Credit Checks on non-Credit Situations

juggedhare

I'd be grateful for any comments.

We need to help manage a parent's pension small property portfolio, and for that purpose need to be able to manage the rental bank account.

A request for a second name on the account has been declined, due to a 'credit check'.

The account has never had an overdraft, and there is no prospect of it ever needing one.

The position is:

* The credit name of the extra name is not very good - old CCJ which has not dropped off the 6 years yet.
* The bank is Nationwide.
* The property account is a Flexaccount, with no overdraft.
* The extra person has had a Flexxaccount since about 1990, and has an overdraft facility.

Complaints to Nationwide are simply being stonewalled with "credit checks are our policy", though we were explicitly told by the branch that since there was no overdraft facility there would be no credit cheque, having asked the explicit question.

We have had no success in attempts to get an explanation as to why this is a sensible policy.

First a question: is there any regulation on this - banks applying CCs to non-credit situations? I'm surprised that it is legal.

What are our options?

CR repair does not look feasible before it drops off the end of 6 years.

We could juggle everything and go for some sort of basic account, or a joint savings account which takes electronic payments of rent, and simply throw Nationwide into touch - a pity after 25 years.

Or we could get a cash card in the parent's name and share the PIN.

Any suggestions would be welcome.

I'm left wondering what carers without good credit histories are supposed to do.

Rgds

Jugged Hare

fluffnutter

How have you complained (or queried this decision) with Nationwide so far? Have you phoned or written? If you've written, who have you written to?

With regard the legislation, I'm no expert but I suspect banks can justify running a credit check when adding a new name to an account. I doubt you'll get very far by querying their policy from a legislative point of view. But you might have success if you appeal to the right person, i.e. one who can make a decision based on the individual circumstances, not 'policy'.

NB. I have had success with Nationwide recently (I was deemed ineligible for their complimentary travel insurance that comes with their flexaccount). A quick letter sorted it all out (in my favour) which I why I ask who you've spoken or written to.

wealdroam

The Bank Accounts board is probably the best place to ask this.

The bottom line is that they, or any bank, can choose to deal with who they like.
I know you say you already have one account with them, but they are free to refuse further requests.

I suppose there is always the possibility that if you push them hard enough they might decide they no longer want your existing account either.

squeaky

Hi,

Our board specialising in Banks Accounts looks like the best place for your query, so I'll move it across for you.

Good luck

Forum_Team wrote:

Hi, Martin’s asked me to post this in these circumstances: I’ve asked Board Guides to move threads if they’ll receive a better response elsewhere (please see this rule) so this post/thread has been moved to another board, where it should get more replies. If you have any questions about this policy please email [EMAIL='forumteam@moneysavingexpert.com']forumteam@moneysavingexpert.com[/EMAIL]

Flyboy152

As you will be "managing" someone else's finances, I would imagine that it would have been necessary and wise to establish if you are solvent. If it turned out that you owed a lot of money, giving you access to someone else's bank account would be a big risk.