Banks declining me Left, Right, Centre!!!

kamyk662

Hi

I was wondering if someone could give me some advice. So basically it all started when i tried apply for a second current account with lloyds tsb. I already had one current account with them but reuiqred a second one.

A couple of days after applying i recieved an email stating my original/1st current account would be closed because they noticed some unusual "account activity" on my account and they had "concerns" and made business decision do close the account and put a block on the account. I remember a few months back i noticed transactions on my account which i did not recognise so i notified tsb and they refunded my money and was told to sign a return a form, which i did. I though this may be in relation to this.
I rang them up today and they stated that they noticed adverse information on the acount which violated the tsb user agreement, they didnt elaborate, but i asked if this would affect my credit report and they said no, i then asked if a CIFAS would be placed on my record and they stated no. I was then told to go in branch with id and empty my account.

I recived another letter regarding the second current bank account application and obviously they declined it.

Then i recived a letter from RBS (whio i have 3 accounts with) that they will be closing my accounts too and natwest (who i had a step account with) who are part of the rbs group will also be closing my account, they did not give me a reason. I figured because i had no funds coming into the accounts and never really used them they decided to shut them, but i never had an official reason from them.

Last week i applied for a santander account and a HSBC advance account, and yes they both got declined, without any reason.

I checked my credit report and everything is fine, with a score of 889. So i am clueless as to why banks are rejecting my applications?

The only working bank account i have is from Ulster bank which is located in northern ireland but i live in the UK, and dont will have no bank account in the UK come another 3/4 weeks when these banks shut my accounts down.

jordanlitz

The only reason i can think of (assuming you've not gone bankrupt) is fraud - have you checked if there was anything on CIFAS database?!

kamyk662

Hi no ive not gone bankrupt, i have my student loan to pay off thats the only debt i have.

I have checked my credit report there is no CIFAS record listed there, would it show up on the report asap? or would i have to go direct to CIFAS?
Also TSB did say i would not have any sort of CIFAS put against my credit report.
Even if it is fraud im clueless as to what i have done, i was the victim of fraud i did not initiate the fraud.

thanks

pmduk

I suspect it is very unlikely that the TSB adviser you spoke to would know whether a CIFAS marker would be placed or not.

staffie1

Ask the bank holding your original account to explain the unusual "account activity" they were referring to.

jalexa

kamyk662 wrote: »

Even if it is fraud im clueless as to what i have done, i was the victim of fraud i did not initiate the fraud.

Clearly something is going on and it is important that you address the accuracy of data held about you.

Firstly regarding your question about "CIFAS", if you are concerned you need to make a Subject Access Request of CIFAS. Details on their website. The Credit Reference Agencies only record CIFAS information regarding "Impersonation" and "Protective Registration" not account conduct.

Next you need to set a 2 stage trap for Lloyds TSB. Quit discussing on the phone and ask them to provide you with the name of any external database consulted in making their decision. Independently make a Subject Access Request of Lloyds TSB requiring provision of all the information you are entitled to. Consult the Information Commissioner's website for details and a template letter. (An SAR should be fulfilled within 40 calendar days).

When the information is in try to drive a wedge through a submission that is either inaccurate or does not explain their actions. If they do not satisfy you on that, raise a formal complaint about "procedure" and if you remain dissatisfied at "deadlock" or after 8 weeks, whichever occurs first, refer the issue to the Financial Ombudsman Service.

While there are clauses in the Terms and Conditions which allow a bank to terminate a customer relationship, such decisions should not be groundless. The "clue" that a database somewhere (probably CIFAS, rightly or wrongly) records that "something is going on" is the closure of your Natwest Step account. There is a clear presumption that Basic accounts should be opened, or remain open, unless there is a record of fraud (by the account holder), an individual agreement or undischarged bankruptcy.

I don't want to be judgemental but other than the previous "unrecognised transactions" are there recent transactions that can reasonably be described as "unusual account activity"? And why so many current accounts?

worried_jim

jalexa wrote: »

I don't want to be judgemental but other than the previous "unrecognised transactions" are there recent transactions that can reasonably be described as "unusual account activity"? And why so many current accounts?

And herein lies the answer.....

noh

The only working bank account i have is from Ulster bank which is located in northern ireland but i live in the UK, and dont will have no bank account in the UK come another 3/4 weeks when these banks shut my accounts down.

Not really relevant to your problem but NI is part of the UK.

kamyk662

jalexa wrote: »

I don't want to be judgemental but other than the previous "unrecognised transactions" are there recent transactions that can reasonably be described as "unusual account activity"? And why so many current accounts?

i really dont know, there was nothing unusual there to me, i always used to make payments using western union to my agent in china for goods, and things that i buy off the internet.

My original rbs account was a r21 account, which they automatically upgraded to a current account but they did not upgrade it they created a totally new one, and the step account was used for recieving my student loans etc, the natwest/ulster i wanted to use it for paypal accounts and the tsb was for buying goods and paying suppliers.

I needed another paypal account hence why i applied for a second tsb account. But it was at that point when the letter that they would be closing my account came through.

I presume the poster who stated the opening of current accounts may be the "unusual activity" may be right? but i did not know they may class that as unusual activity.

so best thing now would be to create a letter( asking them why they have declined my applications) send it to the banks that have declined my applications.

And send TSB a letter (asking them to explain why they closed my account) right?

do i put "subject access request" as the subject in the letter? with my name/address/contact info?

do i need to put my account number/sort code in there and any other letter refernces?

jonesMUFCforever

So you are running a business through a personal account?

jalexa

kamyk662 wrote: »

so best thing now would be to create a letter( asking them why they have declined my applications) send it to the banks that have declined my applications.

And send TSB a letter (asking them to explain why they closed my account) right?

do i put "subject access request" as the subject in the letter? with my name/address/contact info?

First of all the Subject Access Request is entirely seperate from asking for specific feedback or explanation. On the SAR be guided by the ICO website.

Regarding asking for an explanation, banks AFAIAA do not have to provide a full explanation, however they do need to provide, if asked, the name of any external organisation consulted (searched) in making a decison. In your case, with Lloyds TSB, that could have been trigerred by the application for a new account. You need to phrase your request in such a way that an incomplete response leaves you open to refer the "procedure" (but not the decision) to the Financial Ombudsman Service.

The other banks closure decisions, especially the Step account closure, being unrelated to a specific application are very hard to read. You may need to wait for your CIFAS SAR (also research National Hunter).

Other posts have hinted at a possible reason. I don't condone the suggested account conduct but everybody is entitled to their credit and personal data being 100% accurate and only used for the intended purpose. I don't think "small time business use" is "fraud", though it may well breach personal account terms (and be a reason for account closure). You need to ensure that your account conduct has not been misrepresented as "fraud", particularly by Lloyds TSB.