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Bank of Scotland and Non Ordinarily resident Status
rt29781
Posts: 21 Forumite
For years we have had business and personal bank accounts with the BofS. We now live permanently in France and recently we have
been told that we cannot open any new accounts due to our living in France. We can however have an offshore account with the BofS
in the Isle of Man but that is not a safe option as their bank guarantees are incapable of paying out if a large bank like BofS
goes insolvent. So we said no thanks and moved to HSBC. However I don't think what the BofS is doing is strictly legal. There is
new consumer law in the UK that prevents "aggressive" acts forcing a customer to do something they would not normally choose to
do. The forcing of us to go to an offshore account I think may be such an aggressive act.(The Consumer Protection from Unfair
Trading Regulations 2008) (relevant section below)
Any lawyers on this forum? Anyone had the same treatment from BofS? Any advice?
The Consumer Protection from Unfair Trading Regulations 2008
7.—(1) A commercial practice is aggressive if, in its factual context, taking account of all of its features and circumstances—
(a) it significantly impairs or is likely significantly to impair the average consumer’s freedom of choice or conduct in relation
to the product concerned through the use of harassment, coercion or undue influence; and
(b) it thereby causes or is likely to cause him to take a transactional decision he would not have taken otherwise.
2) In determining whether a commercial practice uses harassment, coercion or undue influence account shall be taken of—
(a) its timing, location, nature or persistence;
(b) the use of threatening or abusive language or behaviour;
(c) the exploitation by the trader of any specific misfortune or circumstance of such gravity as to impair the consumer’s
judgment, of which the trader is aware, to influence the consumer’s decision with regard to the product;
(d) any onerous or disproportionate non-contractual barrier imposed by the trader where a consumer wishes to exercise rights under
the contract, including rights to terminate a contract or to switch to another product or another trader; and
(e) any threat to take any action which cannot legally be taken.
(3) In this regulation—
(a) “coercion” includes the use of physical force; and
(b) “undue influence” means exploiting a position of power in relation to the consumer so as to apply pressure, even without using
or threatening to use physical force, in a way which significantly limits the consumer’s ability to make an informed decision.
been told that we cannot open any new accounts due to our living in France. We can however have an offshore account with the BofS
in the Isle of Man but that is not a safe option as their bank guarantees are incapable of paying out if a large bank like BofS
goes insolvent. So we said no thanks and moved to HSBC. However I don't think what the BofS is doing is strictly legal. There is
new consumer law in the UK that prevents "aggressive" acts forcing a customer to do something they would not normally choose to
do. The forcing of us to go to an offshore account I think may be such an aggressive act.(The Consumer Protection from Unfair
Trading Regulations 2008) (relevant section below)
Any lawyers on this forum? Anyone had the same treatment from BofS? Any advice?
The Consumer Protection from Unfair Trading Regulations 2008
7.—(1) A commercial practice is aggressive if, in its factual context, taking account of all of its features and circumstances—
(a) it significantly impairs or is likely significantly to impair the average consumer’s freedom of choice or conduct in relation
to the product concerned through the use of harassment, coercion or undue influence; and
(b) it thereby causes or is likely to cause him to take a transactional decision he would not have taken otherwise.
2) In determining whether a commercial practice uses harassment, coercion or undue influence account shall be taken of—
(a) its timing, location, nature or persistence;
(b) the use of threatening or abusive language or behaviour;
(c) the exploitation by the trader of any specific misfortune or circumstance of such gravity as to impair the consumer’s
judgment, of which the trader is aware, to influence the consumer’s decision with regard to the product;
(d) any onerous or disproportionate non-contractual barrier imposed by the trader where a consumer wishes to exercise rights under
the contract, including rights to terminate a contract or to switch to another product or another trader; and
(e) any threat to take any action which cannot legally be taken.
(3) In this regulation—
(a) “coercion” includes the use of physical force; and
(b) “undue influence” means exploiting a position of power in relation to the consumer so as to apply pressure, even without using
or threatening to use physical force, in a way which significantly limits the consumer’s ability to make an informed decision.
0
Comments
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Sorry, you can't force a bank to give you an account. If they choose not to give you one for residency reasons and they're good enough to offer you an alternative, that's pretty much it. You'll get nowhere with a complaint on legal grounds like that.I am a Chartered Financial Planner
Anything I say on the forum is for discussion purposes only and should not be construed as personal financial advice. It is vitally important to do your own research before acting on information gathered from any users on this forum.0 -
Did they force you to open an IoM account? If they did then you might have legal recourse, but I'm guessing that they just suggested it was an option0
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You will find that all banks/BS in the UK will not allow non-residents to open a new account. Clearly BofS never "forced" you to do anything and any legal claim is without merit.
HSBC is probably the safest bank around. BTW, since you live in the France, you come under the EU savings directive. This means that HSBC are obliged to deduct tax at source (either 20% or 35%).In case you hadn't already worked it out - the entire global financial system is predicated on the assumption that you're an idiot:cool:0 -
The BofS effectively have given us no option but to either join their IofM offshore branch, leave the money in an account paying poor returns or leave the bank. The consumer legislation is new and is looked after by the FSA. I will seek their advice. There are several Uk banks that allow non residents to open accounts , HSBC, Barclays, N,S and I are the ones we have found but I am sure there are more. The FSA state that there are no legal reasons why a non ordinarily resident UK citizen cannot open an account in a UK bank. In countries like Canande their consumer association explicitly prevents a bank refusing to open an account without a viable reason. Living in France is not a viable reason. Basically what BofS has done to us is not fair. They have penalised us for no valid reason. The consumer law protects against that.0
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It really doesn't, sorry. A bank does not have to open an account for anyone that doesn't meet their criteria. If BoS choose to make UK-residency one of their criteria, then they are perfectly entitled to refuse you an account if you are non-resident.The BofS effectively have given us no option but to either join their IofM offshore branch, leave the money in an account paying poor returns or leave the bank. The consumer legislation is new and is looked after by the FSA. I will seek their advice. There are several Uk banks that allow non residents to open accounts , HSBC, Barclays, N,S and I are the ones we have found but I am sure there are more. The FSA state that there are no legal reasons why a non ordinarily resident UK citizen cannot open an account in a UK bank. In countries like Canande their consumer association explicitly prevents a bank refusing to open an account without a viable reason. Living in France is not a viable reason. Basically what BofS has done to us is not fair. They have penalised us for no valid reason. The consumer law protects against that.
They're not forcing you to open an account at all. As you've highlighted, you can leave the bank freely, you can keep the account you already have or you can go to their offshore division. There's no force there, just choice.I am a Chartered Financial Planner
Anything I say on the forum is for discussion purposes only and should not be construed as personal financial advice. It is vitally important to do your own research before acting on information gathered from any users on this forum.0 -
BTW, since you live in the France, you come under the EU savings directive. This means that HSBC are obliged to deduct tax at source (either 20% or 35%).
Incorrect - in most cases there are 2 options (*) under the Savings Directive - witholding tax, or exchange of information. If you elect for exchange of information, then there is no tax deducted at source
* - there is a 3rd option if you are not liable to taxation on worldwide income0 -
* - there is a 3rd option if you are not liable to taxation on worldwide income
This is in effect the 2nd option?
http://en.wikipedia.org/wiki/European_Union_withholding_taxIn case you hadn't already worked it out - the entire global financial system is predicated on the assumption that you're an idiot:cool:0 -
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