Can't open bank account

[Tomuch]

Hi someone I know had a letter to say their bank account will be closing in 60 days . But they won't tell her why. She was using this time to open a new account. But all banks are refusing her. Even for a basic account. Also although the bank was giving her 60 days it closed sooner than that. At the moment she gets universal credit and she won't be able to get a payment due to not having an account. What reasons could there be that she can't even open a basic account? I'm really worried for her as she now has no access to money.

Set up an Experian account so she can check her credit score, things have to be really bad creditwise to not even be able to open a basic account so she needs to find out the reason, and appeal if there is an error

It sounds like there might be some sort of alert out on her name for money laundering or similar. I've seen articles about this in the weekend consumer press before, I'd google it and see what comes up.

Also has she tried something like Monzo or Starling?

www.citizensadvice.org.uk/debt-and-money/banking/getting-a-bank-account/

"If you're bankrupt or have a record of fraud, you will not usually be allowed to open a bank account. Also, you may be refused permission to open a current account if you have a poor credit rating. However, if you're bankrupt or have a poor credit rating, you may be able to open a basic bank account."

@looptheloopinahulahoop

It sounds like there might be some sort of alert out on her name for money laundering or similar. I've seen articles about this in the weekend consumer press before, I'd google it and see what comes up.

Also has she tried something like Monzo or Starling?

She tried mono and got rejected. Has not tried starling. I will mention it. Could money laundering go on without her knowing? I will Google it now.

she might share a name with someone who is up for money laundering etc.

Does she have a passport from another country? there have been cases of people with family links (e.g. to Iran / Palestine) being locked out of bank accounts under vague 'maybe link to terrorism' rules. the guardian wrote about it a few years ago.

She really needs to know what her credit rating is before trying to open more accounts. You can open free accounts with ClearScore and Experian.

@parietal

she might share a name with someone who is up for money laundering etc.

Does she have a passport from another country? there have been cases of people with family links (e.g. to Iran / Palestine) being locked out of bank accounts under vague 'maybe link to terrorism' rules. the guardian wrote about it a few years ago.

No she does not even have a passport.

Does she not receive regular payments perhaps, or the balance is not kept within the parameters? Will existing bank offer her any alternative?

@AssassinatedBeauty

She really needs to know what her credit rating is before trying to open more accounts. You can open free accounts with ClearScore and Experian.

I don't think they can close your bank account for bad credit rating. Especially if its been open a while ? My credit rating I very bad and I have never had a problem. She's on way to me so I will tell her to check incase

Could it be a fraud marker? I’ve read that that can make it hard to open bank accounts

How about trying the Nationwide they are a Building Society rather than a Bank.

She might have to go to a credit union and open an account with them.I believe they specialise in accounts where people have poor credit scores/bankruptcy but I think there's usually monthly fees for these types of accounts and there probably not cheap either.

@LIZS

Does she not receive regular payments perhaps, or the balance is not kept within the parameters? Will existing bank offer her any alternative?

No they won't. She even being rejected for basic accounts. She tried 4 different banks by going in branch and tried applying on line as well.

No, not for closing the existing one, but the reason why she is getting refused for new ones. Presumably the existing bank account has some condition(s) that she hasn't met, eg minimum amount paid in per month or something. She may have ignored warnings and not spoken to them about it to see if the existing bank had a more basic account she could swap to.

DD works in a bank and says the most issues with opening new accounts, including basic, is ID, followed by fraud

It's very likely to be a fraud marker, from what you've said. Has she sent or received money from anyone unusual?

It's a difficult situation, as the bank legally has to report the activity, but can't provide information that would 'tip off' the customer.

Typically the advice is to open an account aimed at people who are bankrupt, that has less stringent checks and no access to credit; or to use a Post Office/Credit Union account, but I'm not sure if they still exist.

She modt likely has a Cifas marker recorded against her name for fraud, you can check here www.checkmyfile.com/credit-report/identity-fraud.htm?gclid=Cj0KCQjw8vqGBhC_ARIsADMSd1DcbDACm-3cxpDvscPu9doEOhyznb7A4RN-f0UkwqwWsicRO9RZbJkaAksEEALw_wcB

Best to check that first before applying to any more banks.

It shouldn't be this easy to trash someone's life with a false accusation.

@HilaryBriss

She modt likely has a Cifas marker recorded against her name for fraud, you can check here www.checkmyfile.com/credit-report/identity-fraud.htm?gclid=Cj0KCQjw8vqGBhC_ARIsADMSd1DcbDACm-3cxpDvscPu9doEOhyznb7A4RN-f0UkwqwWsicRO9RZbJkaAksEEALw_wcB

Best to check that first before applying to any more banks.

I just had a quick look but it's asking for bank cars details. Her card has been blocked so she can't put her cared details on the form

Could it have anything to do with keep moving on the last 6/7 months she's moved a few times. She's now at her 4th address but she did not change her address with the bank. As some of the time she did not have proof of address. And knew she was not staying long .

It looks like you can find out direct from Cifas, here:

www.cifas.org.uk/dsar

If she doesn't have enough ID to be able to provide the required identity documents it suggests that people contact them for advice.

No she does not even have a passport.

This is probably her issue, as well as the credit rating. Banks are really strict on ID these days. Sometimes the job centre can help with paying for ID.

There is a way for people to get benefits without an account. www.gov.uk/payment-exception-service

[quote WrongKindOfFace]No she does not even have a passport.

This is probably her issue, as well as the credit rating. Banks are really strict on ID these days. Sometimes the job centre can help with paying for ID.

There is a way for people to get benefits without an account. www.gov.uk/payment-exception-service[/quote]
I don't think that is it. As she already had a bank account. I don't have a passport or drivers license and have a bank account never had any problems.

Is she in default to the bank, so does she have an overdraft or something that she's not paying? That would prompt them to close her account, if she hasn't been responding or paying in time and make her credit bad enough that other banks would not necessarily allow her to open an account with them.

@HalfShrunkMoreToGo

Is she in default to the bank, so does she have an overdraft or something that she's not paying? That would prompt them to close her account, if she hasn't been responding or paying in time and make her credit bad enough that other banks would not necessarily allow her to open an account with them.

No definitely no over draft and if there was it would get taken out as soon as her UC went in. But no definitely not