General Banking/Credit Questions

xlnc99

Hello everyone, i am new to this forum. I have been reading these threads for a long time for advice and suggestions and i have truly picked up great information over the years. I would like to think through my experience over the years i have picked up some knowledge of how the banking and credit agencies etc work and would be more then happy to share. I also realise there are people on here with vast more experience and knowledge then me.

I thought it was about time to join and ask some questions of my own and also answer some which i find i may be able to help other people with.

Instead of creating multiple threads, i decided to create one thread with various questions as i thought it maybe easier. If this is not the correct way to do things then i will start a new thread with different questions. If anyone could help with the answers of any of these questions, then advice would be much appreciated

A little background about me, i used to have great credit and had everything but like most people who have suffered with their credit files, bad decisions and bad timing meant a very bad credit file for me and i am now trying to re build. My biggest regrets have been ruining my chance to get credit cards for the foreseeable future as i used to have a lot and i am unfortunately at the basic bank level. I used to have multiple current accounts but at the moment am not passing credit checks to one.

1. Has anyone had a basic account upgraded without a credit check?

I have seem one or two threads about this but it doesnt go in detail and this was from many years ago. If i was to maintain a good basic account for 6 months - 1 year does anyone know if the bank you are with would upgrade without a credit check or is this a forgone conclusion? I remember someone saying santander will upgrade without a check, is this true? Any other examples?

2. Do previous bank records stay on your file for life?

I have had a nightmare with banks previously and i got into an overdraft debt with one of them who then passed it on to debt collectors and closed my account. I am wondering the effect this has on opening a new account with the same bank after 2 or 3 years. I have yet to find a true answer to this question, some say 6 years but some say banks have your file on record for 20 years or forever. If that is the case, is it impossible to get any service from that bank again for the rest of your life?

3. Applying for credit cards if you had previous debt with them?

Similar to my question above, if i had debt with a previous credit card company and they passed it on and closed my account can i get another credit card with them? They are off my credit file but they must have an internal record my account or history?

4. Can someone give me clarity on SAR forms?

I have done previous SAR forms for CIFAS but that is about it. I have read alot about SAR forms to a bank or other agencies. Can someone shed light on what a SAR form to a bank will actually entail. What information will you get exactly? I know its something about data they have on you, but what exactly. Same for synetics solution and national hunter?

5. Is there such thing as being blacklisted?

Again this ties up to questions 2 and 3 but does this exist? Is this a myth? Can you be blacklisted from a bank or credit company for life? I thought all data about you would be removed after 6 years but again ive also heard this is incorrect

6 - CITI Bank - does it still exist?

A while ago alot of people on here were talking about getting a current account with CITI bank and how they accept everyone. This was many years ago and having looked on their website it seems you cannot apply online and have to go and visit them. Is it still easy to get an account with them? Anyone had any recent success?

7. Santader Basic Account

I managed to get a santander basic account, and at first glance it is one of the worst basic accounts to get. You get two cards, one debit and one top up. You can only use the top up, the debit is for cash withdrawals. Even the top up has restrictions - no car hire, petrol pumps, online or subscriptions. Its worse then a pre paid card, even pre paid cards let you do most of these thing. Anyone have anything good to say about their basic account?

8. Using Basic Bank Accounts for Petrol Pumps

This has become a bit of an issue, but from my understanding only Barclays and Nationwide allow you to do this. Every other bank does not allow you to pay at pump. Can anyone shed light on this?

9. Debit Card Protection Scheme

I seem to come across this recently and am not too sure what this is about. Can someone please shed more light on this

10. Sending Money to an account with a different name

I have read online that banks do not check names but just sort code and account number. If this is the case can you send money to someone and put any name on there you wish too? Does it make any difference at all apart from your own reference of who you paid too?

11. PAYM. Pay a contact

I recently got an email about this facility. Ive never heard of this but upon investigation it seems you can pay someone who is a contact of yours in your phone by just their mobile number instead of entering their sort code and account number. Not a bad idea in principle, has anyone used it? What if someone has two or more bank accounts app on their phone. Which account does the money go to?

12. OPEN Banking

Another email in regards to this. OPEN banking, at first glance it didnt seem a bad idea. But then the more i think about it, the more i think we should stay away. Do we want banks knowing all our transactions through other banks? Anyone have more experience of this?

Thanks in advance.

jonnygee2

That is a lot of questions!

Have you tried Monzo or Starling (app based current accounts). They both have a reputation for giving people with bad credit history current accounts. So worth a try.

