refused basic bank account

yorkshireterr

Hi,
i have a friend that has been refused a basic easycash account by the halifax. Although she provided them with everything they asked for including a passport. She just wants somewhere to have her benifits paid in and to use the cashmachines. Internet banking would also be nice. Any help please would be appreciated.

mrbadexample

Well, when I finished being a lazy scrounging student (ok, it was about 1994), I had maxed out my Natwest account, and was in a bit of bother - hadn't got a job yet so was on the dole, needed a new bank account to pay car insurance by direct debit, I went into Barclays and said "I need a current account, I don't want an overdraft, I don't want a cheque book, just let me take out what I put in". And they said yes. (Lloyds refused).

Just go in and ask, if they say no, move on to the next one. Someone's got to say yes sooner or later?

grumbler

Post Office™ card account :

The Post Office™ card account is a new type of account that can only be used to receive benefit, state pensions and new tax credit payments. No other payments, such as wages, can be paid into it. This account may suit you if you want a simple account that won't let you go overdrawn or incur any charges. No credit checks will be carried out when you open this account.

Cash withdrawal
A Post Office™ card account will allow you to take cash out, free of charge, at any Post Office™ branch using a plastic card and Personal Identification Number (PIN). Your card and PIN will also allow you to request a balance enquiry at any Post Office™ branch.

Post Office™ card account is offered by Citibank International Plc through Post Office Ltd.

Rafter

Any idea why she was refused? Might be worth getting a copy of credit report and she should get herself on the electoral roll for wherever she is living.

Banks don't like invisible people! If you leave a big enough footprint their computers get more comfortable about you being who you say you are.

Otherwise the post office account looks like the only way to go.

R.

JoseChungsDoomsday

she could go for a halifax instant saver, they let you set up DD's on it and it pays interest

Chadsman

I thought the whole point of a 'basic bank account' was that anyone who could prove their identity would not be turned down regardless of the credit score.
Is that incorrect?

Darryl

Any bank or building society that subscribes to the Banking Code must offer a basic bank account (i.e. one that offers direct debits, standing orders, but offers no credit facilities like an overdraft).

Now, Halifax do subscribe to the Banking Code (see this list: http://www.bankingcode.org.uk/supportlist.htm, and http://www.bankingcode.org.uk/subs&sis.htm). So they should offer your friend this type of account if it is suitable for them.

If they don't they are in breach of the code, and can be reported to the Banking Code Standards Board. Your friend may even receive compensation for the bank's breach of the code.

See this report for the BCSB's survey (and how unhappy they are with banks that don't follow the code): http://www.bankingcode.org.uk/press/BASIC%20BANK%20ACCOUNTS%20release%20181104%20-%20FINAL%20JCD.doc

For a list of accounts, see this link: http://www.fsa.gov.uk/consumer/pdfs/bank_account.pdf

My brother (who receives benefits) has a basic bank account (with HSBC). I'd advise going for one like his, as it offers a 'buffer zone'. This means, although there is no overdraft, if you've on got a few pounds left in the account cash machines will let you withdraw £10. The FSA table shows which ones offer such buffer zones.
I see that Halifax easycash accounts don't offer buffer zones, AND charge £39 if a direct debit is not paid! One to avoid if you ask me... anyway.

That said, ,I'd still report them to the BCSB and make them suffer for treating your friend so badly.

HTH

Darryl.

yorkshireterr

thank you to all who posted replies this site never fails to come up with the goods, once again thanks

grumbler

Darryl wrote:

Any bank or building society that subscribes to the Banking Code must offer a basic bank account...

Could you quote some specific part of Banking Code stating that banks must open basic accounts for everybody?

Rafter

Nothing in the banking code

http://www.bba.org.uk/content/1/c4/52/27/BankingCode2005.pdf

here

about basic bank accounts being guaranteed. Just the type of facilities they will offer.

As Darryl says though, my understanding is that if you can proove who you are (passport or electoral register entry) have a uk address and meet some other basic requirements, you should not normally be refused one.

R.

Darryl

I stand corrected. There is no 'right' to have a basic bank account. However, the banking code says that banks promise to:

• assess whether your needs are suited to a basic bank account (if we offer one) and if they are we will offer you this product;
• offer you a basic bank account if you specifically ask, and meet the qualifying conditions for one;

Not exactly a 'right', I agree. Generally though, basic bank account applications will only be refused if your records show that you are an undischarged bankrupt, have a record or fraud, or a record of bad debts.

And if you go in asking for one, you will normally get it (banks after all, do like to look after your money...).

Sorry for any confusion.

Darryl.