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Lloyds TSB Closed account within days of opening - Advice
robt_2
Posts: 3,401 Forumite
I know this is quite long but please bare with me 
I am writing a letter of complaint and just after some advice.
My partner made an appointment to open a Cash Account at Lloyds TSB. Note that a 'Cash Account' from Lloyds TSB is a current account with Visa debit card. A credit check is required to ensure you are not an undischarged bankrupt and do not have a history of fraud - they are the only two reasons they state that they will not open an account. Promo literature here: http://www.lloydstsb.com/media/lloydstsb2004/pdfs/cash_account_wp_2Nov.pdf IMO it is a bad choice of name for an account, but anyway...
They went to the appointment to open the account and all was well. They got home and I discovered that the bank had opened a Classic account for them ie not what the appointment was for and not what was requested. My partner was suprised they had passed the credit check and thought nothing of it for a few days. Cards, PINs, paying in books etc arrived through the post. A week later, my partner went into a branch to pay some money in only to be told that the account had been closed. The branch could give no explanation so suggested ringing phonebanking to ask.
They confirmed that the account had been closed because head office had decided my partner had not passed the credit check despite the branch saying they had.
My partner then went into the branch to speak to the guy who opened his account and he said the same - and asked for the debit card back. His only advice was to 'try another bank'.
An appointment was made at another branch (the branch I use myself, which has fantastic staff) to open a Cash Account. Turn upto the appointment and told that no account can be opened as the bank had refused my partner previously on their credit check. Even though you don't need any form of credit score for a Cash Account, and even though the full credit check was not consented to.
The main points that I see are:
1) Running a (full) credit search that my partner did not consent to in the first place
2) Mis-selling
3) Refusing to open another account because of their own mistake.
Has anyone got any advice?
Would the Financial Ombudsman Service take an interest in the mis-selling? I know it is not the first thing to do but I will certainly mention it in the letter.
I am writing a letter of complaint and just after some advice.
My partner made an appointment to open a Cash Account at Lloyds TSB. Note that a 'Cash Account' from Lloyds TSB is a current account with Visa debit card. A credit check is required to ensure you are not an undischarged bankrupt and do not have a history of fraud - they are the only two reasons they state that they will not open an account. Promo literature here: http://www.lloydstsb.com/media/lloydstsb2004/pdfs/cash_account_wp_2Nov.pdf IMO it is a bad choice of name for an account, but anyway...
They went to the appointment to open the account and all was well. They got home and I discovered that the bank had opened a Classic account for them ie not what the appointment was for and not what was requested. My partner was suprised they had passed the credit check and thought nothing of it for a few days. Cards, PINs, paying in books etc arrived through the post. A week later, my partner went into a branch to pay some money in only to be told that the account had been closed. The branch could give no explanation so suggested ringing phonebanking to ask.
They confirmed that the account had been closed because head office had decided my partner had not passed the credit check despite the branch saying they had.
My partner then went into the branch to speak to the guy who opened his account and he said the same - and asked for the debit card back. His only advice was to 'try another bank'.
An appointment was made at another branch (the branch I use myself, which has fantastic staff) to open a Cash Account. Turn upto the appointment and told that no account can be opened as the bank had refused my partner previously on their credit check. Even though you don't need any form of credit score for a Cash Account, and even though the full credit check was not consented to.
The main points that I see are:
1) Running a (full) credit search that my partner did not consent to in the first place
2) Mis-selling
3) Refusing to open another account because of their own mistake.
Has anyone got any advice?
Would the Financial Ombudsman Service take an interest in the mis-selling? I know it is not the first thing to do but I will certainly mention it in the letter.
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Comments
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This is not misselling.
A classic account is a better account free of charge so I don't really see any problem with that.
The account opener would have asked her either on screen her authority to credit score or got her to sign an authority.
The bank has the perfect right to refuse anyone an account.
Get copies of her credit files to see if there is anything on there preventing her getting an account.
If there is anything dodgy which we have no knowledge on here then the bank will not tell her the reason for closure for fear of tipping her off under the Proceeds of crime act.
If it has been closed by Head office then the branch will not know any more than you about the reason why.
In this case I think the Financial ombudsman will not entertain your complaint.0 -
jonesMUFCforever wrote: »This is not misselling.
A classic account is a better account free of charge so I don't really see any problem with that.
