Application rejection shows as open account in credit file

icanteven

I opened a Nationwide flex direct account online a few months ago and the application went through and was accepted. A few days later I checked my mail to see a letter with the usual debit card + info and another letter saying that they've closed the account due to security reasons. The letter was dated a day after the welcome letter. I called them and they said they do checks after approving my application (apparently it's in the terms and conditions of the application). The person assured me that it won't show in my credit report because they couldn't open my account in the first place. Dubious considering the welcome mail but I let it be because there was nothing in my credit report at the time. Checked it a month later and the Nationwide account is in my report and shows as closed. I'd leave it be except I already have another account that was only open for a month (TSB closed it because someone stole the card from the mail and they said I was negligent, see my other thread for more details). I'm fine with having my application rejected but are they allowed to just open and close an account like that (and leave a trail in my credit report). At least a rejection would only stay in my report for a year.

At this rate, my credit report is looking really dodgy and I'm worried I won't be able to get approved for anything else (am planning on getting a new credit card). Is this something normal and I'll just have to wait a year or so to get some distance from this incident before applying for anything?

Ed-1

icanteven wrote: »

I opened a Nationwide flex direct account online a few months ago and the application went through and was accepted. A few days later I checked my mail to see a letter with the usual debit card + info and another letter saying that they've closed the account due to security reasons. The letter was dated a day after the welcome letter. I called them and they said they do checks after approving my application (apparently it's in the terms and conditions of the application). The person assured me that it won't show in my credit report because they couldn't open my account in the first place. Dubious considering the welcome mail but I let it be because there was nothing in my credit report at the time. Checked it a month later and the Nationwide account is in my report and shows as closed. I'd leave it be except I already have another account that was only open for a month (TSB closed it because someone stole the card from the mail and they said I was negligent, see my other thread for more details). I'm fine with having my application rejected but are they allowed to just open and close an account like that (and leave a trail in my credit report). At least a rejection would only stay in my report for a year.

At this rate, my credit report is looking really dodgy and I'm worried I won't be able to get approved for anything else (am planning on getting a new credit card). Is this something normal and I'll just have to wait a year or so to get some distance from this incident before applying for anything?

I'd be more concerned about fraud scoring rather than credit scoring. I'd be sending a subject access request to CIFAS to see if TSB has recorded anything on there which would cause another bank to decline an application after passing the initial credit checks.

StopIt

Ed-1 wrote: »

I'd be more concerned about fraud scoring rather than credit scoring. I'd be sending a subject access request to CIFAS to see if TSB has recorded anything on there which would cause another bank to decline an application after passing the initial credit checks.

I'd second this.


If accounts are being closed, especially after a fraud alert, it's highly likely you have a CIFAS marker.


If that's the case, don't expect to be able to open an account for 6 years if you can't get it removed. It'll likely be linked to the TSB issue so that needs urgent follow ups. If they have blamed you, then that could be the source of the CIFAS marker.

ForeverAwake

If that's the case, don't expect to be able to open an account for 6 years if you can't get it removed. It'll likely be linked to the TSB issue so that needs urgent follow ups. If they have blamed you, then that could be the source of the CIFAS marker.

It's illegal for a lender to reject an application based on what information CIFAS holds about you. Having a CIFAS does not mean you'll be rejected, it just means they're likely to do more checks before approving the application such as taking a closer took at your credit, electoral roll, requesting ID & address verification documents and they also may wish to speak with you over the phone for security questions.

Candyapple

ForeverAwake wrote: »

It's illegal for a lender to reject an application based on what information CIFAS holds about you. Having a CIFAS does not mean you'll be rejected, it just means they're likely to do more checks before approving the application such as taking a closer took at your credit, electoral roll, requesting ID & address verification documents and they also may wish to speak with you over the phone for security questions.

LOL are you joking? It absolutely means you will be rejected.

A quick search of some threads on here about the effect of CIFAS markers below. I have read many threads on here before from posters stating that not only have they not been able to apply for any new credit, but also existing bank accounts AND credit cards they have held have also been closed. A CIFAS marker is no joke.

https://forums.moneysavingexpert.com/discussion/5647079
https://forums.moneysavingexpert.com/discussion/4735225
https://forums.moneysavingexpert.com/discussion/5279801