Do banks have a legal requirement to offer a basic account?

[Badgers]

This does not seem to be the case for me

 

I have some CCJs which I am working to resolve but have been turned away without good reason. I have hunted around but can't find anything specific I can quote when placing complaints in writing.

 

Any help greatly appreciated.

 

Cheers

[gt94sss2]

No, there is no legal requirement on banks to offer a basic bank account.

 

You may find the FSA booklet on basic bank accounts useful.

 

Regards

Sunil

[Badgers]

Thanks gt94sss2,

 

That PDF is helpful. I was actually told by the Alliance & Leicester that there was a legal requirement. Guess that shows that the banks have no idea either!!!

 

So far......

 

* Denied by Co-Op

* Waiting for response from A&L but they needed no credit checks and said that the account would be opened (will believe it when I see it)

 

* Accepted in 20 minutes by Natwest (much better account than A&L)

Sadly I am pursuing Natwest for charges on my business account so hopefully will open this and the A&L accounts in order to have two parachute accounts!

 

Confusing and irritating!!!

[livelylad]

This does not seem to be the case for me

 

I have some CCJs which I am working to resolve but have been turned away without good reason. I have hunted around but can't find anything specific I can quote when placing complaints in writing.

 

Any help greatly appreciated.

 

Cheers

 

Try this.

 

 

http://www.consumeractiongroup.co.uk/forum/general/13832-do-you-need-parachute.html?highlight=parachute+account

[Hammersmith]

It varies from bank to bank but as a rule, if you are receiving benefits, a UK national and not in work you can insist on a basic bank account. If you are in work and fail their credit score due to judgements and/or a poor credit rating its very unlikely you will get an account.However, if they refuse it will be difficult to get them to change their minds and you have no way of making them.

[michelle73]

No, there is no legal requirement on banks to offer a basic bank account.

 

You may find the FSA booklet on basic bank accounts useful.

 

Regards

Sunil

 

Don't like to argue but.....according to section 3.1 of the banking code, a financial institution HAS to offer you basic banking facilities or it breaching your human rights. This snippet of useful information from my debt counsellor at CCCS.

[ian1969uk]

Don't like to argue but.....according to section 3.1 of the banking code, a financial institution HAS to offer you basic banking facilities or it breaching your human rights. This snippet of useful information from my debt counsellor at CCCS.

 

Not so. Section 3.1 states:

 

3.1 Before you become a customer, we will:

• give you clear information explaining the key

features of the services and products you tell us you

are interested in;

• assess whether your needs are suited to a basic

bank account (if we offer one) and if they are we

will offer you this product;

• offer you a basic bank account if you specifically

ask, and meet the qualifying conditions for one;

• give you information on a single product or service, if

you have already made up your mind; and

• tell you what information we need from you to prove

your identity (by law, we have to check your identity

 

 

So they still apply criteria and they can still refuse.

[GaryH]

So they still apply criteria and they can still refuse.

Yep, tis true.

 

I read a piece on this in the big issue the other week, regarding the difficulty - actually, impossibility - socially excluded members of society, especially the homeless, have in opening basic accounts. The banks demand so many different forms of ID that it just makes it impossible to open one - and if its not ID its something else. Baring in mind that this also a time in which the post office account is being slowly phased out!

 

Obviously the banks jump up and down and point to concerns about money laundering, security, Data Protection, blah, blah, blah, which might perhaps hold weight if only the very same banks did'nt have such an appalling record of losing, misplacing and otherwise carelessly sending data into completely the wrong hands on a very regular basis.

 

Of course, it would'nt be anything whatsoever to do with the fact that basic accounts don't earn them sod all, would it? - perish the thought!

[Erica_The_Penguin]

I can recommend Nationwide. Being a Building Society not a bank seem to be a bit more tolerant of those who have a poor cedit history. I opened my account with them 6 years ago when I was having problems and haven't looked back since. You can Bank online really easily. Only downside is that you don't get a solo/electron card.