Hello, and thanks for reading this.

I am in a strange situation of trying to open a bank account, even a basic one.

At the moment I use a credit union and it works brilliantly.

Unfortunately,

they are restricted to a maximum of £20K.

In a few months

, I am due an inheritance and I need somewhere to put it.

Both the Co-op and Barclays have refused,

despite saying yes at first, and sending account details.

Today they have rescinded their offer.

Now there are some defaults on my credit file.

Two are current from Anglia Water, which have a note of dispute about them.

The others are old,

roughly 6 years and due to drop off the file next year.

There is no fraud alerts, no CCJ's, everything else is clean.

In the past 4 years I have 3 loans from my credit union and have never missed one payment on them. In fact I have a sizeable nest egg that I have saved up.

None of this was taken into account, only that I have defaults, and that they must be accurate because the creditor says so, and we all know they don't make mistakes.

do I challenge the defaults via the Information Commissioners Office.

Cabot tried to sue me over a 5 year old credit card which I fought them off with help from this site.

They have gone quiet, but I am wondering if it is worth suing them for filing an inaccurate and unproveable credit report.

The Co-op bank may offer me an account if I write and explain things.

I did that with Barclays, but to no avail. They treated me very shabbily with broken appointments, not informing me of refusing the account after they sent the details.

The alternative is a simple savings account to deposit this inheritance into.

I use the credit union for my everyday banking.

The account must accept cheques in $dollars, as it is from an American friend who has died and left me some money.

Any help will be greatly appreciated and I will return the favour for others who may be having trouble with debt collectors and banks.

is it just the defaults as the issue for them?, have they given their reasons. do those banks specify a number of defaults allowed

Have you tried any other banks that do a basic, eg Virgin

The account must accept cheques in $dollars, as it is from an American friend who has died and left me some money.

 

Can't you avoid that complication by asking the US Executors to remit the funds in Sterling? Obviously you'd agree to paying (deducting from the legacy) the charges they incur for that. If a cheque ask for it to drawn on a UK bank, but nowadays can't they send it by direct bank transfer?

No, the banks involved wouldn't say why they refused the account.

What I suspect the reason is I was credit scored and didn't reach the required number to be offered an account. I don't want to keep applying because that damages your credit rating even further. This creates a catch 22 situation.

What does disturb me about how modern banks work, is their total reliance on a computer instead of somebody having the intelligence to consider the full picture. Barclays refused to do this, so they can go etc etc.

The Government forced basic bank accounts onto them because they were discriminating against certain sections of society, They still are. They would not even offer a basic account and see how I ran it for 6 months.

That is a possibility, but I don't know how much I will receive yet.

My main concern is that with the savings I have in the credit union, I will breach the £20K limit.

The alternative is to open another credit union account elsewhere to the current one, or open a savings account. Credit Unions do not accept cheques in any other currency other than sterling. They are getting better, but still do not offer the full access like a mainstream bank does.

My problems started when I lost my job due to ill health.

I live on benefits now and manage to save as I never go anywhere, I can't.

High Street banks don't want customers with savings, they want those who constantly borrow so they can fleece them in charges that would make a loan shark blush.

If a cheque ask for it to drawn on a UK bank, but nowadays can't they send it by direct bank transfer?

it seems Virgin take non uk bank cheques on their basic, hence the suggestion. but, whether or not in non sterling?

as you say though, bank transfer, the execs covering the exchange to sterling?

No, the banks involved wouldn't say why they refused the account. What I suspect the reason is I was credit scored and didn't reach the required number to be offered an account. I don't want to keep applying because that damages your credit rating even further. ....

from info, they should only do a credit check re identity as pure basic accounts don't offer any credit (no overdraft). there shouldnt be a 'credit score' applicable as such for such an account. either they accept defaults, unemployed, bankruptcy, etc outright or not

try virgin. one more prob won't make much difference.

Thank you to all those who took time to reply. I shall try Virgin to see if I can get any joy there.

There are two current defaults on my file, both for the water bill, and both disputed. I am not bankrupt, have no CCJ's, but I am not on the electoral register as I have just moved house. My credit score is 540 according to Experian. It says poor, but I really don't care as I am not asking for credit in any shape or form, just a humble, little bank account with a debit card for the odd shop. Jeez, is that too much to ask for in the 21st century?

Why are high street banks being so picky when we know they are bankrupt without the taxpayers handouts?

just moved and not on the register, that may be it.

maybe if needs be phone up the council and put yourself on the (non public) registeras mentioned,

they say that they might do a credit check re identity and current address only (virgin say that on their site). a credit 'score' for a pure basic account should not be applicable. if a bank says they will accept defaults, then ones credit score is shot anyway.

try virgin (essential current ac), and be open when speaking to them initially. no point again getting the a/c then it later being taken back.

Thank you Ford for your reply.

I was very upfront with Barclays bank and told them everything.

The manager assured me that I would be given a basic bank account, if nothing else.

They send me account log in details, and account and sort code twice and then rescinded it. Not nice.

I have asked them to compensate me for my time, broken appointments and breach of contract.

Their first offer was £25 to go into the account for failing to turn up at a meeting.

I've rejected this and asked for more.

I'm a better credit risk than my file suggests, having had 3 loans from the credit union totalling £5,000 and never missed a payment or paid a minute late. That is not reported though.

I would be given a basic bank account, if nothing else

thats another issue, some banks will try first for a 'normal' account first which prob will be scored (i think barclays, and nationwide for eg do that afaik). it then may get auto rejected after the full credit check.

maybe need to insist on just a basic, no overdraft ie no credit, no 'normal' a/c. as mentioned, a credit 'score'/risk is not applicable re such if a bank says they'll accept defaults, bankruptcy (virgin), as a credit score as a result will be shot anyway.

it seems though it may be re the current address issue having just moved, with maybe no docs/credit file (elect roll) showing your new address. they all require proof of id and associated address. i don't know. otherwise, something else may be amiss.

afaik, it seems coop and virgin pure basic a/c's are well ok with at least defaults, provided any id/address checks come back ok.

maybe you'll have to wait a bit to get on the roll first at your new address.

anyway, good luck with it.

if virgin fails, there are others, most majors do a basic a/c.

Send the money to me, I'm sure i'll be able to find a way to send it to you.

H