Can't open a basic account

TomJ17

I'm having an issue opening a Basic account to get things sorted out.

This has happened with both Lloyds (Cash Account) and HSBC (Basic Account) which are apparently open to people even with terrible credit as no scoring is done.

I applied for both of them (around 6 months apart) and the same thing happened. I received letters saying they needed my ID and to take it into a branch, they scan it and send it off to HQ and then I receive a letter back saying my account cannot be opened due to further checks they made coming back and saying I can't have an account.

My credit rating isn't great, hence the application for a basic account but it's not horrendous, I have no CCJ's or anything like that and I'm a bit confused why I can't even have a basic account.

sourcrates

Apparently, and I did not know this, a bank can refuse you a basic bank account, if you have more than £500 of bad debt.

However, I've seen people on here thousands of pounds in debt, and still able to open a basic account.

I suspect it may be down to the banks own policiys, or something may of been flagged up, I would keep trying the others if I were you.

https://www.citizensadvice.org.uk/debt-and-money/banking/getting-a-bank-account/

January2015

sourcrates wrote: »

Apparently, and I did not know this, a bank can refuse you a basic bank account, if you have more than £500 of bad debt.

I suspect it may be down to the banks own policiys, most banks offer basic accounts, I would keep trying the others if I were you.

https://www.citizensadvice.org.uk/debt-and-money/banking/getting-a-bank-account/

I wonder if the MSE team realise that. It definitely contradicts the advice being given on this website, i.e., "By the end of 2015, everyone will be able to have a basic bank account."

It begs the question, when does the term 'everyone' really mean 'some people'

andyfromotley

Try Co op who are 'committed' to basic accounts.

Have you checked to see that you dont have a CIFAS marker (suggesting involvement in fraud etc) it will show on your credit record. These, even if false, usually mean a withdrawal of any banking facilities.

emeraldhills

I was able to open a Lloyd's Club Rewards current account (no overdraft facility) yesterday online but to be honest I am not sure of the difference between that & a basic cash account, when both sound much the same to me, you get a debit card & can set up direct debits. After reading the terms & conditions though of the Rewards account (just tonight) I realise I will need to withdraw from the new account as there are monthly requirements attached, paying in a certain amount etc. I am looking a basic account like you to have my pension paid into & pay household bills from but it doesn't seem that straight forward. I tried Barclay's tonight & they approved me for a current account too with yet more monthly minimum requirements. Basic is the way forward for me but I don't seem able to find a basic account.

sourcrates

emeraldhills wrote: »

I was able to open a Lloyd's Club Rewards current account (no overdraft facility) yesterday online but to be honest I am not sure of the difference between that & a basic cash account, when both sound much the same to me, you get a debit card & can set up direct debits. After reading the terms & conditions though of the Rewards account (just tonight) I realise I will need to withdraw from the new account as there are monthly requirements attached, paying in a certain amount etc. I am looking a basic account like you to have my pension paid into & pay household bills from but it doesn't seem that straight forward. I tried Barclay's tonight & they approved me for a current account too with yet more monthly minimum requirements. Basic is the way forward for me but I don't seem able to find a basic account.

List here : http://www.which.co.uk/money/bank-accounts/reviews-ns/bank-accounts/best-basic-bank-accounts/

Sazzie23

Post office ?

bell123321

Barclays basic bank account? I got this a few years ago when I had a DRO and my other bank accounts got closed.

ReadingTim

It might not necessarily be related to any debts you have or poor credit scores, but other things that banks worry about like fraud or money laundering - you see stories in the papers every now and again about banks closing the accounts of customers who tried to pay in USD cheques, or make or receive payments from countries with links to terrorism - perhaps that's why? Sadly, all these stories illustrate is how seemingly arbitrary the decision making process is, and how reluctant banks are to explain the reasons behind their refusal/withdrawal of service.