Kroo bank discussion

masonic

mouseclick said:

I assumed Halifax and Kroo have access to live information at any time because they display credit info in the app, so surely they can see it as well.

That would be a flawed assumption. Apps, and websites for that matter, can display information to you that comes from a different source and that they themselves have not accessed. The way in which the arrangement works in this case is detailed in the terms you sign up to when you activate the service. They specify that the score is fed through to the customer directly by TransUnion.

mouseclick said:

My Halifax account was opened in 2013, that was the last time they did a full credit check. I was offered the overdraft in 2021, and they didn't do a hard check. I assumed they would have relied on more updated information rather than information that is 8 years old.

That's my experience as well, and I opened my account even earlier that 2013. It's been reported in other threads, by those in the know about Halifax specifically, the precise number of credit products you can open before another search is triggered. For those with a long relationship with a bank, the internal score will have increasing importance and may become the main thing that influences lending decisions. This is why there is often a pattern of lenders offering increasing limits over time as a customer builds up a history with them.

mouseclick said:

I assume Open Banking also helps banks decide whether or not someone can get an overdraft. Experian use this for Boost. Incidentally, I don't plan to use the overdraft because it is not a cheap way to get credit, but I like overdrafts on each account in case I ever make a mistake. I'd prefer to pay interest than have a transaction bounce.

Open Banking can be used in this way and some lenders design their scoring around getting access to a main current account. Again, it would be in the T&Cs what can be done with the information, given the primary incentive in most cases is for the customer to bring their financial information together in one place. OB is unlikely to be the sole determinant of a decision on an application for credit, because a customer can easily choose which accounts to link, avoiding those where they might have a poor record, so it is unlikely the full credit search is going away.

Agree that it can be useful to have an overdraft facility in place to limit the consequences of financial mishaps. It can sometimes be beneficial in terms of showing you can manage a higher level of overall credit responsibly, depending on the overall picture within your full credit report.

ryan92

I've been using Kroo as my main account since November and today have ran into yet another major issue with them.
Every single month my Salary gets flagged for review and then early in the morning they approve it so no big deal really just a bit of an inconvenience.

Today is no exception, yet they are not releasing the funds until I've confirmed the full name of the organisation which is easy enough but also the date of birth of the sender!

PloughmansLunch

ryan92 said:

I've been using Kroo as my main account since November and today have ran into yet another major issue with them.
Every single month my Salary gets flagged for review and then early in the morning they approve it so no big deal really just a bit of an inconvenience.

Today is no exception, yet they are not releasing the funds until I've confirmed the full name of the organisation which is easy enough but also the date of birth of the sender!

That's a pretty big red flag considering many people have mortgage/rent/DDs etc coming out on or the day after payday. Kroo has been in timeout on my financial naughty step since withholding various in/out deposits between my other accounts.

AmityNeon

ryan92 said:

I've been using Kroo as my main account since November and today have ran into yet another major issue with them.
Every single month my Salary gets flagged for review and then early in the morning they approve it so no big deal really just a bit of an inconvenience.

Today is no exception, yet they are not releasing the funds until I've confirmed the full name of the organisation which is easy enough but also the date of birth of the sender!

What are they expecting? The date the organisation was formed? The birthdate of the payroll officer, or the individual who literally authorised the transaction on the organisation's behalf? I would raise a complaint considering it's your regular incoming salary with an established pattern of transactions (all previously flagged); it's an utterly disproportionate response that jeopardises your financial obligations and credit history.

I would also definitely recommend using a different bank for your salary. For such a new bank, Kroo is already notorious for holding incoming everyday payments for review and asking for the sender's personal details. Kroo offers nothing unique except the highest interest rate for a current account, but it's a rate easily beaten by multiple easy/instant access savings accounts.

masonic

Totally unreasonable, and that's before considering the absurd request for the sender's DOB. I don't think they have any legal grounds for harvesting the personal details of third parties. How can it help them verify the transaction is genuine, and how are they going to know whether or not you've just randomly picked a date? Imagine if the credit was something like a Premium Bond win, or tax refund, whose date of birth would be relevant then?

I think this request ought to be shared with the ICO, because this is crying out for a Legitimate Interests Assessment.

Badboi

Just received my Kroo card, think I will solely using it as a spending card rather than transferring my salary etc to them, for now anyway.  

pridehappy

There's very little reason to use the Kroo account, to me it just blends in with all the other new companies attempting to get a slice of the e-banking industry. I'd probably end up going with Starling if I did want an e-bank, but I'll be sticking personally with ones with some branches.

username

masonic said:

Totally unreasonable, and that's before considering the absurd request for the sender's DOB. I don't think they have any legal grounds for harvesting the personal details of third parties. How can it help them verify the transaction is genuine, and how are they going to know whether or not you've just randomly picked a date? Imagine if the credit was something like a Premium Bond win, or tax refund, whose date of birth would be relevant then?

I think this request ought to be shared with the ICO, because this is crying out for a Legitimate Interests Assessment.

Having followed this thread I don't understand how or why Kroo would need the sender's birth date for verification? How does it verify it is a genuine payment?!

It sounds utterly bizarre, as I doubt this piece of information wouldn't be transmitted as part of the BACS or FP data specifications, so I do not know how Kroo would supposedly 'verify' this information?

I would have concerns about this bank if they are just collecting this information under the guise of fraud prevention, as well as holding legitimate, regular payments such as salary that every other bank has no problems dealing with.

ircE

Just to add to the list of semi-complaints and quibbles, I requested to close my account last month and it was "closed" on 18th April. However, the app still works, the account's still visible, etc. and very little has actually changed, even now. Having asked their customer service about this, they say whilst they have closed the account I can still see/do things... "just in case". Not a complaint, but just a bit odd.

wiseonesomeofthetime

Just in case of what? 🤷‍♂️

If it's closed surely the only function that may work is access to statements.

Transactional activity should not be possible.

Weird outfit.