Building Society refused to open savings account and returned his cheque!

isaminx

My close friend wanted to open a savings account with a well-known building society. He took in the cheque to open the account, two recent utility bills, drivers license and passport (expired, he doesn't travel any more). He filled in the application form for a 50+ savings account.

Three days later, the BS send him a letter , saying that "Unfortunately, on this occasion, we are unable to open the account", and returned his cheque to him.

He went in to see the manager, who had handled his application, and asked why he had been refused. She went into another room, then came back, saying she had made a phonecall, and that the reason she had been given was that he 'didn't meet the criteria', or similar words.

He knows that the BS checked out his credit history with Experian.
My friend is a man of independant means, and the only cedit he has ever had was for his current car (interest-free, 2002-2004). He has no CCJs and lived at the same address since 1957. The manager seemed to be concerned that his passport was out-of-date.

Has anyone had a similar experience? Can you shed any light on why this could have happened, or how to proceed. He has just been left to wonder why???? Fancy them not wanting his money!

amcluesent

> Fancy them not wanting his money!<

They all rank the desirability of customers from 'plums' downwards.

Perhaps the cost of offering counter service for few quid in his account didn't look that clever, as it was obvious there's minimal chance of a profit from loans and other money spinning products.

isaminx

Thanks, Amcluesent, that's ineresting. Perhaps I should have said that he was depositing several thousands,; spreading his money to avoid loss in such an uncertain time. Can you tell me if all banks do credit checks, even when the customer is not requesting a loan? Is there any way he can find out the reason for refusal?

AdrianHi

I will make a guess he failed the "money laundering" rules with inadequate identification and possibly size of deposit.
Was he depositing £20,000 or more?
I think that triggers more money laundering checks to be done.
If he had gone in with £2000 and in date identification I bet he will have had no trouble at all.
See end of page 4 and page 5 here:
http://www.moneymadeclear.fsa.gov.uk/pdfs/bank_accounts.pdf

opinions4u

I cannot believe they didn't refuse to open the account straight away.

Out of date ID is a clear breach of money laundering rules.

johnmoney05

Why your friend took his expired passport with him? Will you travel with your expired passport?

Two recent utility bills, driving license are more than enough!You just gave them reason to reject the application.

Some people in this world are quite happy to run their authority if they have chance! They don't even realise that they are in fact quite stupid.

cos69

Agree - why create problems for yourself by taking along invalid documents which is what an expired passport would be classed as.

isaminx

Many thanks for all your replies. I'm sure my friend will find them helpful. Best wishes, Isaminx.