The illogical proof of address system: is it really required by law?

SouthLondonUser

I am currently going through a bit of "proof of address drama" with my remortgage application because every lender seems to have very different and illogical rules about what kind of proof of address each accepts: some accept online statements, some don't, some accept letters from certain government bodies but not others, some don't, etc. My wife has online statements only, which the broker is saying wouldn't be accepted, etc etc etc etc...

Yesterday, however, I applied for a Monzo debit card simply by taking a picture of my passport and shooting a short video of me saying: Hi, my name is X, and I want a Monzo card.

This got me thinking: is this Bizantine system of requiring proof of address really a legal or regulatory requirement, or is it just a convention? If it were a legal requirement, I'd expect more consistency over what kind of documents are accepted and what are not.

The current system may have made sense decades ago, but now that everything is online - yet no one seems to accept online statements - it is anachronistic. Not just that: I am not convinced it does much to deter fraud, since any 7-year old with a PC could easily print a fake "proof of address", yet it does contribute to making life difficult to those who have no intention of cheating!

eDicky

What baffles me is how all the fraudsters obtain disposable bank accounts so easily, how do they prove their address with impunity..?

SouthLondonUser

Like I said, I never tried but I don't think it's hard to fake a bank statement or a council tax bill.

jonesMUFCforever

OP not everything is online - you can ask your bank for a paper statement even if you are paperless.
All benefits such as tax credits are in paper form even when applying online.

If you are not happy with the lender or a broker you can always try a different one.

Each bank/lender has a legal responsibility to identify you when you apply for its products.

Indeed it it probably more important today to be physically address verified because it is so easy to apply online - anonymously

Geoff1963

Each bank/lender has a legal responsibility to identify you when you apply for its products.

The variation between firms, might be due to how each of them has been misled by various methods ; or fined by regulators for not being able to demonstrate due diligence.

boo_star

SouthLondonUser wrote: »

Yesterday, however, I applied for a Monzo debit card simply by taking a picture of my passport and shooting a short video of me saying: Hi, my name is X, and I want a Monzo card.

I'm not going to comment on the other parts of this post but I wouldn't even consider opening a financial product with a company that wants a video record of me acting like a corporate shill, or even wants a video at all.

Are you sure that they don't own the rights to use your "verification" video in their future advertising?

SouthLondonUser

@boo_star , The question was not whether you are happy with the proof of address system, or whether you would apply to Monzo. The question was whether demanding proof of address is a legal requirement, or simply a convention applied by all except the challenger banks. Does any one know? Is there any one with a legal or compliance background?

@JonesMUFCf , not everything is online, but many things are. At least for us. Many companies charge extra if you want paper bills, which, by the way, I wouldn't want unless they were needed for this Bizantine proof of address system.
In our case:

• we receive no benefits whatsoever;
• the council tax bill is older than 3 months, so won't be accepted, but the council sends it annually only;
• the water bill is older than 3 months but we haven't received the new one yet;
• gas and electricity are online only;
• we have bank statements, but we cannot use them as proof of address because the lenders use them to verify our expenses: all the lenders I have contacted said so. There might be some lenders who behave differently but I honestly don't have the time to spend 20 more hours in call centre hell to find out.
• we should be able to get a paper credit card statement (I'll call the bank today) but we need another proof of address, and we have no idea where to get it.

In other words, just because it is straightforward for you doesn't mean it is always straightforward for all...

luvchocolate

I had a paperless account with co-op and they would not print me a ststement because "I was paperless"
It really is not as straight forward as it should be.

Chapuys

Have you actually got the extremely limited Monzo debit card (currently limited to 226 people right now) which is still in trials? Or have you just signed up to the more widely available (about 310,000 of them) Monzo prepaid card?

To your question, I've recently opened a nuba credit card as well as Tesco, RBS (Child&Co) and Nationwide debit accounts without providing any physical copies of my ID or address (except typed on the application) as they can all be verified electronically with my passport and as I am on the electoral roll and have a [STRIKE]passport/[/STRIKE]driving licence number linked to that address. I have changed a Halifax address with a signed letter from a professional in the past. I would say your broker is more antiquated than the banks themselves. What is accepted and not accepted is up to the liability of the bank or broker. Older banks may need more proof due to the legacy of 'always doing it that way' and your broker might just be covering all bases.

Enterprise_1701C

I had to send in a bank statement, they would not accept an online one.

I simply printed one from my account and they accepted that!

tacpot12

The requirement to verify your address and identity is a legal requirement under the Money Laundering regulations. These require banks to identify you and your residential address.