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Can't open bank account

45 replies

Tomuch · 02/07/2021 16:48

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.

OP posts:
SnaccidentsHappen · 02/07/2021 17:57

She is too risky for the bank, most banks. It will be most likely something bad in her credit file so she needs to look at that right away and maybe go to CAB for advice if she doesn't understand these things. Either that or it's fraud or money laundering.

As pp said also check CIFAS, just because her account is blocked doesn't mean she can't enter the details for it

debwong · 02/07/2021 18:08

Did she see any unusual transactions before her account was closed? e.g. did strangers deposit any money there? There are certain scams that go on, where people deposit money in your account, and then say it was a mistake and ask you to transfer it back. It's money laundering. Maybe your friend has been a victim of this.

SnaccidentsHappen · 02/07/2021 18:11

Or has she been abusive to bank staff, did she maybe get upset one day in branch or on the phone and say some things she shouldn't have

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2021DNA · 02/07/2021 18:21

She should phone the bank to find out the reason why they are closing the account. It might be a mistake on their part. If she is unhappy with their decision to close the account, ask her to raise a complaint. She can then go to the ombudsman and they could force the bank to reopen the account.

2021DNA · 02/07/2021 18:23

Also, if they have closed the account sooner than they said and that has meant she is unable to access funds, it’s the banks responsibility to ensure she can get access to those funds.

WrongKindOfFace · 02/07/2021 18:26

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.

Sorry, I meant ID is an issue for getting a new account. If you don’t have photo ID is can be really difficult to open a new account.

SnaccidentsHappen · 02/07/2021 18:33

If she can't get an account with anyone else either then there is defo something that either she has done or on her credit file. Raising a complaint won't change the decision, I highly doubt it's a mistake if she can't open another account

TheCanyon · 02/07/2021 18:35

Try a post office account.

TakeYourFinalPosition · 02/07/2021 18:47

She should phone the bank to find out the reason why they are closing the account.

They cannot legally tell her if it’s fraud related. It’s against money laundering regulations to “tip off” the bank.

OP, if she has moved a lot and doesn’t have good enough ID, it could be that she’s failing the updated money laundering requirements. The ID she had may have been good enough for when she opened the account, but not to meet the KYC legislation now.

HSBC are doing a link up with Shelter, intended for homeless people, but that allows them to have accounts with less ID/address requirements. It may be worth seeing if she can open one of those. If she’s rejected from that too, it’s likely to be either something major on her record, or fraud. She’d be best to contact CIFAS in that case.

2021DNA · 02/07/2021 18:49

Raising a complaint won't change the decision

Wrong.

2021DNA · 02/07/2021 18:52

They cannot legally tell her if it’s fraud related.

I’m not suggesting OP friend is committing fraud. If she was using the account for fraud (or fraudulent actively was on the account) then they would know why the account was closed 🤷‍♀️

RandomMess · 02/07/2021 19:34

They could have sent letters to an old address that got sent back. That would put a flag on her account which along with other flags could be part of the issue???

helpmewiththisnew · 02/07/2021 21:36

Has she been paying council
Tax at the addresses she's lived at? It really doesn't matter if you keep moving you just need to keep paying council tax at the new addresses and update your bank. Sounds like she hasn't updated her address, might of been something simple like they were closing the account if they didn't hear from her.

lozzadoo · 02/07/2021 21:46

Banks close accounts for all sorts of reasons, but most of them are not a surprise. If an account is inactive, they will normally write and see if the account is still needed. If the account is misused (e.g continually going into unauthorised overdraft or bouncing cheques) there would normally be some warning. In these cases, the bank would give the reason for closure if the holder called to question it.

For an account to close completely out of the blue, it is likely to be because of transactions that the bank suspect are connected to money laundering or terrorist financing, or other high risk activity. In these cases, as PPs have said, the bank will not say why the account has closed as regulations prevent them from doing so.

In those cases, a bank would generally have very good cause to suspect transactions before they closed someones main personal current account (which it sounds like this is). There is likely to have been a number of transactions over a period of time that build a picture they're concerned about.

You mentioned that your friend doesn't have a passport. Is she British? Could she have been sending or receiving money from a country that is sanctioned or otherwise high risk such as Syria or Iran? It might be worth her reviewing her activity to see what might have caused concern, and if she has evidence that it's completely innocent, being upfront with any bank she approaches next (with paperwork to support). But she is unlikely to get anywhere with the current bank if they have gone down the money laundering/terrorist financing route.

I wish her luck with getting an account, it must be very stressful to be without one for her benefit payments

Tomuch · 02/07/2021 22:26

@lozzadoo

Banks close accounts for all sorts of reasons, but most of them are not a surprise. If an account is inactive, they will normally write and see if the account is still needed. If the account is misused (e.g continually going into unauthorised overdraft or bouncing cheques) there would normally be some warning. In these cases, the bank would give the reason for closure if the holder called to question it.

For an account to close completely out of the blue, it is likely to be because of transactions that the bank suspect are connected to money laundering or terrorist financing, or other high risk activity. In these cases, as PPs have said, the bank will not say why the account has closed as regulations prevent them from doing so.

In those cases, a bank would generally have very good cause to suspect transactions before they closed someones main personal current account (which it sounds like this is). There is likely to have been a number of transactions over a period of time that build a picture they're concerned about.

You mentioned that your friend doesn't have a passport. Is she British? Could she have been sending or receiving money from a country that is sanctioned or otherwise high risk such as Syria or Iran? It might be worth her reviewing her activity to see what might have caused concern, and if she has evidence that it's completely innocent, being upfront with any bank she approaches next (with paperwork to support). But she is unlikely to get anywhere with the current bank if they have gone down the money laundering/terrorist financing route.

I wish her luck with getting an account, it must be very stressful to be without one for her benefit payments

She was born in UK. As far as I know all age has in there is her uc . And money I give her. Which is not much. She just done an on line account its given her the surt code and account number she just has to wait for the card. But she gets charged 5.00 a month fir that account. I hope its genuine
OP posts:
BarbaraofSeville · 02/07/2021 22:34

That sounds dodgy and inappropriate for someone on a low income.

Can the UC people help? They must have experience of people with insufficient ID or struggling with access to mainstream banking. What about the post office card account.

Wankerchief · 02/07/2021 22:47

Can she not have it paid in to someone else's account till it's sorted?

Post office no longer does a card account

MrsClatterbuck · 02/07/2021 22:52

The Post office card accounts are being done away with in November.

Rowgtfc72 · 03/07/2021 15:16

I tried to open a joint account with lloyds.
Couldn't do it as I had no photo id. Took every other form of id but it wasn't enough.
Ended up opening it up at my current bank as dh has a driving licence and can prove who he is.

Pikachusbutt · 03/07/2021 15:22

Is she on the electoral register at her current address? This is usually the main reason people are declined banking services.

Most banks nowadays don't offer free bank accounts. They are a business. They either want you to be in lots of debt to them so they make the money on the interesr or pay them to use their services. Most banks now charge for a current account if you don't have a mortgage with them.

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