MSE News: RBS punishes basic account holders in ATM crackdown

callum9999

tifo wrote: »

Many people who have a Basic account do so because they CANNOT get a 'Standard' account, i.e. one with all the facilities.

I've had their Basic (Key) account for about 8 years, never been overdrawn etc yet I can't pass a credit check for the Standard current account (Select), though I have a paid account (because it offers the benefits). But that's still a Basic account with a fee for the benefits. I still cannot get a cheque book or overdraft that comes with the paid accounts.

So Basic account holders can upgrade to a paid account but not a Standard free account. Only because the bank is happy to take the money from you.

Or open an account with Bank of Scotland.
Or open an account with Barclays.
Or open an account with Clydesdale.
Or open an account with Coventry BS.
Or open an account with Halifax.
Or open an account with HSBC.
Or open an account with Nationwide.

And I could go on and on and on. Must everything be spoon fed nowadays? I have (full) accounts with most of the major banks - it really isn't difficult. Perhaps people on here should be giving these "poor, remote" people a little benefit of the doubt instead of assuming they are morons incapable of filling out a bank application or who lack knowledge of the existence of other banks?

savagej

I would leave out Bank of Scotland (Halifax might be an exception) from that list as very soon they are likely to go the same way, as they are part of Lloyds and are getting LTSB's computer system impossed on them sometime next month. So I think it likely to stop duplication all basic accounts within the Lloyds Group will have ATM restrictions impossed on them too.

jalexa

tifo wrote: »

I've had their Basic (Key) account for about 8 years, never been overdrawn etc yet I can't pass a credit check for the Standard current account (Select), though I have a paid account (because it offers the benefits). But that's still a Basic account with a fee for the benefits. I still cannot get a cheque book or overdraft that comes with the paid accounts.

So Basic account holders can upgrade to a paid account but not a Standard free account. Only because the bank is happy to take the money from you.

I'm puzzled at your post. Are you saying you have a Natwest/RBS "fee paying" account and a Key or Step or they "upgraded" your Key or Step to "fee paying" (with full function debit card) but declined both a cheque book and an overdraft.

When "you couldn't pass the credit check" for the "free" Select account did you request an overdraft and was that application before or after you were upgraded to "fee paying" "Select" (with a declined overdraft).

Perhaps you are saying that online, upgrading to "free" Select is not offered as an option? True, but applying for "fee free" "Select" *is* offered as an online option.

This process will benefit from playing a long game "smart".

Apply for a "fee free" Select account. Do not apply for an overdraft. Ensure you make it clear the account will be funded with earnings. Do not apply for a cheque book unless that is essential functionality.

I cannot promise a successful outcome (though there is a positive report in this thread), however the outcome will be better evidence of what Natwest/RBS thinks of you that all the consumers organisation's carping. If successful, an applicant will have the opportunity to demonstrate sound conduct. In time (circa 6 months) that will be the time to request a £100 overdraft "buffer". Another opportunity to demonstrate sound conduct.

If unsuccessful, hey rejoice in having a "loss-making" account with excellent online banking, direct debits, standings orders and access to a large number of Group branded ATMs and needy (as in use them or lose them) Post Offices in rural areas. All for free. Go get another basic account somewhere else (suggest Halifax and you can apply online) to gain access to another large number of group ATMs. And hey, rejoice at now having two "loss-making" accounts.

jen245

Jalexa, before the changes, you could have the paid for add ons, such as Advantage Blue/Royalties on Step/Key accounts

jalexa

jen245 wrote: »

Jalexa, before the changes, you could have the paid for add ons, such as Advantage Blue/Royalties on Step/Key accounts

Thanks. Didn't know that, but then I am averse, nay blind, to account fees and charges, made all the easier by denying all marketing consents.

MoneySaverLog

savagej wrote: »

all basic accounts within the Lloyds Group will have ATM restrictions impossed on them too.

Their basic "Cash Account" already is limited to Lloyds TSB cash points and the post office already.

tifo

jalexa wrote: »

I'm puzzled at your post. Are you saying you have a Natwest/RBS "fee paying" account and a Key or Step or they "upgraded" your Key or Step to "fee paying" (with full function debit card) but declined both a cheque book and an overdraft.

I had an Advantage Gold account with Natwest which I cancelled and it turned to a standard account, with cheque book but no overdraft.

I opened a Royalties Gold account with RBS (for the extra benefit) and this comes with no cheque book or overdraft. I've had their Key (basic) account for 8 years which has been run well. But my credit score won't pass for the standard account. So basically they've given me a paid account with none of it's 'usual' benefits such as cheque book and overdraft BUT i can use it in any cash machine and it comes with the benefits i'm paying for. Overall, the paid account saves me money because I would have to pay for the car breakdown or home emergency cover separately, or the 2 year extended warranty when I use the debit card and much more.

My experience with RBS/Natwest shows that those who can only get a basic account would now need to upgrade to a paid account to get a cash card that can be used in any ATM.

MoneySaverLog

tifo wrote: »

My experience with RBS/Natwest shows that those who can only get a basic account would now need to upgrade to a paid account to get a cash card that can be used in any ATM.

I think all the banks will go that way soon so if you have the full free current account they will change it to only allow you to use their branch network of cash machines.

They are starting with the basic bank accounts first.

Then you'll have to pay to upgrade to something like Silver with Lloyds to get this service.

tifo

callum9999 wrote: »

I have (full) accounts with most of the major banks - it really isn't difficult

It is VERY difficult for many people. Even a single default for a few pounds will have you turned down or being late for credit card or mortgage payments will have you turned down. I know because i've been turned down for both reasons.

I (now) have no defaults or CCJs yet cannot get a standard account because i've been late in paying my mortgage occasionally or a credit card or loan payment. Don't forget that the credit record goes back 6 years so something we did, say, 4 years ago still affects us.

tifo

MoneySaverLog wrote: »

I think all the banks will go that way soon so if you have the full free current account they will change it to only allow you to use their branch network of cash machines.

The only way for some to get a standard account is to open a paid one, cancel within the 2 months most banks allow (you get your fees back) and it will change to a standard account with a debit card that can be used in any ATM. Very rarely will a back convert it to a basic account because a paid account is a standard account with paid for benefits.