Lloyds bank closed new bank account

Dunk91
Dunk91 Posts: 21 Forumite
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in Budgeting & bank accounts
So for a few years I've had a basic lloyds account, my credit hasn't been great for a few years but since improved so I applied for a current account, everything was okay, direct debits transferred. I thought everything was okay, even received my new Lloyds debit card today Been told today they will be closing my account due to their fraud prevention check they do after the credit check, as I closed my basic account as I thought my new account was okay, now am without a bank account. Direct debits will be out in 5 days so am a little screwed. What's my options and what should I do? Are there any recommendations for a different bank to apply for?
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  • eskbanker
    eskbanker Posts: 30,938 Forumite
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    If there is some sort of fraud marker against you then this will be visible to all banks, so if Lloyds are declining you for fraud-related reasons then all the others will as well.

    At the risk of stating the obvious, you need to find out as much as you can about the fraud-related reason behind their decision - chances are that Lloyds will say they can't tell you any more so you'll need to ascertain what's going on via CIFAS, read up on what you need to do at https://www.cifas.org.uk/contact-us/subject-access-request and search this forum for other mentions of CIFAS and how serious this is....
  • Dobbibill
    Dobbibill Posts: 4,134 Ambassador
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    Did you have any unusual transactions going through your account recently?
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  • System
    System Posts: 178,093 Community Admin
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    I would suggest you avoid Halifax, TSB or Bank of Scotland as they have links with Lloyds.

    Any except the above would work. However, Nationwide FlexBasic or Barclays Basic seem about the most functional for basic accounts.

    If you've got an actual fraud marker then they'll likely be closed/refused too.
  • d123
    d123 Posts: 8,621 Forumite
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    Heng_Leng wrote: »
    I would suggest you avoid Halifax, TSB or Bank of Scotland as they have links with Lloyds.

    Isn’t TSB completely independent of Lloyds these days and owned by Sabadell?
    ====
  • Anthorn
    Anthorn Posts: 4,362 Forumite
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    Dunk91 wrote: »
    So for a few years I've had a basic lloyds account, my credit hasn't been great for a few years but since improved so I applied for a current account, everything was okay, direct debits transferred. I thought everything was okay, even received my new Lloyds debit card today Been told today they will be closing my account due to their fraud prevention check they do after the credit check, as I closed my basic account as I thought my new account was okay, now am without a bank account. Direct debits will be out in 5 days so am a little screwed. What's my options and what should I do? Are there any recommendations for a different bank to apply for?

    You don't have any options apart from to attempt to open a bank account at a different bank. Lloyds have decided to not provide you with a bank account so there you go.

    As previously stated in this thread avoid banks in Lloyds Banking Group. While TSB is independent of LBG they use software inherited from LBG and we can only wonder how far that extends into data sharing.

    Try opening a basic bank account but as previously stated if there is a fraud marker on your credit history you are unlikely to get one. In that case try Virgin Money Essentials Current Account or go the way of pre-paid.
  • Don80
    Don80 Posts: 300 Forumite
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    d123 wrote: »
    Isn’t TSB completely independent of Lloyds these days and owned by Sabadell?

    That's right, TSB is not part of Lloyds Banking Group any more, they do however share an IT patform at the moment, but they are a totally separate bank.
  • Don80
    Don80 Posts: 300 Forumite
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    Anthorn wrote: »
    As previously stated in this thread avoid banks in Lloyds Banking Group. While TSB is independent of LBG they use software inherited from LBG and we can only wonder how far that extends into data sharing.

    Try opening a basic bank account but as previously stated if there is a fraud marker on your credit history you are unlikely to get one. In that case try Virgin Money Essentials Current Account or go the way of pre-paid.

    Wouldn't LBG be prohibited from sharing data with TSB? I would imagine that they would be breaking the law if they did.
  • Don80
    Don80 Posts: 300 Forumite
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    Hi, I agree with Eskbanker's post. I see some people have suggested banks, I would strongly suggest that you do not apply for any current account just yet. You need to know what's happening first.

    First thing is an obvious one, have you done anything that might be considered fraud, or have you allowed anyone else access to your account? If so, there isn't much you can do. If not then you need to get as much information as you can.

    If there is a CIFAS marker on your file, you will almost certainly be rejected for any financial service - and your credit file will show all these searches. There is no point applying as they'll follow the same process as Lloyds Bank have done.

    You need to find out as much as you can, and possibly take steps to remove the marker (see Eskbanker's post) before you apply for another account. If it's an error, Lloyds may be able to open a new account for you.

    Regarding paying bills, if you must try opening a new account, maybe try and open a savings account with a card, with a different bank. I suspect a CIFAS marker may still affect this though. The Clydesdale Bank have a savings account that comes with a mastercard debit card - if you are successful this would be useful for shopping and calling up and paying your bills over the phone until this is sorted.
    http://www.cbonline.co.uk/personal/savings/everyday-instant-access-accounts/instant-savings-account/
  • paragon909
    paragon909 Posts: 1,498 Forumite
    Banks must have some sort of internal system for fraud and credit scoring that is shared between banks and only they see this...

    For years I couldn't get a bank account because of some share dealing site owned by HBOS i believe, Got me into some trouble, And from there no bank would give me an account for years! I even contacted CIFAS with £10 and there was nothing on their records....
  • JuicyJesus
    JuicyJesus Posts: 3,830 Forumite
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    paragon909 wrote: »
    Banks must have some sort of internal system for fraud and credit scoring that is shared between banks and only they see this...

    There's not. The only one besides CIFAS is National Hunter, but Hunter isn't a fraud prevention agency and you'll never be declined straight off the bat because of something Hunter says (it is more to allow banks to compare notes on applications to ensure that information given is consistent between them and indicate if there's a potential for fraud.)

    If CIFAS say they have no data then it must be something else - bit confused how a share dealing site got you into trouble though.
    urs sinserly,
    ~~joosy jeezus~~
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