Bank accounts refused :(

steve_o1983

Hello everyone,
New to the forums having found a link off Google.

I'm a 26 year old who works full time, having graduated in 2006 from uni and worked ever since. I've been with my main bank 9, almost 10 years.

What I was looking for was another account where I could put away money, with a bank that wasn't my main bank, as in the event of redundancy they could confine any 'savings' to offset liabilities. My student overdraft and a little bit on top come off as a nice chunk of my monthly salary having been converted to a loan in 2008. I expect that to be settled next summer as it was locked into a three year period from when I took my new job in 2008, which was a jump up in salary.

Last week I applied for a current account with Santander, explaining what I wished to do with it (outlet for regular deposits with relatively easy access, but not tied to a monthly amount). They undertook a credit check and the day after the application was refused, on the grounds of an 'adverse credit rating'. My parents address was mentioned, and nothing else was mentioned at the time. Both have DROs having had credit card liabilities that lenders were inflexible on negotiating.

Feeling that decision to be made on information I felt to be incorrect, I enacted the appeal process, copying in the letter to the Chief Executive. He seemed to think that was a complaint and bounced it appropriately to the complaints department, from whom I received one of the most polite 'go away' letters I've ever had.

I am still considering whether to now extend their refusal to the Financial Ombudsman as a final means of appeal.

Last week, after the rejection I also applied online for an account for the Co-Operative bank and chased that up by phone last night, with the adviser asking a load of additional questions, and he then told me my application had been successful, and offered me a credit card. I wasn't really after that and am not going to be for a 12-18 month period. I don't wish to over-expose myself financially.

Yet today I received a letter dated 28/2/10 from Co-operative informing me my application had been refused. This seemed a tad confusing given my telephone conversation I'd had last night, so I rang them and queried it, to be told, yes there were two applications, and yes, both have been cancelled and we can't give you an account. Experian was mentioned a second time. Obviously I can't keep applying for accounts when they are going to be refused by the antics of a credit reference agency. The Co-op letter is more open ended and invites to resubmit the application once issues with Experian are sorted out.

Following last week, I requested my credit file from Experian, and am convinced the information contained within will unearth some interesting things, as I haven't requested it before. My attempts to chase that up yesterday stated that they'd not received my cheque, or letter, and was advised to send again, via recorded. Which I've done today.....

As due to the nature of my work I have had to move around a bit there are a few addresses I have been living at where I am likely not to appear, as all mail was at one stage sent to my parents address, as a secure point where I could pick it up. I was residing in a bedsit address where theft was commonplace and post also interfered with....so I had very good reasons for diverting the lot.

There was also a 12 month period, four years ago where I wasn't registered to vote, given the frequency of moving around. Since 2007 I've been registered to vote at two locations. The thing is I can see another opportunity in the future where I may need to use my parents address as a central point for all communications. The black mark with the electoral roll was a reason given for two internet accounts being refused after a credit check almost 2 years ago.

This was also done with a mobile phone contract last year where Orange was unable to deliver my bills to my flat, being in a new development that wasn't 'on their database' so the bills went to someone else.

They became rather annoyed with that and went into the store - with the end result that my phone was then disconnected for 10 days while I had to prove where I lived, despite their admin being poor....they were then going to repeat the same mistake again when I queried the address they held on file, hence why my parents address was used, to ensure I had a mobile (which is the only means of communication, as I don't have a landline)...

Experian assure me that the finances of my parents have no bearing on my credit rating, so I am at a loss (having not seen what they hold on me just yet, I am now very keen to clear this up) as to why I have an adverse credit rating when I have some credit lines, serviced via direct debits. They also assure me that an 'address' cannot be blacked, so I am wondering why that was mentioned by one bank when the account was refused. Is the info Experian have common to the other reference agencies?

All I am after is somewhere where I can deposit money and access it relatively easily. It strikes me that a savings account will return poor interest, without easy access. Yet I find my efforts to try to save being blocked by a credit reference agency.

Has anyone else had similar experiences with Experian and trying to open accounts? I'd be interested to know a bit more, as I'm reasonably sure I'm not alone.

karatedragon

You could just open a basic bank account somewhere.

However, I find it concerning that being a "graduate" (and I am sumising here so I am sorry) early 20s starting out in life already has "adverse credit"

You should also send for copies of your credit files and remove any financial associations you are not connected with.

If you are after easy access then you will find the rate to be low. The Santander deal of 6% is a bit of a misnomer as it is only on the first £2,500. At the moment savings rates are very poor. Unless you lock yor cash away for a term. Or perhaps you could use a cash ISA. I have been using Premium Bonds as a savings alternative and it has proved pretty fruitful. You can also access the money you invest instantly.

Also Experian and the other CRA's do not "block" your application. Their data is used as part of a institution's overall application process providing a snapshot of your payment performance on active and settled credit agreements. It also confirms if you are on the electoral role etc.