Bank records are generally kept for 6 years after the account is closed and settled. Things that were settled more than 6 years ago should not affect your credit applications (although in reality there is no way to know that they don't).

As for things like 'how does PAYM work', 'is Open banking secure', 'what's the debit card protection scheme' etc, I think you could answer these questions more efficiently by searching online.

[Deleted User]

1. It varies bank to bank. Usually it will entail one

2. 6 years on your credit files but banks can hold information on you for as long as they wish

3. You can apply. They don’t have to accept you not give you a reason for rejecting you

4. Just request a SAR on all information they hold on you. It’s as simple as that

5. There’s no credit blacklists. But a bank can choose to not provide you with their custom again is they so wish

6. Yes they do still exist. Google is your friend here

7. Define “good”? One mans good is another mans annoyance

8. It’s down to the banks preference

9. Again Google is your friend

10. It makes no odds unless that person is flagged somewhere for fraud or money laundering

11. I’ve never bothered with it. It’s easier to just do a transfer online

12. Again I’ve not used it. Each account I hold uses its own proprietary app

xlnc99

jonnygee2 wrote: »

That is a lot of questions!

Have you tried Monzo or Starling (app based current accounts). They both have a reputation for giving people with bad credit history current accounts. So worth a try.

Bank records are generally kept for 6 years after the account is closed and settled. Things that were settled more than 6 years ago should not affect your credit applications (although in reality there is no way to know that they don't).

As for things like 'how does PAYM work', 'is Open banking secure', 'what's the debit card protection scheme' etc, I think you could answer these questions more efficiently by searching online.

Hi, Yeh sorry for the vast amount of quetions, i guess they have been building up for some while and ive just not had the chance to register an account and ask them. Also, i am hoping they are good questions for anyone who comes across the thread who was previously looking for answers to such questions.

In regards to your basic bank account reply of starling and monzo. I am not a fan of just app based current accounts, i prefer the main banks and the high street ones which have a bank account. I do have basic accounts but biding my time to upgrade. Just wanted to know from experience if anyone has successfully upgraded to a current account without a credit check.

I keep reading about this 6 year rule but more concerned about the banks internal record to be honest. Do they keep files on you forever? I mean, will they reject me from services in the future because i had an upaid overdraft with them that eventually went to debt collectors and was paid off (but they already sold it by then so they have no idea if it was paid off)

I read about PAYM and OPEN Banking and i get the jist of how they work but was unsure about the points i mentioned in the post above so wanted clarity from anyone who has used such things

Thanks

[Deleted User]

The 6 year rule is for your credit files.

Banks can choose who they do and don’t want to accept as a customer for whatever reasons they choose. Whether it’s because you’re in their naughty list or not you’ll never know.

eskbanker

xlnc99 wrote: »

2. Do previous bank records stay on your file for life?

I have had a nightmare with banks previously and i got into an overdraft debt with one of them who then passed it on to debt collectors and closed my account. I am wondering the effect this has on opening a new account with the same bank after 2 or 3 years. I have yet to find a true answer to this question, some say 6 years but some say banks have your file on record for 20 years or forever. If that is the case, is it impossible to get any service from that bank again for the rest of your life?

3. Applying for credit cards if you had previous debt with them?

Similar to my question above, if i had debt with a previous credit card company and they passed it on and closed my account can i get another credit card with them? They are off my credit file but they must have an internal record my account or history?

5. Is there such thing as being blacklisted?

Again this ties up to questions 2 and 3 but does this exist? Is this a myth? Can you be blacklisted from a bank or credit company for life? I thought all data about you would be removed after 6 years but again ive also heard this is incorrect

Discussed extensively in this thread earlier in the year: https://forums.moneysavingexpert.com/discussion/5955451/how-long-does-a-bank-remember-bad-debt

xlnc99 wrote: »

4. Can someone give me clarity on SAR forms?

I have done previous SAR forms for CIFAS but that is about it. I have read alot about SAR forms to a bank or other agencies. Can someone shed light on what a SAR form to a bank will actually entail. What information will you get exactly? I know its something about data they have on you, but what exactly. Same for synetics solution and national hunter?

https://ico.org.uk/your-data-matters/your-right-of-access/ is the overview of the legal situation, in terms of what an individual has the right to ask for, but in general it's best to be clear about exactly what you're looking for.

https://ico.org.uk/for-organisations/guide-to-data-protection/guide-to-the-general-data-protection-regulation-gdpr/individual-rights/right-of-access/ goes into more detail from the organisation's perspective so can be a useful guide to what you can and can't expect....

xlnc99

!!! wrote: »

1. It varies bank to bank. Usually it will entail one

I am hoping i will get lucky and not get one if i maintain my account in good order. Got about 3 or 4 years until my CCJ drops.

