RBS Account Opening Issue

Pink_Floyd_2

I hold a key account with RBS. Impressed with the TV add for savings goals I decided to apply online through my digital banking for a savings account. At the same time I decided to apply to upgrade to a current account.

Both were accepted and I was given sort and account numbers and also advised I would receive my card(s) and welcome pack(s) shortly. The following day the new accounts appeared online, but the day after disappeared.

I rang RBS and the chap I spoke with said he couldn't understand why this had happened but advised two letters had been sent to me. Unofficially however his belief was that RBS had renaged on the offer of the accounts. I am obviously unhappy about this and he agreed it was very poor to do this after issuing the account numbers etc.

I could understand slightly on the current account if I don't meet the criteria, despite the initial acceptance. The savings account however not only mystifys me, but infuriates me also.

Has anyone seen this happen before?

pmduk

Unfortunately yes, the RBS group have a section called the Applications Verification Unit which vets all applications. It appears that for some reason they don't want your business. I'd be surprised if you manage to hold on to your key account. Sorry.

KingElvis

Yep, the AVU strike again.

Just type AVU into the forum search.

Pink_Floyd_2

Hmmm.....

I've had my key account for six months. Will they just close this too? It makes no odds as if this is what's happened I'm closing my account anyway. It's one thing to reject a current account, quite another to approve it and then say no. Not to mention deny you a savings account which seems crazy!

pmduk

When they agree to a new account it's subject to further checks. The form you would have been sent to sign and return states this clearly. It appears that these further checks have shown something they don't like.

If they won't even allow you a savings account, I suspect your key account may well be in danger as well.

Members of RBS staff regularly use this forum (although not as formal reps for the bank). One of them may be able to shed a little more light generally on the subject.

I'd suggest when you look elsewhere for an account you avoid Natwest as any application there will almost certainly receive the same treatment.

Pink_Floyd_2

Well the plot thickens. I've arrived home today to find two letters with welcome packs. The letters clearly state I have been successful in opening both the saver and current account. Further to this the current account letter even advises me to start setting up wage transfers etc.

Is it possible the accounts have been processed with complete success and it is a fault on the internet side of things?

pmduk

Have you tried calling the line that handles account opening queries?

Pink_Floyd_2

pmduk wrote: »

Have you tried calling the line that handles account opening queries?

No I'll do that asap

Pink_Floyd_2

Well I have been AVU'd

I fully appreciate that banks are under no obligation to offer you accounts. However it seems crazy that a financial institution can send out letters and welcome packs and then decide to close the account(s) after further checks.

Surely it would be more sensible to carry out all checks before offering anyone any financial product? I will be visiting my local RBS branch on Monday morning with the letters to voice my displeasure (for all the good it will likely do) but also to inform them I'll be closing my key account.

I don't need their account and I don't see why I should deal with any bank who thinks this sort of behavior is acceptable.

pmduk

There are other banks that work similarly. HBOS for example issues account details at the time of application than sometimes cancels them after review (unless this has changed fairly recently). I'd try for a Barclays basic account.

Pink_Floyd_2

pmduk wrote: »

There are other banks that work similarly. HBOS for example issues account details at the time of application than sometimes cancels them after review (unless this has changed fairly recently). I'd try for a Barclays basic account.

There is no need as I have a BoS basic account. The reason I took on the RBS key account 7 or so months ago was to get a VISA debit card as the BoS account comes with an Electron card.

I now hold a VISA credit card so I can happily switch back to BoS. I will stress that it's not the rejection that infuriates me (and others no doubt), rather the apparent successful application that is then cancelled. None of which would be necessary if they just carried out all checks at the same time.

I'm not a banker, but I'm sensible enough to realise that this amounts to duplication of work in a certain sense. Not only is it a waste of paper and resources, it is also a sure fire way of alienating customers.