Does the bank need to know your employer?

Lady_K

Is it normal to get a letter from the bank asking for details of your employer, address etc, your job title how long you have worked for them?

LittleVoice

Not normal "out of the blue" in my experience but are you close to your overdraft limit? Have you asked to increase it? I guess it comes under the heading of "know your client". Have you had any unusually large amounts passing through your account recently?

_Andy_

Lady_K wrote: »

Is it normal to get a letter from the bank asking for details of your employer, address etc, your job title how long you have worked for them?

In what context?
Might be easier if you explained your actual situation.

Lady_K

My daughter has just recently had her student status removed from her Halifax current account as she graduated in the summer, she applied for it to be continued for the next year but they wrote back saying that as she had student account status for 6 years she couldnt have the extra year they give for student account status once graduated because she had maximum years allowance. Once it had been taken off they wrote back confirming the removal and in the same letter they asked for these details. Why should she need to let them know her job title too? It just seemed a little invasive to me. If her money is being paid into her account why do they need to know all of this? She had her first payment from work today.

LittleVoice

Can see the reason for asking how long she has worked for them given that she has had the student account facility for so long.

As I wrote in earlier post, they would probably claim it was "know your client" information.

Did they ask for her phone number too? That would make sense - to be able to contact her if there was a query regarding a dubious transaction on her account.

ShelfStacker_3

Most likely "know your customer", as in the bank need to know who they're dealing with. Also possibly so they can see what ability she has to pay off any debts with them.

Extant

It is not mandatory to record such information, but each bank may set standards above and beyond FSA guidelines.

Lady_K

They didn't ask for her telephone number and she has no debts with them as the student overdraft she did have was cleared before the student status was removed because they would have started to charge her for it.

I see what you mean about checking how long she has been with her employer, I didnt think of that but through her university years she had to prove that she was still a student every year anyway. She went to the bank to get her interest changed from gross to ordinary now shes employed so she took the letter with her and gave them the info they requested. It just seemed a bit to probing to me.

olly300

Lady_K wrote: »

They didn't ask for her telephone number and she has no debts with them as the student overdraft she did have was cleared before the student status was removed because they would have started to charge her for it.

I see what you mean about checking how long she has been with her employer, I didnt think of that but through her university years she had to prove that she was still a student every year anyway. She went to the bank to get her interest changed from gross to ordinary now shes employed so she took the letter with her and gave them the info they requested. It just seemed a bit to probing to me.

It helps them target products at you and is useful for money laundering.

If the employer pays you straight into your account they can see who it is anyway without asking.

However to be honest it's asking who my employer was a waste of time for the banks I've joined as before I was self-employed I changed employers often.

Lady_K

What do you mean is useful for money laundering?

mrmajika

Lady_K wrote: »

What do you mean is useful for money laundering?

All banks are obligated by the Proceeds of Crime Act to notify the relevant authority of suspicious account activity relating to money laundering.

The FSA introduced as system known as KYC - Know Your Customer - to help with this.