How much personal information should we give to banks ?

Consumerist

I recently applied for a NatWest Cash ISA Plus by telephone but the process ground to a halt because I refused to give them information, regarding my marital status and number of dependants, on the grounds that I considered such information to be irrelevant for the purpose.

And why does the bank need to know whether I own my home in order to apply for an ISA ?

I asked to speak to a manager who explained that they needed to keep their information database up to date.

Not satisfied with this response, I asked to make a formal complaint and was passed to their complaints-handling team. Their excuse for asking or this information was security. A date or place of birth or a mother's maiden name will never change but marital status and the number of dependants are likely to change over time; do the banks feel they have the right to be kept informed of such changes ? Why ?

It seems clear to me that they don't really know why they insist on this sort of information except to be unreasonably intrusive or, more likely, for marketing purposes.

NatWest have agreed to explain their position in writing so that I can lodge a complaint with the Ombudsman. Frankly, they didn’t seem to care. Perhaps they know something I don't know or perhaps it's just their customary arrogance.

How long before banks will need to see our medical records before accepting our savings ?

For the record, I applied on the internet to another provider who opened the ISA within minutes (subject to ID checks) without needing any information about my marital status or depedents.

Should we give unnecessarily intrusive personal information to banks ?
.

simon_templar_2

It is part of KYC (know your customer). They need to know certain bits of info for opening accounts, savings for example needs less than a loan or a bank account. Banks will have their processes and requirements. At the end of the day you can decide not to bank with them and they can do likewise.

oldfella

its probably to better identify you as a sales target - I agree with you, its unnecessary for a savings account

SavySaver_2

I don't understand why you would not open a bank account due to the fact you did not want to divulge your marital status or number of dependants. This sounds very suspicious to me. Have you got something to hide?
If you are trusting a bank to open an ISA for you and deposit a large amount of money with them then why wouldn't you trust the same bank with your details? If you do not want the bank to contact your for marketing purposes then you simply let them know this at the account opening stage and they can not contact you. You are just being very sensitive with this. You are now having to waste your valuable time dealing with a lengthy complaint and having to go elsewhere to open your ISA. Hope it was worth it!

Kavanne

I may work or have worked for RBS in the team you spoke to.

Our computer system will not let us proceed without answers to those questions. It is physically impossible. So unfortunately if you will not answer we cannot proceed with an application

Lokolo

Tbh I just love the way the OP made a formal complaint about it when he isn't even a customer yet. I suspect he wanted compensation too! :rotfl:

withnell

SavySaver wrote: »

I don't understand why you would not open a bank account due to the fact you did not want to divulge your marital status or number of dependants. This sounds very suspicious to me. Have you got something to hide?
If you are trusting a bank to open an ISA for you and deposit a large amount of money with them then why wouldn't you trust the same bank with your details? If you do not want the bank to contact your for marketing purposes then you simply let them know this at the account opening stage and they can not contact you. You are just being very sensitive with this. You are now having to waste your valuable time dealing with a lengthy complaint and having to go elsewhere to open your ISA. Hope it was worth it!

If it's not for marketing, what use is it? I don't have anything to hide, but why is my annual income relevant for a savings account? It's all about marketing - if you tell them you earn £1 a month, they don't send you anything!

Kavanne

withnell wrote: »

If it's not for marketing, what use is it? I don't have anything to hide, but why is my annual income relevant for a savings account? It's all about marketing - if you tell them you earn £1 a month, they don't send you anything!

natwest don't ask for employment/income details for savings accounts.

Reaper

I agree with the OP. While I'm not entirely familiar with it my understanding of the Data Protection Act is that information must be "relevant" and can only be collected for the specified purpose, whereas you just know this is going to be used to send you targeted junk mail not for running the account.

Saying their computer systems require it is no excuse.

If you want to pursue it then I'd try writing to them and challenge them to justify it under the Act. They will have a compliance officer whose job is to make sure they follow the rules.

willo65

why doesn't the OP just go somewhere else and forget about it? I never understand why people insist on being difficult other than having excessive amounts of time on their hands. If I don't like Tesco's policies I'll go to morrisons, not complain to Tesco.

Kavanne

Sorry, reaper, there's nothing my potential colleague on the line could have done, we are the little men. The system would NOT let them continue and there's nothing they can do to override that except put an answer in....