Disclosing credit checks

GeriatricGenZ

Hi,

I recently reapplied for a First Direct basic current account (no overdraft) after seemingly getting rejected for the same product last year.

I thought this time I would follow it up, and after reaching out to their customer services, found out they could not explain why I was previously rejected and did not feel the need to notify me. 

What’s more, nowhere on their website (including the PDF terms and conditions) did they specify that they would conduct a hard credit check for their basic current account (no overdraft) product. Instead, they loosely allude to the fact that some products may require a credit check (without specifying which one).

As a young person, I am not only annoyed that this will now stick on my credit report, but also that a major bank does not seem to need to inform consumers of their decision (such as declining a current account). Surely in 2025/6, a simple automated email including your consumer rights (such as the right to appeal the decision), should be offered.

I would love to know what people think, and what is the current regulation.

Finally, is this just first direct, or do other bank/ conduct themselves similarly?

thank you-



p.s. Ironically, I also have an HSBC account. 

MyRealNameToo

They should have informed you the outcome of your application and very surprised that they didnt. They certainly have when I've applied in the past inc when the application for a joint account was refused as the Mrs didnt respond to their queries in time. It was a long time ago now and can't remember if it was done by email or letter. 

Its not at all surprising that they didnt won't tell you why the decision was made, no banks do and ultimately its their commercial decision so as long as its not due to a protected characteristic (sexuality, religion etc) they are free to choose who they want and dont and arent required to say why. 

Most banks say through the application process that they will be doing a check on your credit record, not going to go through a whole application just to see if it does or doesnt but would be surprised if it didnt. 

flaneurs_lobster

This bit of their website is pretty specific

Check your credit report

If you want to open a bank account at first direct, we’ll do a credit search as part of your application. 
This is done using information from the 3 credit reference agencies:

• TransUnion

• Equifax

• Experian

  I'm surprised that any bank would not notify you that an application for any product has been declined.

 Not giving the reason(s) for this rejection is not surprising, they will have criteria for acceptance and will not make those public, to do so would facilitate "gaming" of the system and might also divulge what might be business-sensitive information. Not sure why you would want a "right of appeal"? If you've answered all questions correctly and truthfully (and checked that the Credit Reference agencies are also holding correct information) then why would the bank's decision be different? There's no "right of appeal" in consumer or other law. You might have grounds for complaint if you thought you had been discriminated against illegally but that's true of all commercial interactions.

CliveOfIndia

MyRealNameToo said:

Its not at all surprising that they didnt won't tell you why the decision was made, no banks do and ultimately its their commercial decision so as long as its not due to a protected characteristic (sexuality, religion etc) they are free to choose who they want and dont and arent required to say why. 

This is a very valid point.  All financial institutions have different acceptance criteria - which are confidential and commercially sensitive.  They will never tell you what those criteria are, since it would allow people to "play the system".  As well as potentially providing internally-sensitive information to competitors.  But it's a safe bet that it won't be due to discrimination based upon a "protected characteristic" - the penalties for doing so are pretty harsh.

GeriatricGenZ said:

As a young person, I am not only annoyed that this will now stick on my credit report

No other lender will be able to see the outcome of their decision.  All they'll see is that a hard search was performed - which, in itself, is nothing at all to worry about.

GeriatricGenZ said:

but also that a major bank does not seem to need to inform consumers of their decision

That does sound most unusual - they should have informed you of their decision.  If they declined you then they should have told you - though they won't state the reasons behind their decision.

Woodstok2000

GeriatricGenZ said:

What’s more, nowhere on their website (including the PDF terms and conditions) did they specify that they would conduct a hard credit check for their basic current account (no overdraft) product. Instead, they loosely allude to the fact that some products may require a credit check (without specifying which one).

In their general terms and conditions they talk in generalities. When you applied for the specific account, the first page includes details of the credit check(s) they will perform for that product, and you will have agreed to this as part of your application.

sheramber

Are you eligible for a basic account?

They are normally for people who have bad credit and cannot get an ordinary account.

Yiu mention you have an account with HSBC 
. 

flaneurs_lobster

sheramber said:

Are you eligible for a basic account?
.

At First Direct? Don't think they offer such a product per se, unless there's a subset of the First Account?

Time2Go_25

flaneurs_lobster said:

sheramber said:

Are you eligible for a basic account?
.

At First Direct? Don't think they offer such a product per se, unless there's a subset of the First Account?

No they do not

sheramber

flaneurs_lobster said:

sheramber said:

Are you eligible for a basic account?
.

At First Direct? Don't think they offer such a product per se, unless there's a subset of the First Account?

Since the OP has applied twice for a basic bank account I think it is evident that they do. 

born_again

sheramber said:

flaneurs_lobster said:

sheramber said:

Are you eligible for a basic account?
.

At First Direct? Don't think they offer such a product per se, unless there's a subset of the First Account?

Since the OP has applied twice for a basic bank account I think it is evident that they do. 

FD do not do a basic bank account (HSBC do). They are also choosy about who they let in.

flaneurs_lobster

born_again said:

sheramber said:

flaneurs_lobster said:

sheramber said:

Are you eligible for a basic account?
.

At First Direct? Don't think they offer such a product per se, unless there's a subset of the First Account?

Since the OP has applied twice for a basic bank account I think it is evident that they do. 

FD do not do a basic bank account (HSBC do). They are also choosy about who they let in.

OP can confirm but they may mean "basic" as in not having an overdraft facility.