Bank account closed and can't open another one

zjoliveira

Two weeks ago, I received a text message from Halifax saying that they would be closing my current account, savings account, ISA and debit/credit cards, after having conducted a review of my banking with them. This came completely out of the blue, as I have banked with them for 14 years. They are adamant they cannot disclose the reason (apparently it is an algorithm which works this out and my name was flagged!) and I will no longer be their customer in 50 days, so I need to move my money, set up new direct debits, etc.

They gave me two pieces of advice:
1. Contact CIFAS to find out if you are on the fraud register.
2. Open a bank account with another bank so you can start the transfer process.

I contacted CIFAS and they hold no records for my name/addresses.
I opened a current account with Nationwide which went through only for them to message me the following day saying that they were going to close my bank account (reasons not to be disclosed). Having not had any bank account / card / financial product rejected before in my life, it is clear that Nationwide's decision is linked to Halifax's.

Worse, it seems as though every bank will reject my application, seeing that they can see something I am not privy to and have no idea what it is. My application with Nationwide produced a hard search on my credit score, so its rejection made my credit score go down.

I have also checked Experian and Equifax which, aside from the change resulted by Nationwide's rejection, show that my credit score is high and steady.

Where do I go from here? I can't keep applying to banks only to be rejected, as this will impact my credit score just before I need to remortgage but I also need to understand what it happening...

Any ideas would be greatly appreciated.

Ed-1

zjoliveira said:

Two weeks ago, I received a text message from Halifax saying that they would be closing my current account, savings account, ISA and debit/credit cards, after having conducted a review of my banking with them. This came completely out of the blue, as I have banked with them for 14 years. They are adamant they cannot disclose the reason (apparently it is an algorithm which works this out and my name was flagged!) and I will no longer be their customer in 50 days, so I need to move my money, set up new direct debits, etc.

They gave me two pieces of advice:
1. Contact CIFAS to find out if you are on the fraud register.
2. Open a bank account with another bank so you can start the transfer process.

I contacted CIFAS and they hold no records for my name/addresses.
I opened a current account with Nationwide which went through only for them to message me the following day saying that they were going to close my bank account (reasons not to be disclosed). Having not had any bank account / card / financial product rejected before in my life, it is clear that Nationwide's decision is linked to Halifax's.

Worse, it seems as though every bank will reject my application, seeing that they can see something I am not privy to and have no idea what it is. My application with Nationwide produced a hard search on my credit score, so its rejection made my credit score go down.

I have also checked Experian and Equifax which, aside from the change resulted by Nationwide's rejection, show that my credit score is high and steady.

Where do I go from here? I can't keep applying to banks only to be rejected, as this will impact my credit score just before I need to remortgage but I also need to understand what it happening...

Any ideas would be greatly appreciated.

Send subject access requests to the other fraud prevention agencies:

https://nhunter.co.uk/subject-access-request/
https://www.synectics-solutions.com/data-sar

I assume you've already sent one to CIFAS (any negative data on CIFAS does not show on credit reference agency reports to customers, only to firms).

MattMattMattUK

I would suggest you contact CIFAS again, I wonder if you submitted your SAR in the short period between being send the letter and your original bank having reported to them.

FrankRizzo

I would go to the press. I would even flag this to Martin Lewis to bring media attention.

Have you ever used your Halifax accounts for buying cryptocurrency?

Section62

FrankRizzo said:

I would go to the press. I would even flag this to Martin Lewis to bring media attention.

Seems very premature until the OP has a better idea of what has happened.

Publicity is not always good.

km1500

I believe you are legally entitled to a basic bank account - others may know the details and how you get one

MattMattMattUK

FrankRizzo said:

I would go to the press. I would even flag this to Martin Lewis to bring media attention.

There is no point in raising this with Lewis, it is too small for him and you will not even get to speak to him. The press are also unlikely to care either. The first thing to do is to establish what has earned you the CIFAS marker.

km1500 said:

I believe you are legally entitled to a basic bank account - others may know the details and how you get one

Not at all, no bank has to give you an account. Banks have a duty to specifically not allow accounts to be used for fraud, having a CIFAS marker means a customer is a fraud risk and so refuse to open an account. 

A bank must refuse to open a basic bank account for someone they believe will use it for fraud or money laundering.

A CIFAS (Credit Industry Fraud Avoidance System) is a fraud marker against a person's name. Banks automatically search the CIFAS register when someone applies for an account. The marker can result in applications for credit being refused and can lead to the closure of an existing bank account.

The CIFAS marker can remain on the register for up to six years. 

friolento

It's not necessarily a CIFAS marker that stopped your accounts and your application - especially as CIFAS told you there is no marker. Also, if fraud was the reason, Halifax wouldn't have given you 50 days, they would have immediately locked your account.

You need to look for other reasons, such as

1. are you financially linked to anyone else (according to your credit files)?
2. could you be the victim of ID fraud - can you see accounts on your credit files that you don't recognise?
3. has your right to reside in the UK expired for any reason?
   

friolento

MattMattMattUK said:

km1500 said:

I believe you are legally entitled to a basic bank account - others may know the details and how you get one

Not at all, no bank has to give you an account. Banks have a duty to specifically not allow accounts to be used for fraud, having a CIFAS marker means a customer is a fraud risk and so refuse to open an account. 

A bank must refuse to open a basic bank account for someone they believe will use it for fraud or money laundering.

A CIFAS (Credit Industry Fraud Avoidance System) is a fraud marker against a person's name. Banks automatically search the CIFAS register when someone applies for an account. The marker can result in applications for credit being refused and can lead to the closure of an existing bank account.

The CIFAS marker can remain on the register for up to six years. 

The OP reported I contacted CIFAS and they hold no records for my name/addresses. So a CIFAS fraud marker doesn't come into it

friolento

zjoliveira said:

I contacted CIFAS and they hold no records for my name/addresses.
 

Is the plural a spello or do you have multiple addresses?

MattMattMattUK

friolento said:

MattMattMattUK said:

km1500 said:

I believe you are legally entitled to a basic bank account - others may know the details and how you get one

Not at all, no bank has to give you an account. Banks have a duty to specifically not allow accounts to be used for fraud, having a CIFAS marker means a customer is a fraud risk and so refuse to open an account. 

A bank must refuse to open a basic bank account for someone they believe will use it for fraud or money laundering.

A CIFAS (Credit Industry Fraud Avoidance System) is a fraud marker against a person's name. Banks automatically search the CIFAS register when someone applies for an account. The marker can result in applications for credit being refused and can lead to the closure of an existing bank account.

The CIFAS marker can remain on the register for up to six years. 

The OP reported I contacted CIFAS and they hold no records for my name/addresses. So a CIFAS fraud marker doesn't come into it

As was pointed out in previous posts, they may have contacted CIFAS before the record was applied.