Issues with Raisin savings platform who refuse to say why they can't invest money. Are they a con?

smjxm09

Just want peoples thoughts.  My son has opened an account with the savings platform Raisin.  They act as a third party to a number of banks and is a Money Saving Expert best buy. He placed money into a Raisin account where my son gets to decide which institution Raisin will forward the money to.     First he selected ISbank which rejected the application. He then selected Aldermore which also rejected the application.  Both times he got sent the following message:

Thank you for using our savings service, unfortunately, your Aldermore Bank Plc savings account application was unsuccessful.

Due to regulatory obligations designed to protect both our customers and Raisin UK, our Customer Services Team and Aldermore Bank Plc is unable to inform you why your application was unsuccessful. We're sorry for any inconvenience this causes you. 

So what is going on, as he has no problems with other direct investments?  Have they got him down as a money launderer even though they allowed him to put money in their account?  Why won't they tell him why there is a problem?

[Deleted User]

No, it's obviously not a con.

Check to see if he put his details correctly and then check his CIFAS files. 

smjxm09

Is there a charge to gain access to the CIFAS files as it defeats the object of trying to save money?

[Deleted User]

No. But even if there was, it would definitely not defeat the object of trying to save money!

jamesd

What he might try is opening an account with Aldermore Bank directly and seeing what happens that way.

The only regulation that would prevent giving reasons is related to money laundering and suspected criminal activity or suspicious conduct. Others would just be ordinary commercial reasons like not liking  particular part of the UK, having all the money desired from other savers or not wanting the amount contemplated by a particular individual. non-criminal reasons also include things like failing the electronic identity verification check but that's something which can be discussed with a customer and sorted out.

smjxm09

Just an update.  Raisin have very limited opening hours so my son has no option but to message them, which he did on the 13th, asking for the account to be closed and the money returned to its nominated bank account.   Apart from an automated response informing him they will respond within 3 days they haven't replied so they are hanging on to the money while not communicating.

EdSwippet

Unless Raisin themselves have also blocked his accounts -- and from what you wrote, it doesn't sound that way, at least so far -- then your son should be able to withdraw his money from Raisin using their online site, and without waiting for customer service to do that for him.

To do this, log in to Raisin, then use the "My Raisin UK Account" tab and go to "Account actions -> Withdraw funds". Raisin's web site navigation is a bit different to many others, so it's possible he just missed that option.

Chordeiles

I appreciate it's worrying that you don't get to hear why the applications were declined.  My experience with Raisin (at a similar time as the old posts in this thread) suggests its likely that they ******-up on your son's behalf.  They are worse than useless.

ShinyStarlight1

A similar thing happened to me some while back. I never found out why. I could’ve proven where my source of money was coming from but that request never came, just a flat “no but we won’t tell you why”. Alarming, then infuriating. I opened my accounts directly with the banks and building societies, and would never now use Raisin even if I could.

Sea_Shell

For balance...I've been using Raisin with no issues for the last couple of years.   I have a significant amount with them, in a ladder of fixed term accounts.

I've never had an application declined, so I don't know what might be triggering it.

I've just applied for a Hoist Easy access account (5%), and I don't anticipate any problems.

Maybe I've now jinxed it 😉