Refused ISA - Why?

Panners_2

Hello All,

I've just been refused an ISA, which has left me completely shocked and very angry - I'm an individual with an impeccable banking history, never been in debt, never been refused credit before, have had a couple of credit cards (now just one) which are only ever used for small online purchases and are always paid in full as soon as the debit shows on the account.

My credit report is as clean as a whistle and only shows the recent search by the bank concerned. I've just checked this through the Experian website and there is abolutely nothing detrimental on there whatsoever.

I am not linked to any individual or organisation who may be carrying debts so why the refusal? Can anyone shed any light on this please?

The irony for me is I'm asking them to SAVE some money not to lend it from them...

natman

Hi,

Wouldnt it be better to ask the company who have refused you, and let us know?
There could be a variety of reasons, where we could speculate.
It does seem weird that you have been refused.
What type of ISA was it and which banking institution was it for??

Like I Say it is worth speaking to them and updating us on the forum as to why perhaps.

Panners_2

Natman,

They were my first port of call this morning when I opened the letter, they are the cooperative bank, and the person on the other end of the phone would only say 'there must have been something they didn't like in the search' would not tell me what it was and suggested I view my credit report.

It is just the bog standard ISA linked from their home page.

All those things I've done, and can only sum up how I feel by saying flabbergasted and livid.

Thanks.

natman

Does sound strange,
I was always under the impresion that when opening up a savings account that a 'true' credit search did not happen as, for me personally I would be !!!!!!ed!! Ha
I am forever opening and closing saving accounts, but this does not have a negative effect on you credit report / status.

Very weird!!! Perhaps viewing your credit report may offer some light, but like i say this should not have a real bearing on things as you are saving not borrowing!!

I would perhaps ring them again, and ask to speak to teh department that makes the decisions as the person on the phone would only know general info, and was not that helpful.

Vey weird!!!Just for interest what Co-operative ISA was it, Reason I ask is, I have not seen many products in the best buy tables offered by them. If it is the box standard cash isa it only offers 0.5%........

King_Weasel

Like you, I can't see how it can have anything to do with your creditworthiness, however good or bad.

But I guess the bank has to be on the lookout for money laundering etc. as well as having to be sure you qualify for an ISA. So is there any reason for doubting you are who you say you are? Could there be a mix-up over names or maybe your address is associated with someone dubious in some way? Have you always lived in the UK? Have you always been a British citizen?

Just suggesting possible areas where the explanation might lie. I would recommend pursuing this even if you're no longer interested in their ISA, as it could have wider ramifications - it's not like being rejected for a credit card by an issuer with narrow acceptance criteria. Maybe your credit report is a good place to start.

dunstonh

Sounds like you have failed the electronic money laundering check. This is not a credit score but does use the same system.

I have used this for over 5 years now and tend to find it is more likely to fail on the following basis:
1 - frequent house mover
2 - A combination of no BT phone, not on electoral roll and not enough applications at that address to build up a record
3 - house name and no number
4 - your records contain inconsistent data (such as date of birth errors or name errors).

skintdragon

I asked about whether or not credit checks were conducted when opening an ISA or any savings account, and the banks say they don't. Hmm...

dunstonh

skintdragon wrote: »

I asked about whether or not credit checks were conducted when opening an ISA or any savings account, and the banks say they don't. Hmm...

An electronic money laundering check is not a credit check. It uses the same system but it has no impact on your credit and your credit score doesnt matter.

skintdragon

thanks for that info! yea they did a money launder check. phew!