First Direct closed new joint account...

Agooner

Hi,

I would appreciate some help before deciding on how best to proceed.

My wife and I successfully opened a 1st account on 01/09. All the paperwork, cards etc prompt arrived before we went on holiday.

I called FD this morning to set up telephone security and to transfer my account to them. The security was set up and I was transferred to the account switching team.

After being on hold for 10 mins, a lady explained that my account hadn't actually been opened and that they still needed to verify my employer's details, even though she said my wife could use the account as her details were ok, and her colleague had just set up my telephone security?!

I explained to her that I was on holiday from work and that I would be back in the office in 2wk at which time they could call me on my work number - that was all they needed to verify that I worked for who I said I did. She said this timescale was too long and asked if she could contact my line manager to confirm my details. I was skeptical about this, since I've only been at the company for 2 months and needed to check with my line manager before giving her number to FD.

I asked the lady to send me an email outlining what information they required from my manager and when they would contact her, so that I could pass this along and check that she was ok with it. Alternatively they would have to wait until I had returned to work before calling me on a number they could verify.

I was a little annoyed after having spent close to an hour on the phone and made little progress.

Shortly after the call I received an email from the lady I spoke to informing me that my account has been fully assessed and that my application does not meet FD banking criteria. My newly opened account has been closed.

I need to find out from FD which criteria I didn't meet. I know banks aren't under any obligation to provide an account, but surely they are obliged to treat their customers (even if it was only for a week) fairly. I can't see what I have done wrong. I know I met their credit check criteria because the account was opened, cards etc were sent to me.

I believe that the person I spoke to decided to close my account for an improper reason.

I wanted to switch to FD because of their reputation for customer service, however, my experiences so far have been appalling.

Do I have a case with regards to complaining to both FD and the ombudsman?

Thank

giblet10

That's a pretty poor experience I agree.

First Direct made me jump through hoops when I opened my account too - I put my employers telephone number down which is our HQ in London as I work from home. They weren't happy about this and phoned me to ask a) why they couldn't call me on a local office number near to where I live (answer: because there isn't one) and b) to check that I didn't commute 200 miles a day to London!

What hit me was that these days many people work remotely and far fewer people now work in an office day in day out. FD seemed to have an issue with this.

I then had to produce a P60 which Inland Revenue did send quite quickly to be fair to them.

The customer service is ok, but not stellar as they make out and FD's product range is fairly ancient. Since I've been banking with them they have made two significant mistakes which they did put right quickly but my previous bank, IF, didn't make any mistakes in the twelve years I was with them. I only switched because IF are proactively trying to move (but not force) people away as they are not part of Lloyds' long term strategy.

My guess is that this woman has taken the hump with you because you challenged her and therefore you didn't tick all HER boxes. Do you have a case? Well, I'd like to say yes, but in reality I would just go elsewhere.

GingerBob_3

So FD think they can speak to someone at your company about you? Extraordinary! I once had a similar request from AMEX; they asked, who is the contact at your company, to which my reply was "me"; they didn't challenge that.

What are these t**sers bothered about? Your first salary paid into your account will verify your employment. I can't see why they would want anything else. In fact, I can't see why they even want that for a current account. These days, financial institutions are getting a bit too nosey for my liking. I'd go elsewhere, and write to the CEO telling him why you're doing so. They think they're doing you favour by "allowing" you to open an account with them. No, you're doing them a favour by giving them your business!

giblet10

Ginger Bob, with AMEX yes they also asked me if I was ok with them approaching my employer to get confirmation I worked for them. First Direct however do go straight to employer without seeking out specific authorisation..that said I'm sure they've got themselves covered when you sign the application form.

The problem with First Direct is that from day one their staff are brain washed into believing that both they and FD are superior to everyone else. I've known so many people who have worked for them over the last few years and their training consists of all sorts of weird stuff like talking to lemons, for example, in order to break the personality staff arrive with and rebuild it to being a First Direct personality.

Majestic12

giblet10 wrote: »

Ginger Bob, with AMEX yes they also asked me if I was ok with them approaching my employer to get confirmation I worked for them. First Direct however do go straight to employer without seeking out specific authorisation..that said I'm sure they've got themselves covered when you sign the application form.

The problem with First Direct is that from day one their staff are brain washed into believing that both they and FD are superior to everyone else. I've known so many people who have worked for them over the last few years and their training consists of all sorts of weird stuff like talking to lemons, for example, in order to break the personality staff arrive with and rebuild it to being a First Direct personality.

I do agree and sympathise, however their customer satisfaction scores in numerous surveys over the last few years speak for themselves. In that category they blow every bank out of the water

I was probably one of the lucky ones with not so many hoops to jump through, as I previously had an HSBC account.

colsten

Majestic12 wrote: »

I do agree and sympathise, however their customer satisfaction scores in numerous surveys over the last few years speak for themselves. In that category they blow every bank out of the water

It's not overly surprising that they come out top in all surveys as they are probably the only bank whose CS know about each and every single banking satisfaction survey being carried out.

Their good scores don't mean they got good products, or even good CS. Think about it.

agrinnall

Ignoring the intervening bile between the OP and here, yes, you can complain to FD, and yes, can complain further to the FOS if you're not happy with the response, but I suspect FD are not going to tell you why they closed the account and I also suspect that the FOS will agree with them that they don't have to tell you. Personally I've always felt that if a bank didn't want my business then I don't want to have any more to do with them.

baby_frogmella

OP, the reason why FD have very stringent checks is simple: they are are primarly a telephone bank so you can't exactly walk into a branch for further ID verification.

colsten wrote: »

Their good scores don't mean they got good products, or even good CS. Think about it.

Really? I'm curious to know why people rate them. Perhaps Which? are telling porkies? Perhaps N&P are rubbish as well like FD:rotfl:
http://www.which.co.uk/money/bank-accounts/reviews-ns/bank-accounts/best-banks-for-customer-satisfaction/

GingerBob_3

baby_frogmella wrote: »

OP, the reason why FD have very stringent checks is simple: they are are primarly a telephone bank so you can't exactly walk into a branch for further ID verification.

Not quite true. They are part of HSBC and as far as I'm concerned you've always been able to use an HSBC branch for FD business (I'm an FD customer).

baby_frogmella

GingerBob wrote: »

Not quite true. They are part of HSBC and as far as I'm concerned you've always been able to use an HSBC branch for FD business (I'm an FD customer).

Yes i'm fully aware they are part of the HSBC family but the only thing you can do these days (as a FD customer) at HSBC branches is withdraw or deposit funds. For anything else HSBC point you to the in-branch telephone to call FD which you can do from your living room anyway. Many many moons ago HSBC branch staff were more than happy to help FD customers...such as getting passport copies certified, printing out paper statements free of charge etc but sadly that is no longer the case

Agooner

I complained to FD via email yesterday and received a phone call today.

The advisor simply reiterated that the account was closed because it didn't meet their criteria. The lady then stated that it had initially been open because of computer error and that the required checks weren't fully completed.

I don't believe it, but there isn't any point pursuing it. I know my credit rating is good and I meet all the other prerequisites as per their terms and conditions.

The only reason I can think of is that I asked for clarification as to why they needed to verify my employer. I'm in half a mind to take it to the ombudsman as per section 48 (i think, taken from their website) in which accounts have to be closed for a proper reason. Surely, the bank would have to provide an explanation to the ombudsman should I choose to pursue the issue?

Thanks for all the contributions.