Can't open savings account

Vendee

My wife and I have been using fixed term savings accounts for about 10 years now. We are both retired, mortgage paid up years ago, don't need to take out loans and the one credit card we have is joint with me as the named account holder. We pay the CC balance off monthly.

Last week my wife's fixed account with Oaknorth matured and we noticed that Atom bank has a better rate so she withdrew the funds from Oaknorth and tried to open an Atom account. I have used Atom for about 5 years and I currently have a fixed term account with them. 

After giving all my wife's details to Atom, they refused to open a savings account, stating that they use your credit rating to verify identity. She tried another bank... same result.

I'm furious. She wants to invest money, not borrow it. Using a credit agency to verify someone's identity is lazy and discriminatory. 

400ixl

Why are they failing to identify your wife? Is she registered on the electoral role at your address?

lr1277

I can't answer your point about needing a credit file to open a savings account.

However there is no such thing as a joint credit card in the UK. Say you are the primary card holder, your wife would be a secondary card holder and this fact would not be included in her credit file. As the primary card holder all the credit card details and transactions will be held against you on your credit file. Also you are responsible for paying for any debts incurred on both your card and your wife's card.

To increase the entries on your wife's credit file, your wife has 2 possible ways forward.

1) If she doesn't have one, get a pay monthly mobile phone contract. This is the usual advice given on these boards for those without a credit file.

2) Your wife could try and get her own credit card. Not saying it will happen because of the thin credit file. Her best bet would be to try a card provided by her bank. Failing that try the card company where you hold your card.

It would be useful for your wife to have her own credit card. Should the primary card holder die the secondary card holder's card will/should stop working as soon as you inform the card company.

As an aside my mum never had a credit card. She was a secondary card holder on my dad's card. She was a stay at home wife. Some time after turning 65, Nationwide offered her a credit card. Her pension didn't go into the Nationwide joint current account. Nor did my dad's pension go into Nationwide. I think the mortgages were joint but like you, long paid off by that time. But they offered and she took up the offer. This was useful after dad passed and mum needed to pay for things.

molerat

Vendee said:
After giving all my wife's details to Atom, they refused to open a savings account, stating that they use your credit rating to verify identity. She tried another bank... same result.

I'm furious. She wants to invest money, not borrow it. Using a credit agency to verify someone's identity is lazy and discriminatory. 

They are not using the CRA to check her credit rating, they are using it as an identity check.  Money laundering regs mean they have to verify the person they are accepting funds from.  There is no discrimination and there is no laziness.  If she has little reportable activity then they may not be able to verify her, have you checked her files ? With 2 banks failing there must be something amiss.

eskbanker

Vendee said:

I'm furious. She wants to invest money, not borrow it. Using a credit agency to verify someone's identity is lazy and discriminatory. 

On what grounds do you believe they're discriminating?

born_again

Vendee said:

My wife and I have been using fixed term savings accounts for about 10 years now. We are both retired, mortgage paid up years ago, don't need to take out loans and the one credit card we have is joint with me as the named account holder. We pay the CC balance off monthly.

Last week my wife's fixed account with Oaknorth matured and we noticed that Atom bank has a better rate so she withdrew the funds from Oaknorth and tried to open an Atom account. I have used Atom for about 5 years and I currently have a fixed term account with them. 

After giving all my wife's details to Atom, they refused to open a savings account, stating that they use your credit rating to verify identity. She tried another bank... same result.

I'm furious. She wants to invest money, not borrow it. Using a credit agency to verify someone's identity is lazy and discriminatory. 

So given that, are you still living at this address, or have you moved in the last 3 year?

Is she on the electoral role at your address?

CRA's are used for address verification, do not understand why you think it's lazy. If banks had to do it themselves, it would take a lot longer.

Flugelhorn

definitely sounds like she lacks much in the way of a credit file - has her own bank account? if so can be fairly easy to open a savings account with them

ManyWays

Have you looked at her credit reports, is there anything at all on them? Having a second card on your credit card wont appear on her credit records. If all the utility bills are in your name you can ask to get her added. 

Vendee

Thanks for the replies. My wife is on the electoral register. We have lived at the same address for the past 30 years. She has savings accounts in her own name but our current account is joint. Our credit card is in my name with my wife being an additional card holder. I'm not sure she has ever applied for credit in her name. The reason I feel that the banks have been lazy and discriminatory is that they are using a credit agency to establish her identity when there are more appropriate methods. The link between your identity and how creditworthy you are is non existent. She is being discriminated against because she has never had any debt. As for the significance of two banks refusing her an account, perhaps they use the same credit rating agency. Atom back said they used "Transunion".

Flugelhorn

Vendee said:

Thanks for the replies. My wife is on the electoral register. We have lived at the same address for the past 30 years. She has savings accounts in her own name but our current account is joint. Our credit card is in my name with my wife being an additional card holder. I'm not sure she has ever applied for credit in her name. The reason I feel that the banks have been lazy and discriminatory is that they are using a credit agency to establish her identity when there are more appropriate methods. The link between your identity and how creditworthy you are is non existent. She is being discriminated against because she has never had any debt. As for the significance of two banks refusing her an account, perhaps they use the same credit rating agency. Atom back said they used "Transunion".

I am not sure that this is the case - I have no debt and not had credit / mortgage for over 15 years 2 addresses ago but have no trouble opening accounts. I have utility bills / current accounts in my name etc maybe that is the key? 

eskbanker

Vendee said:

She is being discriminated against because she has never had any debt.

Have they formally told you this or are you just speculating?

Has she actually checked her credit files to verify that there's nothing untoward or inaccurate on there (contrary to your assertion, credit files aren't only created and maintained for those in debt!)?

https://www.moneysavingexpert.com/loans/check-free-credit-report/