The account opener would have asked her either on screen her authority to credit score or got her to sign an authority.
The bank has the perfect right to refuse anyone an account.
Get copies of her credit files to see if there is anything on there preventing her getting an account.
If there is anything dodgy which we have no knowledge on here then the bank will not tell her the reason for closure for fear of tipping her off under the Proceeds of crime act.
If it has been closed by Head office then the branch will not know any more than you about the reason why.
In this case I think the Financial ombudsman will not entertain your complaint.
I beg to differ on that, although mis-selling might be the wrong word. The employee opening the account KNEW that a Cash Account had been requested and ignored this then proceeded to to open an account which was specifically not wanted. That is the problem with it It stinks of the salesperon (sorry, I mean employee) being on commission.
I think you ignored the section where I said that there is nothing to the credit check other than checking for fraud and undischarged bankruptcy of which neither are on the credit file (fact, not guess). Indeed my partner passed the credit check which was run in the branch.
I'm not disputing that they can refuse anyone they want for an account, but if it was not for the wrong account being opened in the first place then none of this would have happened. 0 -
1) (and probably most important) There is nothing other than a full credit search. While you are right that some current accounts aren't scored, it is still a full credit search that is done as the alternative is only an ID check which wouldn't show bankruptcy.1) Running a (full) credit search that my partner did not consent to in the first place
2) Mis-selling
3) Refusing to open another account because of their own mistake.
Has anyone got any advice?
2) This is hard for you to say. Chances are the advisor sold the benefits and therefore your partner applied for the better account. It's unlikely the bank opened an account they didn't have a signature for.
There are further searches done overnight which can decline an account opening, and it sounds like it must be these which were the problem. In this case your point 3) is invalid, as this would stop your partner from opening any type of current account.0 -
1) There are further searches done overnight which can decline an account opening, and it sounds like it must be these which were the problem. In this case your point 3) is invalid, as this would stop your partner from opening any type of current account.
do you work for lloyds? any idea how they are with appeals once they declined, for Vantage current a/c?
2010 - year of the troll
Niddy - Over & Out :wave:
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1) (and probably most important) There is nothing other than a full credit search. While you are right that some current accounts aren't scored, it is still a full credit search that is done as the alternative is only an ID check which wouldn't show bankruptcy.
2) This is hard for you to say. Chances are the advisor sold the benefits and therefore your partner applied for the better account. It's unlikely the bank opened an account they didn't have a signature for.
There are further searches done overnight which can decline an account opening, and it sounds like it must be these which were the problem. In this case your point 3) is invalid, as this would stop your partner from opening any type of current account.
I understand what you are saying about a full credit search, I have used some wrong terminology. However I would expect another to be carried out for the second account rather than to be told "you can't because you failed one" as there is no minimim 'score' required for the bank account which was requested.
RE point 2, it is not hard for me to say - all along the employee had stated that a cash account was being opened and it wasn't. Thats why I said earlier that it stinks of a salesman on commission
I understand the further searches could be done overnight however they were for an account which was not requested so should be null and void, and at a push, removed from credit files as they should never have taken place.
I think the whole problem is the person who opened the account. The Cash Account was specifically requested as my partner has a low credit score (which does not matter for the account requested).
Anyway, letter has been written now 0 -
I opened my Lloyds TSB platinum account back in early January in person at the branch. On reviewing my Experian credit file, the search was an unrecorded enquiry search. I was surprised as i was expecting a hard search but this is a soft search which means other Lenders cannot view this search.
Is this the norm having unrecorded enquiry credit search when applying for current accounts? Or am I lucky?0 -
noah271007 wrote: »I opened my Lloyds TSB platinum account back in early January in person at the branch. On reviewing my Experian credit file, the search was an unrecorded enquiry search. I was surprised as i was expecting a hard search but this is a soft search which means other Lenders cannot view this search.
Is this the norm having unrecorded enquiry credit search when applying for current accounts? Or am I lucky?
Hi Tom a little Lucky. Did you get a Cheque Guarantee?
When can I have a butcher's at the new letter?0 -
Hi Tom a little Lucky. Did you get a Cheque Guarantee?
When can I have a butcher's at the new letter?
Hi Rich.
£250 cheque guarantee!
Wait until deadline are up, or straight away if they write to you (v.likely with standard fob off letter). Then you can stab them with new letter! LOL;)0 -
Bloody hell £250. Check your PM.0
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