2. 6 years on your credit files but banks can hold information on you for as long as they wish

That is not the answer i was looking for. I heard rumours of this. Surely that could go against you and is not allowed. I mean credit agencies hold for 6 years as do CIFAS. Why do banks use your information forever. I am looking to go back to HSBC but was hoping enough time had passed that they had closed my accounts previously. Every time i apply my old account is linked, even for a basic.

3. You can apply. They don’t have to accept you not give you a reason for rejecting you

I dont want a search on my credit report unless i know for certain the criteria, i.e if they close your records after a few years

4. Just request a SAR on all information they hold on you. It’s as simple as that

Yes i will do that but i am confused as to what a SAR actually tells you. Ive researched this alot and if anyone has an answer in laymans terms, that would be great.

5. There’s no credit blacklists. But a bank can choose to not provide you with their custom again is they so wish

Great

6. Yes they do still exist. Google is your friend here

Yes i did google but you cannot apply online anymore. Previously you could. Was wondering if anyone had success opening an account there recently with adverse credit history.

7. Define “good”? One mans good is another mans annoyance

I guess when i men good i mean offering everything a current account offers besides an overdraft. I.e Contactless, pay at pumps etc

8. It’s down to the banks preference

Very unfair but i take your point

9. Again Google is your friend

I will look in more detail for this, thanks

10. It makes no odds unless that person is flagged somewhere for fraud or money laundering

Can you expand please because i dont understand the answer.

11. I’ve never bothered with it. It’s easier to just do a transfer online

me either, just curious

12. Again I’ve not used it. Each account I hold uses its own proprietary app

Great


Thanks for your prompt reply

xlnc99

!!! wrote: »

The 6 year rule is for your credit files.

Banks can choose who they do and don’t want to accept as a customer for whatever reasons they choose. Whether it’s because you’re in their naughty list or not you’ll never know.

Yes that is big no no. Would like to no if someone who has worked in a bank or experienced this has more information. It is a bit of a grey area

xlnc99

eskbanker wrote: »

Discussed extensively in this thread earlier in the year:

Many thanks. Excellent reading in the thread. Will look in more detail about the SAR stuff. Still very confusing and from what i read i am not sure anyone is 100% certain about this SAR stuff. It does seem a bit complex. I remember reading a few threads on the forum where people did SAR stuff for national hunter and other agencies and they posted a screenshot of the forms they got back. IT seemed to be all gibberish and didnt make sense

eskbanker

xlnc99 wrote: »

2. 6 years on your credit files but banks can hold information on you for as long as they wish

That is not the answer i was looking for. I heard rumours of this. Surely that could go against you and is not allowed. I mean credit agencies hold for 6 years as do CIFAS. Why do banks use your information forever. I am looking to go back to HSBC but was hoping enough time had passed that they had closed my accounts previously. Every time i apply my old account is linked, even for a basic.

As with the other banks since GDPR was introduced, HSBC publish details of their use of personal data online, at https://www.hsbc.co.uk/privacy-notice/, so you can review how they approach it.

On the other hand, the most pragmatic approach will almost undoubtedly be to accept that you're unlikely to be able to return to HSBC and to simply stick to the rest of the market, within which there's a massive amount of choice....

xlnc99 wrote: »

Will look in more detail about the SAR stuff. Still very confusing and from what i read i am not sure anyone is 100% certain about this SAR stuff. It does seem a bit complex. I remember reading a few threads on the forum where people did SAR stuff for national hunter and other agencies and they posted a screenshot of the forms they got back. IT seemed to be all gibberish and didnt make sense

As mentioned earlier, I think the key thing is to identify what information you're looking for and what you'd do with it when you get it. It's obviously easy to say that you want to know whatever they've got, but that doesn't really help, so having an idea of where you ultimately want to go with it should allow you to frame your request appropriately. If responses do come back as gibberish then you have the right to seek clarification if not reasonably self-evident, so if, for example, data is codified in some way then you have the right to have the meaning explained.

[Deleted User]

They can refuse you at anytime without reason and hold you on an internal “blacklist” for as long as they wish. Just like any other business can.

You’re not privy to the banks lending criteria.

And one search is not harmful as the myths online make out.

CitiBank certainly won’t take someone with any kind of adverse history. That I know for a fact.