Citibank Declined My Account Application "For Security Reasons" - Am I a terrorist?

robtrent

I have been chasing up Citibank for 6 weeks after they provisionally approved my savings account application (the 3.3% one featured on this website) but then failed to send me anything.

Upon phoning them today I discover that my application was declined, even after they said it had been approved after I sent them proof of address.

Even more bizarrely, the account was declined for "security reasons". I asked what those reasons were and they said they couldn't tell me, again for "security reasons"!

I have a perfect credit history and have never been in debt or defaulted on anything. I have no criminal record.

What am I a terrorist or something? On what grounds can they deny your application?

Has anyone else had a similar experience?

Porcupine

Egg (owned by Citi) sent me a letter asking for the usual water bill and bank statement, then when I rang them up said they'd changed their mind and needed a certified copy of my passport signed by a lawyer (or other similar person). I sent the water bill and bank statement anyway as they requested in their original letter - it's not worth jumping through their hoops for 0.1% extra - and after about a month they wrote back to say 'the water payment schedule you sent us isn't a real water bill [they only send them every 6 months], and by the way we need a photocopy of your passport'.

I opened an account 0.1% lower at another bank with no problems, and the pennies I'll lose will be less than the bus into town to get a certified copy.

pink_numbers

I had similar experience with Co-op bank. They sent me a letter saying that they wanted further ID (which is expected because I have a block on my credit report after a previous ID theft), but another letter arrived on the same day declining me for an account due to "security reasons".
They are the only bank that refused me straight out, without seeing any ID from me. I also have a clean credit history, never been in debt, never defaulted, never had a problem with any other bank.

pigfish

Hi , have any of you changed address recently ? i my work i have to run background checks on certain memebers of new staff and the first thing that flags is change of address . Employers treat you like a leeper if you move too often , even more so if you are a tenent ..

nilrem_2

robtrent wrote: »

Even more bizarrely, the account was declined for "security reasons". I asked what those reasons were and they said they couldn't tell me, again for "security reasons"!
I have a perfect credit history and have never been in debt or defaulted on anything. I have no criminal record.
What am I a terrorist or something? On what grounds can they deny your application?

IMHO It's disgusting that they can do this and not tell you the reason why, it's like they have judged you and found you guilty without you having any rights at all to speak, it would make me feel like a criminal.
The least they should do is contact you and explain that your ID was insufficient or other and give you a chance to correct it.

Obviously you are better off without them, people will say forget about it but I do understand how you feel, I would feel the same.

OneADay

nilrem wrote: »

IMHO It's disgusting that they can do this and not tell you the reason why, it's like they have judged you and found you guilty without you having any rights at all to speak, it would make me feel like a criminal.

That logic baffles me - if someone is suspected, there is no reason to tell them anything - it only helps any would be criminal clean their tracks more and dupe some other organisation.

If you are refused an account, its more than likely to be credit rating based on various factors, so just get your credit report and see whats going on.

dunstonh

IMHO It's disgusting that they can do this and not tell you the reason why

Its quite possible with the larger firms that the staff members do not get access to the data that has led to that decision. Many moons ago in my banking days at Lloyds, we never saw the data. Just the answer. The electronic money laundering services do tend to only score and give basic information even for those of us that can see the information supplied. So, if there is something on the credit file that indicates an issue, then only the client/customer can view it via their credit file.

bendix

Why do people assume any bank has to give them an account. Any business in the world is completely free to decline taking people on as customers if they want to, and why should they have to give reasons?

nilrem_2

OneADay wrote: »

That logic baffles me - if someone is suspected, there is no reason to tell them anything - it only helps any would be criminal clean their tracks more and dupe some other organisation.

I agree in part but 99.9% of us are not criminals yet feel as though we are treated as such, I just feel that they should give some inkling as to their reasons to their refusal rather than just spouting "Security reasons" which would alarm quite a few people, I am not suggesting that they should give away all their security information!

Porcupine

pigfish wrote: »

Hi , have any of you changed address recently ? i my work i have to run background checks on certain memebers of new staff and the first thing that flags is change of address . Employers treat you like a leeper if you move too often , even more so if you are a tenent ..

Nope, not for ages. And I checked my credit file and there's nothing untoward there.

(Well, except about a dozen ID checks by Royal Sun Alliance for last year's car insurance. While playing around with the price comparison sites I think RSA (or someone underwritten by them) went off and did a credit check for every search I did. So I think I'll be putting in an incorrect name and address for the initial research, and then only the real details when I actually want to buy next time so this doesn't happen.)

But I've opened a few other accounts since then with no problems.

oldwiring

Porcupine wrote: »

. So I think I'll be putting in an incorrect name and address for the initial research, and then only the real details when I actually want to buy next time so this doesn't happen.)

IMHO not a bad idea. O use a stupid name and random address in my area. Woolies or the Kebab shop perhaps!:D