How to get a bank account - if you're unbanked - basic bank accounts

flibblesan

glider3560 wrote: »

AFAIK British citizens can only apply for an ID card when you apply for a passport. They must live in Manchester or work at Manchester or London City airports. Nationals from outside the EU can apply for an ID card wherever they live, without a passport.

Looks like I was incorrect about the passport as it's needed at the moment. I can apply as I signed up to the ID card newsletter.

freespeaker

Hi guys

I work for one of the big banks mentioned and can hopefully answer some of your questions.

* There are no deliberate policies not to give people these accounts. If this is the case, the banks would take it seriously as this is contrary to the "treating customers fairly" regulatory requirements we have from the FSA.

* It may be the case that individual staff are "mis-selling" and missing out the accurate needs assessment. If you bring this to the attention of their manager or in a complaint to head office, it will swiftly be addressed

* The agents discussing your application are required under TCF to discuss your needs with you and on this basis may recommend the appropriate account. If you specifically ask for a basic bank account, You'll get one.

* A basic bank account deliberately doesn't have an overdraft or chequing facilities as people often would run up debts they can't repay and "go bad".

* We have a regulatory requirement to do a process known as "know your customer". this includes proof of who you are, proof of where you live. Part of this is an "anti impersonation test" to link you to your stated address. The reason we do this is to prevent fraudsters exploiting this loophole and opening an account in your name. So the "rejections" are not us rejecting customers because we don't want them, it's just asking the customers for the right ID.

chambta

freespeaker wrote: »

Hi guys

I work for one of the big banks mentioned and can hopefully answer some of your questions.

* There are no deliberate policies not to give people these accounts. If this is the case, the banks would take it seriously as this is contrary to the "treating customers fairly" regulatory requirements we have from the FSA.

* It may be the case that individual staff are "mis-selling" and missing out the accurate needs assessment. If you bring this to the attention of their manager or in a complaint to head office, it will swiftly be addressed

* The agents discussing your application are required under TCF to discuss your needs with you and on this basis may recommend the appropriate account. If you specifically ask for a basic bank account, You'll get one.

* A basic bank account deliberately doesn't have an overdraft or chequing facilities as people often would run up debts they can't repay and "go bad".

* We have a regulatory requirement to do a process known as "know your customer". this includes proof of who you are, proof of where you live. Part of this is an "anti impersonation test" to link you to your stated address. The reason we do this is to prevent fraudsters exploiting this loophole and opening an account in your name. So the "rejections" are not us rejecting customers because we don't want them, it's just asking the customers for the right ID.

I would argue that there is.

Certainly the reward structure for branch sales in at least two if the UK's High Street Banks gives the staff incentive to try and sell other account types first at the very least.

Kavanne

FedupfromLincoln wrote: »

We entered into an Iva in early part of last year and were able to open a Natwest Step account before it went through. However in September I tried to open another step account but the bank wouldn't let me as a result of the credit check they ran. They do offer a savings account though that enables you to pay direct debits.

If that's a First Reserve please read the T&Cs it says you may not set up DDs or SOs on the account. Any that do get set up are an admin error so I wouldn't hold your breath

martiny25

The only way i managed to get an account was to not produce any photo ID but plenty on bills proving my address, the bank then checked the electorate register and could only give me the basic account due to lack of ID. the bank was Natwest

willo65

Patr100 wrote: »

i don't have a problem with credit. I don't have problem opening numerous savings accounts. I do have a big problem because invarably if I were to appy for a new bank account as I don't have a driver's licence, or a passport and aren't on benefits no banks want me as I can't supply the narrow range of documents and they have no discretion. This really !!!!es me off.


Note, in my experience, a utility bill is never acceptable for ID purposes only for confirming an address, which is useless if the first hurdle can't be overcome.

Natwest accept
Original HM Revenue & Customs issued tax notification and correspondence

http://www.natwest.com/personal/current-accounts/g2/id-required.ashx

and if you live in the UK all you need to do is ask HMRC to send you one if you haven't already got one.

popalmr1

I agree with the above. I work for Barclays and we are all trained to offer a Cash Card account if the customer asks for one , or after a series of questions it appears that this would be best for you. I would however just ask for a Cash Card account if thats what you want and state clearly that you dont require any borrowing and you dont want a credit check carried out. The cash card account also comes with a visa debit card if required again with no credit check. If however you just ask for a bank account with a debit card then you do run the risk of the advisor being confused and applying for the credit scored variety. All Cash card applications as from last week have to be opened in branch and 90% of the time you can walk away with you sort code and account number the same day. Hope this helps

freespeaker

To: Chambta

As commercial institutions, banks have to make money and they will therefore attempt to sell to their products that do make money. Basic banks accounts lose money on the whole with running costs exceeding income earnt by quite a long way. Everything else sold cross subsidises them.

We are mandated by the FSA however to do a proper needs assessment on the customer under the Treating customers fairly rules when selling a current account. If it can be proven that we consistently don't abide by this, the FSA are entitled to fine the banks or take other restrictive actions. So in short, most banks are striving to do the right thing and only selling more money making accounts to those who demonstrate some sort of need for the added functionality like extra travel insurance, an overdraft or chequing facilities.

Like I said, if that's not the case. You should let the bank itself or the regulators know about the mis-selling and they'll do all they can to address it.

Cheers

Patr100

Rejecting on a specific stated issue is one thing but but Banks also can still refuse to accept anyone without giving any explanation whatsover.
Is that "treating customers fairly"?
How would they know and/or complain if the reason for their rejection is not explicit?

Patr100

willo65 wrote: »

Natwest accept
Original HM Revenue & Customs issued tax notification and correspondence

http://www.natwest.com/personal/current-accounts/g2/id-required.ashx

and if you live in the UK all you need to do is ask HMRC to send you one if you haven't already got one.

Some may , but others don't. Citbank even refused me an online Savings account a few months ago because I had none of the docs - they stated "call us if you have a problem about the ID docs". I phoned them and they just said if you don't have the required docs we can't give you the account . End of.
Useless waste of time.

Oh and the FSA or bank ombudsman etc wouldn't be interested in my complaint unless I was a customer of any said bank and as my application wasn't accepted I wasn't even a customer so there is nowhere to actually complain to!!!!

-