MSE News: Charge-free basic bank accounts unveiled

stclair

SnowTiger wrote: »

I think Natwest's Foundation account is their offering.

The applicant has to apply for a standard current account first then if this is unsuccessful they will be offered the foundation account as a last resort.

grumbler

societys_child wrote: »

Don't think this means that Nat West have to give you or anyone an account, they can choose who they wish to do business with.

Well, a shop/hotel/... can chose too who they wish to do business with. However, some grounds for refusing are explicitly prohibited by the law, like sex, age, disability, sexual orientation.

Similarly, the the Directive quoted above explicitly prohibits the bankruptcy as the reason, but Natwest CBA to comply with it and don't ever try to invent some other excuse.

SnowTiger

stclair wrote: »

The applicant has to apply for a standard current account first then if this is unsuccessful they will be offered the foundation account as a last resort.

Yes.

Presumably Rosehip54 applied for a full Natwest account, but wasn't offered a Foundation account when their application failed.

I think the Foundation account is Natwest's effort to meet its commitment to the government.

colsten

Quoting from a document that was linked to earlier in this thread:

Account opening

A Basic Bank Account will be opened for an eligible customer unless:

• The Bank is concerned that the customer will use the account unlawfully (e.g. using the account fraudulently) or has acted in a threatening, abusive or violent manner towards staff,

• Opening the account will put the Bank in a position where it might break any law, regulation, code, attestation or other duty that applies to the Bank,

• Reasonable requirements for opening a bank account are not met (e.g. providing confirmation of identity and/ or giving consent for the Bank to conduct a full credit search and credit score).

This leaves the banks with plenty of room for not offering a basic account. However, an applicant cannot any longer be turned down simply because they are presently bankrupt.

pmduk

I wonder if RBS Group might be one of the companies left out of pocket in the bankruptcy? it might explain the reticence to do business with the poster - although with my usual cynicism poor staff training is far more likely.

societys_child

grumbler wrote: »

Well, a shop/hotel/... can chose too who they wish to do business with. However, some grounds for refusing are explicitly prohibited by the law, like sex, age, disability, sexual orientation.

Yes, yes, we all know that.

Similarly, the the Directive quoted above explicitly prohibits the bankruptcy as the reason, but Natwest CBA to comply with it and don't ever try to invent some other excuse.

Is it 2016 already?

We don't have all the details, maybe there are other reasons . . .

SnowTiger

BBC News article about the fee-free offerings here:

Nine High Street banks and building societies in the UK are to launch basic bank accounts which will not charge a fee for missed payments.

The new accounts will be available from 1 January to people who fail to qualify for a full current account.

It follows an agreement between the Treasury and the industry in December last year.

Nine million basic account holders will now not be charged for missing a direct debit payment, or a standing order.

Edited for formatting from the list of accounts mentioned in the BBC article:

[B]Bank/building society   Account name[/B]

Barclays                Barclays Basic Current Account
Santander               Basic Current Account
NatWest                 Foundation Account
Ulster Bank             Foundation Account
RBS (Scotland)          Foundation Account
RBS England and Wales   Basic Account
HSBC                    Basic Bank Account
Nationwide              FlexBasic
Co-operative Bank       Cashminder
Lloyds                  Basic Account
Halifax                 Basic Account
Bank of Scotland        Basic Account
TSB                     Cash Account
Yorkshire Bank          Readycash Account
Clydesdale Bank         Readycash Account