NatWest refuse to remove their hard search.

Ramon1

Hi all.

I've been a NatWest current account customer since 2018.
In December 2020 I got an idea that it might be good to open another NatWest current account for rewards. However, I was planing to open it in 2021 after applying for another product with a different bank. Just out of curiosity, and perhaps because I had nothing better to do that December day, I decided to have a look at what the NatWest application process looks like, whether my personal details will be pre-filled, etc. OK, my details were pre-filled, I typed in some additional info about my income which has increased since 2018, clicked Next, but I did not proceed to the final stage of the application. I just cancelled it simply because, like I said, I wanted to do it after the other application in early 2021 which is more important for me.

At this point you all probably have an idea of what happened. Of course, NatWest hard searched me, even though I never proceeded to the final stage of the application. What I expect from a normal bank is collect up your info first and then run a search. I filed a complaint with NatWest and received an answer that "The application process does not necessarily start at the end when you click a complete button because it is a stage by stage process. I can confirm we’ve followed the right process and there has been no bank error. I’m sorry this is not the response you were hoping for."

I objected that this will appear on my files as "application for credit", which is not what happened. Since I never actually applied for anything, I find this nonsensical and misleading for other lenders. If I had really applied for a new product then I would have received a letter or an email informing me about the outcome of the applications. Is that correct? I haven't received anything at all! I don't know whether I was approved or declined, what my OD limit would be, or anything else. Yet NatWest are obiously insisting on keeping the "application" on my files. What's worse, it looks like it's actually 2 searches, not just 1.  If I decided to proceed to the final stage and finish the application, would that mean 3rd search or maybe even 4th search? It looks like each time you press the Next button, they run another hard search.

NatWest in their reply also said it is "clear on their website" that this will happen. But I think it is not. They gave me this link - edit, MSE system won't let me to post the link here since I'm a new member. Just google: "NatWest How we use your information". That's the page they sent me a link to.

Is any part of the website making it clear that I will be hard searched at the very beginning of the application? Is this what other banks do as well? Because I think they don't.

So I ended up with a new search(es) for literally nothing. Now it will look on my files like I have applied for credit and got rejected because there will be a hard seach without any new account opened following the search. I'm really angry about this.

They even said, I can take it to the financial ombudsman "although they hope I will not". Do you think there's any chance they will remove it?


Thanks!

Ramon1

And this is why I think they are going to add 2 searches, not just one...

[Deleted User]

I wouldn't even worry about it.  A couple of searches on a well managed file are irrelevant and it's not worth expending any effort on.

[Deleted User]

Ramon1 said:

Hi all.

I've been a NatWest current account customer since 2018.
In December 2020 I got an idea that it might be good to open another NatWest current account for rewards. However, I was planing to open it in 2021 after applying for another product with a different bank. Just out of curiosity, and perhaps because I had nothing better to do that December day, I decided to have a look at what the NatWest application process looks like, whether my personal details will be pre-filled, etc. OK, my details were pre-filled, I typed in some additional info about my income which has increased since 2018, clicked Next, but I did not proceed to the final stage of the application. I just cancelled it simply because, like I said, I wanted to do it after the other application in early 2021 which is more important for me.

At this point you all probably have an idea of what happened. Of course, NatWest hard searched me, even though I never proceeded to the final stage of the application. What I expect from a normal bank is collect up your info first and then run a search. I filed a complaint with NatWest and received an answer that "The application process does not necessarily start at the end when you click a complete button because it is a stage by stage process. I can confirm we’ve followed the right process and there has been no bank error. I’m sorry this is not the response you were hoping for."

I objected that this will appear on my files as "application for credit", which is not what happened. Since I never actually applied for anything, I find this nonsensical and misleading for other lenders. If I had really applied for a new product then I would have received a letter or an email informing me about the outcome of the applications. Is that correct? I haven't received anything at all! I don't know whether I was approved or declined, what my OD limit would be, or anything else. Yet NatWest are obiously insisting on keeping the "application" on my files. What's worse, it looks like it's actually 2 searches, not just 1.  If I decided to proceed to the final stage and finish the application, would that mean 3rd search or maybe even 4th search? It looks like each time you press the Next button, they run another hard search.

NatWest in their reply also said it is "clear on their website" that this will happen. But I think it is not. They gave me this link - edit, MSE system won't let me to post the link here since I'm a new member. Just google: "NatWest How we use your information". That's the page they sent me a link to.

