Santander 123 current account refused

aaj123

I applied for a Santander 123 current account using the Quidco link (hoping for the £55 cashback). I specifically opted not to apply for the 123 credit card and also opted to not apply for any overdraft facility. To my surprise, I received a letter today stating that they are unable to open the account for me based on various factors including the information on my application and the credit check. As is usual in such cases, the reason is not anything more specific than this.

Why on earth would a bank refuse to open a current account where no credit facilities have been applied for? Just for info, I have current accounts with Halifax and First Direct and this is the first time I have seen a bank refusing a current account application (where no overdraft was sought). Has this happened to anyone else?

dunstonh

As is usual in such cases, the reason is not anything more specific than this.

That is usually because the failure to meet credit requirements is all the staff member is usually told. Not what is actually causing you to fail their credit check.

Why on earth would a bank refuse to open a current account where no credit facilities have been applied for?

Because you are only credit scored on application. Not for future credit facility requests. Plus, you can still go overdrawn even if you dont have an pre agreed overdraft facility.

Just for info, I have current accounts with Halifax and First Direct and this is the first time I have seen a bank refusing a current account application (where no overdraft was sought). Has this happened to anyone else?

Yes it happens to lots of people who fail credit checks. Maybe you have too many credit applications happening too quickly or maybe the fact you have too many current accounts. Most people have one or two (the second being with the same bank). Why do you need three with different banks? It increases the risk of cross firing taking place.

aaj123

dunstonh wrote: »

Why do you need three with different banks? It increases the risk of cross firing taking place.

That is a simple one. To get the sweeteners offered by each bank. For example Halifax pay £5 each month, FD pay £100 on opening, the Santander one offered cashback and 3% interest, etc. It is usually a simple matter to meet the terms and conditions of each bank account and enjoy benefits of all the accounts.

dunstonh

aaj123 wrote: »

That is a simple one. To get the sweeteners offered by each bank. For example Halifax pay £5 each month, FD pay £100 on opening, the Santander one offered cashback and 3% interest, etc. It is usually a simple matter to meet the terms and conditions of each bank account and enjoy benefits of all the accounts.

Too many credit scores in a short period (typically 6-12 months) can work against you. Have you had 2 or more credit scored applications (of any type) in the last 12 months?

Abble

This has just happened to me and I am FURIOUS!!!

I have an excellent credit report, only one other bank account (this was a joint account to pay bills from). I dont think its any coincidence that a) my salary wouldnt be paid directly in b) I didnt ask for an overdraft and c) I didnt request a credit card.

SANTANDER are a joke.

dreaming

[QUOTE=Abble;63951945
I have an excellent credit report, only one other bank account (this was a joint account to pay bills from). I dont think its any coincidence that a) my salary wouldnt be paid directly in b) I didnt ask for an overdraft and c) I didnt request a credit card.[/QUOTE]


I don't think it is as simple as that as I opened a 123 account with Santander last month and did not request overdraft or credit card (although have since applied for cc successfully), and do not have salary (pension) paid in. Instead my pension is paid to my Nationwide a/c and I manually transfer the £500 required for interest to be paid. I do however have the full £20k deposited to gain maximum interest, and adequate direct debit cashback to mitigate the £2 fee.

bigadaj

Abble wrote: »

This has just happened to me and I am FURIOUS!!!

I have an excellent credit report, only one other bank account (this was a joint account to pay bills from). I dont think its any coincidence that a) my salary wouldnt be paid directly in b) I didnt ask for an overdraft and c) I didnt request a credit card.

SANTANDER are a joke.

As for dreaming above, I've opened as a second account, fully funded to 20k and don't pay salary in, no overdraft and no credit card.

The fact you only have one other account may be an issue or they may simply think they won't make enough money out of you, though I that case they should have turned me down as they'll be losing money on me.

A bit of advice is just to accept this and move on, there are other options though for smaller sums, and ultimately if someone doesn't want to do business with me I just accept it and move on. Dummies out of prams is never an edifying site, at least not in a grown up.

ponbeam

Have you moved address recently ? Are you on the electoral role ?

14bill

bigadaj wrote: »

A bit of advice is just to accept this and move on, there are other options though for smaller sums, and ultimately if someone doesn't want to do business with me I just accept it and move on. Dummies out of prams is never an edifying site, at least not in a grown up.

I too was refused on a joint account application. No real reason given, just a general 'there are many factors taken into consideration.........I will be trying to find out why - it's not a question of prams and dummies, this is an advantageous account to have at the mo, and I want to find out if there is a way to secure one.

In our case, we returned to the UK in March after 12 years of living abroad but we are on the electoral roll and we did have UK bank accounts and credit cards during that period. We were going to pay in £600 a month, but I didn't tell them (because they didn't ask over the phone) that we were going to pay in a £18,000 lump sum and I wonder if that would make a difference. I checked our credit scores with Experian and they are excellent. We have 2 credit cards which we've had for about 20 years, a mobile phone contract and a Royal Mail Online Business credit account. So the only things I can see against us are the period abroad, and the fact that we were going to keep our old current account open, although we would be prepared to close it. Anyway, we will see how we get on.

Bankers have proved themselves to be the scum of the earth, and it's a little annoying that they should be able to turn down an upright citizen without a proper explanation. :mad:

Smithers37

14bill wrote: »

Bankers have proved themselves to be the scum of the earth, and it's a little annoying that they should be able to turn down an upright citizen without a proper explanation. :mad:

No they haven't. You must be confusing investment bankers with every day bankers. Besides, it's not your right to have an account with them. I know it's annoying, but they haven't done anything wrong here.

I would be inclined to check who they use as a CRA, and contact the CRA to see why it was declined. Then perhaps you can go back and re-apply?

bigadaj

14bill wrote: »

I too was refused on a joint account application. No real reason given, just a general 'there are many factors taken into consideration.........I will be trying to find out why - it's not a question of prams and dummies, this is an advantageous account to have at the mo, and I want to find out if there is a way to secure one.

In our case, we returned to the UK in March after 12 years of living abroad but we are on the electoral roll and we did have UK bank accounts and credit cards during that period. We were going to pay in £600 a month, but I didn't tell them (because they didn't ask over the phone) that we were going to pay in a £18,000 lump sum and I wonder if that would make a difference. I checked our credit scores with Experian and they are excellent. We have 2 credit cards which we've had for about 20 years, a mobile phone contract and a Royal Mail Online Business credit account. So the only things I can see against us are the period abroad, and the fact that we were going to keep our old current account open, although we would be prepared to close it. Anyway, we will see how we get on.

Bankers have proved themselves to be the scum of the earth, and it's a little annoying that they should be able to turn down an upright citizen without a proper explanation. :mad:

You have selectively quoted me, also the dummies out of prams was specific to the poster I quoted, not from anyone who has been turned down.

A business relationship is always primarily based on the fact that either party thinks that they will benefit from the arrangement, primarily by making profit. This is no doubt the case for Santander though as is stated before I haven't made this my main account, am transferring only high value direct debits to negate the fee and will only really use for savings for the relatively high interest rate.

I wouldn't complain about the specific bankers here, though the actions of their colleagues elsewhere is the major root cause for the fact at people are desperately scrabbling a round for an account paying 3%.