Bank account markers

holmesgroove

Hi All. Hoping someone can help.

Recently, I've been helping a friend of the family with a problem. Their son is mentally and physically disabled. The local bank branch which he has an account with disallowed him an overdraft. I would like to know, when a bank does this, do they put a marker onto the banking system to alert other branches/and/or staff not to allow any overdraft facility?

If not, is there any reason how/why another branch could give this individual an overdraft?

Plus, if there has been co-signers added to the account(so that the individual has to be accompanied to enable him to withdraw monies), should the individual be able to withdraw anything? If so, how? If not, is this another banking error?

Thanks for your time....

Gromitt

The only marker they leave is the fact that you applied for credit. They don't state whether you were successful or not.

jbuchanangb

When a person does not have the mental capacity to manage their own affairs, the person who manages their affairs for them should apply to the Court of Protection, and will be appointed as "Deputy". The they can manage everything without ever needing the signature of the incapacitated person again. My sister-in-law became incapable of managing her money, so my wife took charge and the court appointed her to deal with everything.

chambta

Within RBS group an account can be marked so that credit applications will automatically be declined or referred.

rb10

holmesgroove wrote: »

Hi All. Hoping someone can help.

Recently, I've been helping a friend of the family with a problem. Their son is mentally and physically disabled. The local bank branch which he has an account with disallowed him an overdraft. I would like to know, when a bank does this, do they put a marker onto the banking system to alert other branches/and/or staff not to allow any overdraft facility?

If not, is there any reason how/why another branch could give this individual an overdraft?

Most banks will have pre-approved overdraft limits set up in their systems - i.e. will have already decided the maximum arranged limit that they are willing to give you. These limits are set by the head office, and not by the branch. When you go into a branch, all they can do is see what your maximum limit is (in your case, zero), and, if possible, apply the overdraft to your account.

This consistency means that you could apply for an overdraft through any channel (any branch, telephone banking or the internet bank) and receive exactly the same answer.

Run the account well, and ask again in six months time.

holmesgroove wrote: »

Plus, if there has been co-signers added to the account(so that the individual has to be accompanied to enable him to withdraw monies), should the individual be able to withdraw anything? If so, how? If not, is this another banking error?

Thanks for your time....

It depends on how the second signatory was set up.

It could be that both signatures are required for a withdrawal (in which case the individual would not be able to make a withdrawal on their own), or on an 'either/or' basis, where any one of them can make a withdrawal. jbuchanangb's suggestion in post 3 sounds like a route worth considering.

jonesMUFCforever

Banks can load markers that make them read the customer's notes before approving any credit. The notes will say not to approve anything.
A customer can get copies of these notes by making a SAR application (cost £10).
The best marker a bank can load to be automatically declined credit is 'unemployed'.