Chase UK discussion

masonic

anotheruser said:

Is it protected by the FCS?  Is it registered on the UK Banking Register?

If it were not it would be operating illegally. It's FSCS and Financial Services Register by the way. A UK banking licence is a requirement to offer banking services within the UK, even a savings account. It's worth pointing out Chase is a brand, not a company. It is a trading name of JP Morgan Europe Limited (a UK company).

See https://register.fca.org.uk/s/firm?id=001b000000MfFBzAAN

See "Trading names" > "Chase"

See "What can the firm do in the UK" section > Banking > Accepting Deposits

anotheruser

It's still not really a bank.
Those who say it is - what do you call a bank that can pay direct debits and standing orders?  Because it can't be the same as Chase - they don't do that.  And what's more fun is they can't even give a real reason why.

wmb194

anotheruser said:

It's still not really a bank.
Those who say it is - what do you call a bank that can pay direct debits and standing orders?  Because it can't be the same as Chase - they don't do that.  And what's more fun is they can't even give a real reason why.

Paragon Bank is a bank but it doesn't offer current accounts. Nationwide Building Society isn't a bank but it does.

Daliah

anotheruser said:

It's still not really a bank.
Those who say it is - what do you call a bank that can pay direct debits and standing orders?  Because it can't be the same as Chase - they don't do that.  And what's more fun is they can't even give a real reason why.

Of course it is a bank, even if you'd rather they were not. There is no distinction between a bank and really a bank.

You are right, Chase do not currently offer DDs, but they do offer SOs, so you need to get your facts straight. As to whether they have a reason for not offering DDs - I am not aware they have publicly stated what the reason is, but I am quite certain that they have one for it. Most likely they haven't yet got the appropriate system support and appropriately trained staff. They might also still need to get additional regulatory approval, and they definitely need to update their T&Cs to cater for DDs. What they have publicly stated, though, is their intention to provide DDs "soon".



If you were saying that people who need DDs cannot presently use Chase as their only current account provider, I would obviously agree with you. But that doesn't mean that they aren't a bank or not a 'real' bank.

As an aside, there are also other UK financial institutions which do not offer DDs and yet do legitimately call themselves banks.

masonic

anotheruser said:

Those who say it is - what do you call a bank that can pay direct debits and standing orders?

We don't need a different name for banks that offer certain services, or that don't offer them. A bank is defined as an institution that is licenced to accept deposits and make loans. Specific types of account or account features do not come into it. The Bank of England lists three key features of a bank in this guide, which you might find helpful: https://www.bankofengland.co.uk/knowledgebank/what-do-banks-do

As highlighted in earlier posts, banks do not need to offer current accounts at all. When they do, they don't have to offer all of the features available in the most feature-rich current account. Current accounts would typically be defined as such by the ability to access your money on demand, the ability transfer money directly between yourself and third parties, and to enable you to pay for goods and services in a retail setting. Clearly there are multiple ways of achieving that, from operating a branch network, ATMs, issuing chequebooks, debit cards, credit cards, offering Faster Payments, Standing Orders, Direct Debits, Paym, overdrafts, etc. Different people will consider a different selection of those features essential, and that would influence which accounts they'd open. Not offering one or more of those things does not mean the institution is not a bank, nor that the account isn't a current account, but some means of withdrawing cash, paying retailers and making money transfers is a requirement. Chase appears to have launched with a minimum viable product, and more features have been promised.

Daliah

On the subject of functionality missing from Chase: just seen on Facebook that they, or Mastercard, will not process credits to the Mastercard. Refunds yes, credits no. Credits could occur if you want to withdraw a win at a bookie, a casino, or the National Lottery. As gambling wins must be paid to the method of payment used, people are now finding themselves with wins they cannot lay their hands on.

Don't use the Chase card for bookies, casinos or to buy lottery tickets

OceanSound

Dealing with some of these 'challenger banks' are a challenge in itself. Revolut is a case in point. I checked their website today, seems they still haven't been granted UK banking license. They say they are 'licensed'. You have to access a link to see that when they say 'licensed' they are referring to the EU licence. 

wiseonesomeofthetime

Daliah said:

On the subject of functionality missing from Chase: just seen on Facebook that they, or Mastercard, will not process credits to the Mastercard. Refunds yes, credits no. Credits could occur if you want to withdraw a win at a bookie, a casino, or the National Lottery. As gambling wins must be paid to the method of payment used, people are now finding themselves with wins they cannot lay their hands on.

I possibly encountered this when claiming compensation from West Midlands Railway for a delayed service.

The credit to my account was declined.

Chase said they didn't know why.

West Midlands Railway said contact Chase!

Never got to the bottom of it.

I suppose, if the compo was classed as a Credit and not a Refund, that would support Daliah's comment.

You would think Chase would have been able to confirm that though, should that have been the case 🤷‍♂️

Marchitiello

anotheruser said:

Daliah said:

The rejection happened a few days later in some back office, where a penpusher determined it was not a UK Bank

Define "UK Bank".
Without some basic tools that are used by (I would think) nearly everyone who has a bank account, I'm not sure it qualifies.
Is it protected by the FCS?  Is it registered on the UK Banking Register?

Yes, it is registered and protected in the UK: 
“ Your deposit is eligible for protection by the Financial Services Compensation Scheme (FSCS).

The information sheet and exclusions list are available to view in the app. For further information about the compensation provided by the FSCS, refer to the FSCS website at https://www.fscs.org.uk/

Chase is a registered trademark and trading name of J.P. Morgan Europe Limited. J.P. Morgan Europe Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Our Financial Services Register number is 124579. Registered in England & Wales with company number 938937. Our registered office is 25 Bank Street, Canary Wharf, London, E14 5JP, United Kingdom.”

  

Marchitiello

Timbosaurus said:

Daliah said:

gt94sss2 said

I would be more disappointed at Chase UK not being more proactive in contacting iWeb to resolve the issue instead.

The Chase CS operative was absolutely clueless, even after consulting with his manager. He seriously tried to give me some spiel about Chase being the oldest bank in America. Then moved on to say that the Chase card can be used everywhere Mastercard is accepted. He had no idea who iWeb are, and certainly was not interested in helping me. Perhaps I should raise a complaint with Chase, too.

It's worth noting that Chase don't actually control or own their bank-end systems, it has all been outsourced from a firm called '10x Banking', they provide them with cloud-based services in compliance with all the various regs and standards, and a white-label app for them to slap their branding on.  If you look on 10x's website you'll see how little they've actually done to customise it.  Whilst their customer support people have the admin powers to deal with waylaid transactions etc. they have effectively zero control over the actual back-end technical functioning of their bank.

This is a great piece of information sharing and that helps make more sense for the lack of DD at the moment:

they have launched on a fairly vanilla platform with very small customisation and are now working on further customisation like the DD may be. This is fairly common in major IT development and makes a lot of sense.

Again, I do not see all the negativeness and this obsession for not being suitable as the “only account” when for years we have promoted on this forum the use of multi accounts, each for a purpose. Well and simple they are still running a controlled launch (you need to show interest, they then invite you to apply, etc) and have offered some inviting launch offer to go with it (the cash back at Amazon up to 31/12 was great, and the 1% for a year, including foreign spending, is simply unmatched). Yes, it cannot do other things, but there should be other accounts for that.