RBS refusal to open current account

BobMahelp

Newbie here, so please be gentle. My situation is this ;

-I was born and bred in the UK but moved abroad to work and live over 30 years ago. 
-In 2017, knowing I was going to return to the UK, I opened a 'Foundation account' with the RBS which was offered to expats.
-I returned permanently to the UK to retire over 6 months ago I bought a house outright (no mortgage), have almost a million in savings with the RBS in the foundation account, and have a monthly pension income of almost 5K. 
-I asked the RBS to please open a current account for me so I can at the very least benefit from a contactless card and have the opportunity to apply for a UK credit card. 
-They refuse to do so, citing credit history issues (although they refuse to give exact details).
- I have complained to them, stating my situation and that I know that because I lived abroad I have little or no credit history. I asked them to show some common sense and flexibility, and pointed them towards the sum in my account and my income. 
-They still refuse to open a current account. 

My questions to you are ;

-are the RBS completely bound by the lack of ctredit history ? Are they unable to judge a situation of its own merits and show some flexibility ?
-do I have the right to complain ?
-if they still refuse, can anyone advise which banks would be likely to be more flexible and allow me to open a current account ?

Thanks to all and anyone who can answer...

eskbanker

They're not obliged to offer you an account if they choose not to, so complaining isn't likely to be fruitful.

Have you registered on the electoral roll yet?

Probably worth checking your credit files in case there are any red flags there that might spook other banks (above and beyond simple lack of history): https://www.moneysavingexpert.com/loans/check-free-credit-report/

Carrot007

BobMahelp said:

-are the RBS completely bound by the lack of ctredit history ? Are they unable to judge a situation of its own merits and show some flexibility ?

They can do as they want. Either is an option it is their choice.

BobMahelp said:

-do I have the right to complain ?

You can, but it would serve no purpose except wasting time (your as well) and putting up costs for everyone.

BobMahelp said:

-if they still refuse, can anyone advise which banks would be likely to be more flexible and allow me to open a current account ?

One of the new online ones probably.

PRAISETHESUN

RBS have complete control over who they do and do not take on a customers - you can't complain about this. They have no obligation to provide you with a current account, and they aren't going to tell you why as their decision criteria are commercially sensitive. For whatever reason you just don't fit there customer profiles - it's most likely the thin credit file but it could be for any reason really (eg. they want to cross-sell mortgages but you already own a house, etc). I'd apply elsewhere and see how far you get.

[Deleted User]

Go to another bank, Santander refused me an account once and gave no reason. Other banks were fine. RBS also operate their own internal credit system. 

BobMahelp

Thanks to all for your answers. 

I suspected strongly that RBS have complete control over account opening/refusal without having to give reasoning. It's just that it's very frustrating as an (ex) expat knowing that your financial future...through no fault of your own....is decided, lirelly, by someone pushing a button and 'computer, says no'. 

Especially as I already bank with them, you may have thought that they would show some common sense and flexibility, but apparently not. 

I don't want borrowing or overdraft facilities. Pretty much all I want is a contactless debit card and the chance in the future to apply for a credit card which will make renting a car abroad (when we can travel) much easier. 

I've heard from ex-colleagues who returned to the UK from living abroad how difficult and inflexible some things can be due to a lack of credit history. Seems like it's all true. 

eskbanker

BobMahelp said:

It's just that it's very frustrating as an (ex) expat knowing that your financial future...through no fault of your own....is decided, lirelly, by someone pushing a button and 'computer, says no'.

That's an exaggeration, one bank's decision about whether to offer you an upgraded account may be driven by that, but it's hardly your entire financial future as such!  The situation is only temporary, while you rebuild a history.

Even though you don't want borrowing or overdraft facilities, pretty much all full-function current accounts have to cater for the possibility that you may become overdrawn, even accidentally, and hence an application is credit-checked despite you not looking for credit as such.  The credit-checking process is known for not taking assets into account, rightly or wrongly.

jbuchanangb

I'm sure you will find another bank that will open an account for you. Then a written letter to the department of RBS which handles the "Foundation account" informing them that you will shortly commence the process of drawing out your funds and closing the account, and giving them the reason. I expect you will find a financial advisor who will help you find a more suitable place to keep almost a million pounds than in that account which no doubt pays a derisory amount of interest.

naedanger

It does seem a bit of a strange commercial decision on their part since they could presumably give you no overdraft facility, and perhaps even ask you to put a specified amount in a term account (that does not permit early withdrawal in any circumstance) to cover any likely credit risk.

I would have thought all banks will differ at least slightly in their requirements so it is definitely worth trying other banks, probably including some of the newer entrants. 


 

[Deleted User]

RBS / NatWest Foundation accounts appear to now come with a contactless debit card, so call them and request one. 

Thrugelmir

BobMahelp said:

I've heard from ex-colleagues who returned to the UK from living abroad how difficult and inflexible some things can be due to a lack of credit history. Seems like it's all true. 

Credit history can only be built with time. There's no shortcuts. Whether you are 18 or returning from outside the country. Credit card companies will be as equally as demanding. In due course NatWest will undoubtedly allow the account to be upgraded. Foundation accounts only being offered not directly applied for.