Starling Bank refusing bank account application

jadex

PRAISETHESUN said:

BeAl said:

Hoenir said:

Starling have had well documented issues recently with lax controls over account opening and management. Probably all manner of reasons why they are declining new accounts while they address historic issues, 

Thank you. He's just done a credit score - 999 out of 999! 

You need to ignore the score/rating - Starling doesn't see this. Instead you need to look at the actual data on your credit files to see if anything is incorrect. Look for all your accounts being reported correctly, no missed payments, defaults, CCJs, CIFAS markers, etc. You need to check your files from all 3 CRAs - Experian, Equifax and TransUnion - as not every lender reports to every CRA.

Ultimately it will be a commercial decision based on risk. There's just something about your husband that they don't like. They aren't obliged to offer him an account, nor as they required to say why he has been rejected. Best course of action would be to look for an account elsewhere rather than trying to convince Starling to reverse their decision.

But Starling couldn't denied account on the basis of what is or isn't reported by CRAs as they don't do hard credit check. All those possible defaults, late payments, CCJs, and other credit related issues have no bearing as Starling can't see them.

PRAISETHESUN

jadex said:

PRAISETHESUN said:

BeAl said:

Hoenir said:

Starling have had well documented issues recently with lax controls over account opening and management. Probably all manner of reasons why they are declining new accounts while they address historic issues, 

Thank you. He's just done a credit score - 999 out of 999! 

You need to ignore the score/rating - Starling doesn't see this. Instead you need to look at the actual data on your credit files to see if anything is incorrect. Look for all your accounts being reported correctly, no missed payments, defaults, CCJs, CIFAS markers, etc. You need to check your files from all 3 CRAs - Experian, Equifax and TransUnion - as not every lender reports to every CRA.

Ultimately it will be a commercial decision based on risk. There's just something about your husband that they don't like. They aren't obliged to offer him an account, nor as they required to say why he has been rejected. Best course of action would be to look for an account elsewhere rather than trying to convince Starling to reverse their decision.

But Starling couldn't denied account on the basis of what is or isn't reported by CRAs as they don't do hard credit check. All those possible defaults, late payments, CCJs, and other credit related issues have no bearing as Starling can't see them.

The point was more that OP needs to do more than look at the credit score/rating to determine if their credit reports are okay or not. They need to delve into the actual data to see if something is awry. There are still things that Starling will see from a soft search that might need fixing.

ramblingon

I had a Starling account for years, and my partner tried to open one so we could have a joint account. Her application was turned down despite excellent credit history, so I've moved my account to Monzo and we now have a joint account there.

andy.armstrong

I received an email from them recommending opening a saver account, which I promptly tried to do so I could earn interest on my money following them removing interest from their current account. And guess what, I couldn't apply and they wouldn't tell me why even though they had sent me an email saying 'why not apply for this'. Am closing and moving having only just opened the account 2 months ago

Hoenir

BeAl said:

Hoenir said:

Starling have had well documented issues recently with lax controls over account opening and management. Probably all manner of reasons why they are declining new accounts while they address historic issues, 

Thank you. He's just done a credit score - 999 out of 999! 

Starling has a very low score with the FCA and PRA !!!   That's the issue they are being forced to address. 

TheBanker

You can read about Starling's issues here: https://www.fca.org.uk/news/press-releases/fca-fines-starling-bank-failings-financial-crime-systems-and-controls



In particular:

The Authority identified serious concerns with Starling’s anti-money laundering and financial sanctions framework during its review of financial crime controls at challenger banks in 2021. As a result of those concerns, Starling commenced an AML Enhancement Plan to address the FCA’s concerns and voluntarily accepted a requirement from the Authority in September 2021 (the VREQ) not to open any new accounts for high or higher risk customers while it improved its AML control framework.

When the Authority imposes a requirement on a firm, it is imperative that the firm ensures it can comply with the terms of the requirement, including adapting its internal controls and monitoring its compliance with the requirement. Starling

however failed to implement all of the underlying requirements and subrequirements of the VREQ properly and did not adequately monitor its compliance with the terms of the VREQ following its imposition. As a result, over the Relevant

Period, Starling opened 54,359 accounts for 49,183 high or higher-risk customers in breach of the terms of the VREQ. 

It is perhaps not surprising that Starling are very nervous about taking on new customers at the moment. 

GentleGiant2

They regularly refuse accounts. 

I have busines and personal accounts, yet they refused a savings account! 

I have best part of 100k with them! 

Just look elsewhere, but I hear many failed accounts. 

It is likely to have zero to do with anything they found on the credit report.