Is any part of the website making it clear that I will be hard searched at the very beginning of the application? Is this what other banks do as well? Because I think they don't.

So I ended up with a new search(es) for literally nothing. Now it will look on my files like I have applied for credit and got rejected because there will be a hard seach without any new account opened following the search. I'm really angry about this.

They even said, I can take it to the financial ombudsman "although they hope I will not". Do you think there's any chance they will remove it?


Thanks!

 Why are you even bothered? Its just a search! 

Ramon1

Deleted_User said:

I wouldn't even worry about it.  A couple of searches on a well managed file are irrelevant and it's not worth expending any effort on.

Possibly, but I still think their application process is flawed if it runs hard searches at the beginning of the application. Isn't this just idiotic?
I don't know whether you checked the website I mentioned in my OP, but I think the website is not clear about this.  It only says "We also share your information with credit reference agencies, so we can...". It neither mentions "hard search" or "full search" nor does it say when this search will be carried out. Is it too difficult for them to add one simple warning to the application process? Something like "By clicking on the Next button we will carry out a full credit check".
 
It may not be worth the hassle, but I still think they're wrong and they will do it again and again to other people if nobody complains. This should definitely be fixed.

Ramon1

It obviously is worth the hassle for them! They would get involved with the FOS rather than simply remove the pointless search. Thus, I'm wondering, is there any benefit for the bank in keeping the search on my files? Or conversely, is there any loss to them if they remove it??

Ramon1

_shel said:

  Why are you even bothered? Its just a search! 

Because I already have 2 other searches on my Experian report from other banks (got approved for both products) and like I said, I wanted to apply for one more in the early 2021. With 2 additional searches from NatWest it's now way too many searches in a short period.  Yes, these two are on Equifax, but I don't know which bank is going to check which report, so it can make a difference between getting approved or declined.

[Deleted User]

Ramon1 said:

Thus, I'm wondering, is there any benefit for the bank in keeping the search on my files? 

It reduces the number of manual workarounds they have to do. 

MattMattMattUK

Ramon1 said:

_shel said:

  Why are you even bothered? Its just a search! 

Because I already have 2 other searches on my Experian report from other banks (got approved for both products) and like I said, I wanted to apply for one more in the early 2021. With 2 additional searches from NatWest it's now way too many searches in a short period.  Yes, these two are on Equifax, but I don't know which bank is going to check which report, so it can make a difference between getting approved or declined.

One has to question if the repeated application for lost of different credit presents a greater issue than a hard search in itself. The bank's algorithms are likely to flag up that you applied for and opened two new credit accounts, on top of what you would have had before. Further applications, especially in the current economic climate would be indicative of someone struggling financially. It also seems very odd that you are so desperate to amass so much available credit. 

jay1804

Ramon1 said:

Deleted_User said:

I wouldn't even worry about it.  A couple of searches on a well managed file are irrelevant and it's not worth expending any effort on.

Possibly, but I still think their application process is flawed if it runs hard searches at the beginning of the application. Isn't this just idiotic?
I don't know whether you checked the website I mentioned in my OP, but I think the website is not clear about this.  It only says "We also share your information with credit reference agencies, so we can...". It neither mentions "hard search" or "full search" nor does it say when this search will be carried out. Is it too difficult for them to add one simple warning to the application process? Something like "By clicking on the Next button we will carry out a full credit check".
 
It may not be worth the hassle, but I still think they're wrong and they will do it again and again to other people if nobody complains. This should definitely be fixed.

It happened to me as well, made a complaint and nothing came out of it. Hard search will gone in a couple months.

Ramon1

MattMattMattUK said:

One has to question if the repeated application for lost of different credit presents a greater issue than a hard search in itself. The bank's algorithms are likely to flag up that you applied for and opened two new credit accounts, on top of what you would have had before. Further applications, especially in the current economic climate would be indicative of someone struggling financially. It also seems very odd that you are so desperate to amass so much available credit. 

Both are for rewards.
One is a credit card which I pay off in full each month and the other is a current account with no overdraft. I hope lenders are not too dumb and can work out that this is not something that a struggling person would typically do. Or do people in financial difficulties usually apply for new current accounts with no overdraft and pay off their credit cards in full?