Difficulty opening bank acc

cheffy1

Hi all, I have been trying to help my mum open a higher interest current account, as she is about to inherit £40k, and I wanted to help her earn some interest rather than leaving it earning nothing in her metro acc.

Have applied for TSB 5% acc and tesco 3%, but both were instant rejections. (No overdraft wanted on either)

Didn't want to apply for the Santander 123 just yet, as feeling like it will just be another rejection.

I have helped her look into her credit history to see if anything stood out (she had a IVA that ended in 2011)

All that's showing is her metro acc and her vanquis c/c. No defaults etc

She is retired with a low pension income (approx £9000 PA)
The credit card is at its limit (3.5k)

My thinking is that low income + high C/c debt in comparison to that income is making her an unattractive customer to the banks.

Funnily enough, I'm on a DMP with multiple defaults, and have instantly been accepted for the same accounts!

My thinking now is wait for the inheritance to arrive in the next couple of weeks, pay off her C/C (she will be keeping it) and try applying for other current accounts once the CRAs have updated.

Anyone with any other ideas, advice or comments?

I wasn't sure if I should post this on the bank acc board or the credit file board

Paul_1977

Banks can turn you down for a whole range of reasons. I was turned down by Santander, when earning and with no debt.

Whereas TSB said yes straight away.

I would suggest you could try appealing, mentioning the 40k, they can only say no.

LabRatty

Suggest you visit a branch and explain the situation - it may make a difference.
I was initially turned down for a TSB account despite no CC debt or defaults. When I queried in the branch if this would stop me being accepted for a joint account with OH, they investigated, said the problem had been a "glitch in the system" and opened both.
As you have suggested, with a cheque in her hand I suspect your mum may become more desirable to them...
Good luck
LR

bigadaj

The iva may well still be affecting things, depending in the dates this could have an effect for another 18 months.

cheffy1

bigadaj wrote: »

The iva may well still be affecting things, depending in the dates this could have an effect for another 18 months.

Do you think so? It started Jan 2006 and ended 2011

I've been unable to find any reference to the IVA when checking her credit file.

jonesMUFCforever

cheffy1 wrote: »

Do you think so? It started Jan 2006 and ended 2011

I've been unable to find any reference to the IVA when checking her credit file.

Would she have had any debts with the banks you have attempted to open with?

cheffy1

jonesMUFCforever wrote: »

Would she have had any debts with the banks you have attempted to open with?

No. Although she did have debts with Halifax that were included in the IVA, so possibly some shared info with TSB still.

Think she just going to wait now until she can deposit the cheque into her metro bank and then pay off the C/c.

Will then probably try and go into a santander branch to try and open a 123 Acc.

If all else fails, she is going to have to make do with her 1% metro savings account:(

jonesMUFCforever

TSB is no longer part of Lloyds - and any old debts were kept on Lloyds' books so I don't think that is a reason for the decline.

System

They still share some back office functions.

jonesMUFCforever wrote: »

TSB is no longer part of Lloyds - and any old debts were kept on Lloyds' books so I don't think that is a reason for the decline.

xylophone

She can do a little better than 1% while she is waiting by using savings accounts.

She might try a plan initially of paying off the credit card in full and opening a savings account with Tesco - after a couple of months this might open the way to a couple of current accounts.

After the card is paid off, she might consider trying to transfer her existing current account to a Santander 123?

AnotherJoe

Can you go into a bank branch with the 40k cheque and use that to open the account. Set up a meeting in advance to do it. Santander (as you mention) would seem to be an obvious choice.