process transactions without contacting the bank for real-time online authorisation, thereby potentially taking cardholders into the red even if they don't have an arranged overdraft facility.
    • Shakin Steve
    • By Shakin Steve 13th Jun 17, 3:59 PM
    • 928 Posts
    • 662 Thanks
    Shakin Steve
    Contactless transactions can be made without any authorisation from the bank, and if you make three or four of those before a PIN is required, you could easily become overdrawn.
    I came into this world with nothing and I've got most of it left.
    • Heng Leng
    • By Heng Leng 13th Jun 17, 5:58 PM
    • 4,100 Posts
    • 1,254 Thanks
    Heng Leng
    Contactless transactions can be made without any authorisation from the bank, and if you make three or four of those before a PIN is required, you could easily become overdrawn.
    Originally posted by Shakin Steve
    Thats simply not true - the card can be set to always go online (even with contactless transactions) otherwise Nationwide FlexBasic and pre-pay issuers wouldn't offer the facility.

    Reading between the lines, the OP actually has an issue with being accepted then declined.

    I had a similar experience (with TSB) whereby they opened the account, then froze it, pending paper ID. As it had funds, I was basically forced to take an afternoon off work to go into a branch. Luckily, I was able to terminate my account switch though.
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