Rejected for current account.

[Toddlerteaplease]

My friend who is 78 has recently been moved to a nursing home. He doesn't have a current account. Which has caused no end of problems. He got Into rent arrears on his flat as he's not allowed to leave the home because of Covid to pay in cash. (Going to give notice in the flat)
He's been a loyal customer of Halifax for 40 years but they had rejected two applications for a current account. They are giving no reason for the rejection. He fits their criteria so I do t understand. Any ideas?

Ooh not too sure about this- could be his age or the fact he is recently in arrears. Could he go for something like the starling bank instead?

I bet it is for some convoluted reason like a lack of credit record if the account has an automatic overdraft - what a pain!

My personal account with a bank that I'd held for years was closed because I didn't have a monthly salary going in to it (SAHM) so that can also be a requirement, a regular minimum payment. I've got a joint account at the same bank and branch and they are fine with that

Can he get a basic bank account somewhere? Hope he can sort something out, so frustrating.

They do reject for no reason try somewhere else but be warned they will have done credit checks on him which will affect his credit rating

I'm
Trying Santander instead. He wasn't in arrears when I tried the first time to sort one out. So it's not that. And he doesn't need an overdraft. It could well be the total lack of a credit record. But they should tell him why it's rejected. Particularly he was given an account number and sort code and told the card was in the post.

Money saving expert website has some advice.
Co-op, Barclays and Virgin offer basic accounts.

He should be able to apply for a 'basic' or 'cash' account ie no overdraft facilities with any of the main banks.

Does he still have his account with Halifax? What happened to that?

I got into a lot of debt in my early 20s (living well above my means, took out credit cards, loan and overdraft) and when I started a debt repayment plan with Step Change they told me to open a current account with a different bank. I had to open a "basic" account with RBS as normal accounts come with an overdraft and my credit history was so shot, I couldn't get anything else.

Would a post office account work for him?

@CormoranStrike

Would a post office account work for him?

I don’t think you can open a new one.

He should be able to open a basic bank account which will give him access to a card but won’t allow an overdraft.

In the meantime is he able to write to the bank asking them to issue a cheque or bankers draft to pay his outstanding rent? Or send an electronic payment? Do they still do that?

Yes. He still has an old fashioned pass book account with Halifax. They have him a cash card because of Covid so he can withdraw cash. I paid his rent arrears on my credit card as there was no other way to do it.

And the council apparently no longer accept cash payment.

Not sure what's going to happen when he has to start paying care home fees.

Has he spoken to the Halifax about converting the passbook account to a basic bank account with a debit card but no overdraft?

Can he not set up a standing order to the council for the rent? He may be able to write to the bank to give this instruction?

No. We've tried the standing order. That can't be done either. I ha e a letter giving permission to access his account and it's still a no go. Considering that they've made a big thing about helping their vulnerable customers during Covid. They've been remarkably unhelpful. He's tried over the phone. But I don't think he'll be allowed to take him to the branch in person for some time.

He has three pensions that are paid in monthly.

Honestly I wouldn't bother with Santander. They aren't known for their customer service or flexibility (I used to bank there). Nationwide have been excellent for me.

I've been happy with Santander.

Is there a local credit union he could try? They can offer current accounts.

When I had credit issues I found Nationwide were very good.

@PinkSparklyPussyCat I tried opening one with nationwide but never heard anything from them. Not sure I did it correctly though. Will try again if nothing from Santander.

Just found emails from nationwide in his spam folder asking for ID. That's going to be the next problem. His utility bills are from his old address. He has no pass port or driving licence. Will pop into branch and see what they suggest.

What a nightmare for him! There are ways and means though, if you have a Google for financial inclusion officer at your local council or citizens advice, they can offer some help.

We had this frequently with street homeless, those exiting prison, those escaping domestic violence and resettling - it is such a common problem, and the tightening criteria have a terrifying impact.

Nationwide were brilliant when I needed to open a basic bank account. No hoops to jump through or anything. I had a cash card account for ages and had no issue with direct debits or standing orders. I only upgraded to a current account because they offered me one.

I really rate them. Easy to get through to them on the phone and nice folks to talk to.

I spoke to a very helpful man in the beach queue, who has given me a phone number to call.