The problem you had with Orange could be problematic in that if bills were going to the wrong address they may have been marking in the CRA each month that you have not paid. If you spot this you should endeavour to get this corrected. This is not the CRA's fault but would be that of Orange.

steve_o1983 wrote: »

Has anyone else had similar experiences with Experian and trying to open accounts? I'd be interested to know a bit more, as I'm reasonably sure I'm not alone.

Yes. But it was not the CRA's fault as they simply "hold" data from institutions providing it to them. I had a false "default" against me from NTL (Now Virgin Media). It caused all kinds of problems when I tried to change current accounts. Alarmingly, it was a hell of a game getting it removed too. The rule of thumb I experienced was if the lender "thinks" the data about you is correct then "it must be". The concept of "the customer is always right" was totally non-existant. Further, the department in NTL that provided data to the CRA's "didn't speak to the public". Any letters I wrote were totally ignored even when signed for. The whole affair resulted in me taking court action against NTL to resolve it once and for all.

steve_o1983

Thanks for the reply

The graduate debt is a student loan (which is another pull off the salary before take home) and an overdraft on an account, now a loan with a fixed monthly payment. It will be nice to have the extra £100 a month. It does leave things tight every month but one can plan ahead and use the authorised overdraft when needed.

With Orange the issues arose after the first month of the contract, being a 24 month one due to end this December. Their bill is one of three direct debit payments on my bank account - things like utility bills are settled via cheque. I have a separate internet account with them, on another DD to come off at the start of each month. Money is always in the account to settle it, so technically there has been no break in service.

So there is some credit history there - I am beginning to guess that there isn't much else I could do aside from getting the Experian report and getting it corrected. I don't want to apply for another account when there is an imprint of two in a 14 day period...

My parents issues relate to credit card liabilities for which they took out a DRO. As my father's initials use the same letters as mine but in a different order, is it possible Experian can confuse one person's liabilities for another? They do seem to be hung up over the same address used for postal details.

karatedragon

steve_o1983 wrote: »

My parents issues relate to credit card liabilities for which they took out a DRO. As my father's initials use the same letters as mine but in a different order, is it possible Experian can confuse one person's liabilities for another? They do seem to be hung up over the same address used for postal details.

Quite possibly. On my file years ago I had an entry for "JD Williams" and that was for my Dad. It was down for me as a possible alternative name for myself. Unfortunately my Dad missed a payment. Wasn't his fault as the garden hose he ordered never arrived and he refused to pay the bill until he got the hose. They marked him down as a late payer. He had trouble getting that corrected as well.

For me I had to sign a declaration stating that I had no financial association with him and the entry was removed from my file. That was quite straight forward.

CLAPTON

get copies of your credit records (all three agencies... 3 x £2..not a lot )

open a instant accesss saving a/c

xyz123

steve_o1983 wrote: »

Hello everyone,

I am still considering whether to now extend their refusal to the Financial Ombudsman as a final means of appeal.

To be honest IMHO i dont think you will get any where with the finanncial ombusdsman. There appears to be enough on your credit files for a bank to decline you a current account. See what your credit report comes back to and if there are any erros ensure they are corrected.

Secondly why do you need a Santander account anyway? If you want to save open a Savings account. These usually dont involve credit checks and you can put your money away in one of these.

Also many banks have basic accounts (to name a couple Step account and first reserve account with natwest) which can be opened as some saving accounts have a requirement of opening another branch based account with ATM facilities (you may also want that, in case you need to withdraw money and cant go into a bank...)

usedandabused

get a RBS key account, i just opened one, really simple, did it online last wekk, they posted me the declaration, sent it back monday of this week, 3 days later i had a card, i'm awaiting a pin, but it's real simple.

i have a n&P main current account gold, now have RBS keyaccount, definately shutting down lloyds, i can use the debit at ANY cashlink atm!!!!!

steve_o1983

Thanks to everyone who's replied so far, some ideas there to pursue I think.

I've got a letter from the Co-op today saying my account had been approved in principle -when yesterday they sent one two days after saying it had been refused. I rang them again today and a manager has called back, telling me to appeal the decision. He also mentioned a 'cashsaver' account, which would appear to be more what I was looking for, rather than a current account so I will suggest that in the appeal letter as a possible option (yet that has a credit check too) for them to consider. I don't want another check being undertaken until things have been cleared up

I have sent off for my Experian credit report, so should hopefully be getting that within the next 7 days. From what I have read up about credit reports these last few days there is potential for confusion with 'associated' names, so its probably a matter of getting things corrected.

Up until now, I haven't managed to obtain my credit reports, thinking naively that I wouldn't need to. Won't be making that mistake again.

benoit

I was going to suggest things like the Cashminder. I had an idea you might have been applying for standard current accounts hence the declines you keep getting but the basic accounts like cashminder at co-op or even the cbasic accounts at other banks are more likely to accept you because they are not subject to the same criteria as the bigger current accounts. Halifax do the Easycash account which is also basic & easy to get, or the step account at Natwest.

book12

Barclays Cash Card Account is good too, as well as the accounts that other people have mentioned above.

Innocent_Guy

I think you may have a hidden CIFAS marker......