Lloyds/ Halifax ban

[Deleted User]

Hello everyone,

This is my first post on the forum, and I am writing to gain some insight and understanding.

I was a Lloyds/Halifax customer from 2021. I then closed my accounts because I moved to other banking providers.

Some time in 2024, I tried to open a bank account with Lloyds and Halifax, but they kept offering me only a basic bank account (yes — my credit rating wasn’t the best). At the same time, I had a normal current account with NatWest and TSB, with no issues — I still have those accounts.

As I wasn’t happy with the basic bank account, I kept closing the basic accounts and tried to open new ones with LBG, hoping I’d be accepted for a full current account. I was not aware that this might cause a problem. 

I contacted Lloyds/Halifax, and they told me that there were over 95 applications in total during 2024. Since then, I’ve been unable to open any Lloyds/Halifax accounts, as all of them have been closed the next day or the application process stops halfway through. Customer service cannot provide any insight or advice on whether I would be successful in the future.

I submitted an appeal letter to Halifax two weeks ago through the branch and also made an online complaint. The complaint was not upheld. I still haven’t received any outcome regarding my appeal, which I addressed to the Operational Team/Account Closure Team.

I want to emphasise that I simply haven’t had any bad intentions — I just wanted to open a full current account with LBG, so I kept trying, and I wasn’t aware that this might prevent me from opening an account entirely. I requested my SAR from Lloyds, and I haven’t found anything specific, apart from a note that the indicator/markers 624/652 (I believe) were added and all services withdrawn.

I checked my CIFAS record multiple times, and there is no record. Again, I haven’t had any bad intentions — I just wanted to bank with LBG again.

Does anyone know if I have any chance of getting a basic account with LBG in the future, or if a permanent ban has been imposed?

Is there any way or process to contact operational departments to discuss this?

Thank you for your time and insight, if anyone has such knowledge or experience!

Brie

No experience of this but I wonder if it's like applying for credit cards where you need a good long gap before you try again.  95 applications in one year means you were applying about twice a week so I'm not surprised you weren't successful - more like you looked desperate!  

Frankly I'd suggest you leave this alone for at least a year, maybe two.    Meanwhile there's lots of other banks that may want your business.

Isthisforreal99

What's the obsession with LBG, they are middle of the road.

Are you seriously saying you made 95 different applications during 2024? Hopefully all didn't result in a hard search.

Ultimately, no bank has to give you an account and pretty clear they don't want your custom.

DE_612183

obviously 95 applications in a calendar year will be a red flag for money laundering - did you try and open them online or in a branch?

They don't have to give you an account, and certainly not a type of account you want if they don't want to.

Is there any particular reason you want LBG?

[Deleted User]

DE_612183 said:

obviously 95 applications in a calendar year will be a red flag for money laundering - did you try and open them online or in a branch?

They don't have to give you an account, and certainly not a type of account you want if they don't want to.

Is there any particular reason you want LBG?

Some applications were submitted in the branch, some through the app, and they never resulted in a hard search. 

There’s no particular reason for LBG apart from customer service and the banking app that I really like. I don’t have any issues with open accounts anywhere else. 

DE_612183

[Deleted User] said:

DE_612183 said:

obviously 95 applications in a calendar year will be a red flag for money laundering - did you try and open them online or in a branch?

They don't have to give you an account, and certainly not a type of account you want if they don't want to.

Is there any particular reason you want LBG?

Some applications were submitted in the branch, some through the app, and they never resulted in a hard search. 

There’s no particular reason for LBG apart from customer service and the banking app that I really like. I don’t have any issues with open accounts anywhere else. 

What type of account are you after?

As far as I can see the options are:

• Classic
• Club Lloyds ( Package account )
• Premier ( Package )
• Club Lloyds Silver

What is this "basic" account you are talking about and what is the "full" account?

[Deleted User]

DE_612183 said:

[Deleted User] said:

DE_612183 said:

obviously 95 applications in a calendar year will be a red flag for money laundering - did you try and open them online or in a branch?

They don't have to give you an account, and certainly not a type of account you want if they don't want to.

Is there any particular reason you want LBG?

Some applications were submitted in the branch, some through the app, and they never resulted in a hard search. 

There’s no particular reason for LBG apart from customer service and the banking app that I really like. I don’t have any issues with open accounts anywhere else. 

What type of account are you after?

As far as I can see the options are:

• Classic
• Club Lloyds ( Package account )
• Premier ( Package )
• Club Lloyds Silver

What is this "basic" account you are talking about and what is the "full" account?

So, I kept applying for Classic Account. By ‘basic account’ I meant the basic current account for customers who are declined for any other account due to credit score/ credit history. Basic account is usually offered when you are unsuccessful in applying for any other account. 

ChargebackCharlie

DE_612183 said:

What is this "basic" account you are talking about and what is the "full" account?

That would be this one:

https://www.lloydsbank.com/current-accounts/all-accounts/basic-account.html

HobgoblinBT

Look at it from the bank’s point of view. 

 A customer with a poor credit rating closes their account in 2021.  Then three years later, during the course of the year 2024 they make over 95 applications  where accounts were opened and closed the same or the following day.  Each application to open an account costs £x to process with searches, audit etc.  Then this former customer who has wasted the bank’s time and resources by opening and closing over 95 accounts complains that the bank has not offered the account that they want.  Any automated process would no doubt decline your application due to your time wasting.  If the application was referred to anyone to review, I can’t see anything that you have said to justify overriding the system based decision.

If you did the equivalent in your local supermarket, ie fill a basket with goods then change your mind leaving the staff to return goods to the shelf do you think you could repeat this 95 or more times before being banned and being branded as a time waster?

I am not surprised that the bank has not upheld your complaint.

Mark_d

LBG think there's something odd going on with all your applications.  A reasonable person would simply go to another bank if LGB are rejecting you.

Personally I just can't understand your obsession with wanting to join a bank that don't want you.  You say you have Natwest and TSB accounts - why can't you use them for your banking?  If you're wanting better customer service, there are banks like First Direct, Monzo, Starling, Chase, Nationwide

EarthBoy

95 applications in one year and you still won't take no for an answer?  Any sensible person would have given up long ago.   

I think where you went wrong is in closing all the basic accounts you were given and then reapplying.  It seems clear to me that Lloyds have got you down as a time waster and want nothing to do with you.  What you should have done is accept the basic account, and Lloyds might have upgraded you after a while.  For now, you need to forget Lloyds and move on.