nationwide abuse of credit referencing

[SkintBag]

Hya this is my first post so forgive me if ive posted it in the wrong place. I need help as Last Tuesday i went to Nationwide to apply for the Basic Flex account. Now all sounds very straight forward as there is not a credit application right. Well NO, they told me that i was not entitled to this account as i have had a previous account before, they said the basic flex account is only for people who have never had a bank account not for people with bad credit. So assuming they must be right i was like OK. They then told me they have to run a credit check. I informed them that i didnt want any credit facilities as i have bad credit, so i didnt want a rejection for credit on my file. They told me i cannot get a bank account without being credit scored. So i went along with it, not realising they were trying to give me credit. The system refused (as it would as i have Bad credit) so they said it goes to head office for a decision and i should find out within five days whether or not they can give me an account. After leaving i was very confused and didnt really understand what they were saying. Then today i recieved a letter telling me that i have been refused for a bank accouint with information about why i would be refused credit. The thing is the lady told me i would get a cash card account only before i left the branch ( which i already knew). So why was i refused for credit when i didnt apply for it. Are they allowed to make an application of credit without my permission? also who is the basic flex account for because i thought it was for people with bad credit? Also with the basic flex account is there supposed to be a credit scoring? Does anyone know what i should do about this?

Please tell me if i am wrong about them doing something wrong.

[emma81]

The Basic Flex account is not as such designed for people with bad credt it is only designed for people that dont want any facilities with there account such as over draft and cheque book etc the account still lets you have DD and SO set up on the account it is basically a pay in take out account, you cant buy things on card etc, i used to have this account with Nationwide and i wanted to upgrade it as i'd had it since i was 16 and couldn't do anything with it, they said i would have to close this account and open a new one which i thought was fine but in did an application which they did a credit check on and i got declined even though i have a clear credit file, i think the way banks now open accounts they have to for some strange reason do credit checks on you which is rubbish because if you have a basic account like Nationwides where you cant go overdrawn, cant pay by card and cant write cheques why do a credit check, it is totally pathetic and i share your frustration its a bank account not a bl**dy credit card/loan, you used to be able to get a bank account anywhere but now days you cant.

 

You do have the right to appeal against the decision and they could change there mind, my partner and i have just appealed to Halifax as they 2 turned us to down despite being a customer for 6 years to upgrade our account.

 

Needless to say i am no longer with Nationwide and stung them for £2000 worth of bank charges which i won!

[SkintBag]

Thank you very much for the information you provided i found it very useful. What i dont understand is why i wasnt allowed to apply for the Basic account when i specifically stated that i wanted no credit facilities what so ever i just wanted an account where my money can go in and i can only take it out. I have also just checked their terms and conditions and they state that you are not allowed this account if you are a holder of another account elswhere, i didnt think this was correct? sure i have been told you are not required to declare any accounts with other banks. Any more info on this?

Also are they allowed to try and see if im eligible for credit with them even though i told them i didnt want it. Also does that mean they made me apply for this account by deception?

Anyone who has any more info on this it would be gratefully recieved as im not use to dealing with banks.

[emma81]

I see your point and im under the same impression as you i thought that you could have as many basic or any bank accounts as you liked didnt know if you already had a basic account that you couldn't have another one anyway how the hell would they know if you had one elsewhere as you said you dont have to declare it, i would say that you have been made to apply for this under deception, i used to work for a bank so i know that the workers get comission when people apply for accounts but not on basic accounts only one with credit facilities! Last year i wanted to open a savings account with HSBC bearing in mind this is an account that i would only be paying money in each month didnt have any access to it what so ever and they credit checked me for this a savings account i went mental as they didnt get my permission to do this.....i would suggest you definately appeal this with all the points you mention and as they never told you that you would be credit checked or that you feel you have been decived get them to remove the search from your credit file, i would do this all in writing so you have a copy, i have had searched removed from my file by contacting Experian and querying it!

 

Anyone else that can give anymore info would be great!

[SkintBag]

once again thanks for your help.

If anyone else has anything to add please do not hesitate.

[Planner]

Just to point out where you say "I didn’t want a rejection for credit on my file", if you mean your credit file held with the credit agency's, no record is made of the success or failure of any particular search. All that is recorded is that a search by nationwide (or whoever) was carried out, not the outcome.

[SkintBag]

Planner thanks for your info, however if a search has been put on your credit file and no account is added afterwards then wouldnt anyone be able to see that i had failed the credit check? and besides all information warns you that too many searches adversally affects your file. were they allowed to apply for credit without my consent???

[Planner]

Not at all. If your renting a place, a credit reference agency might do a search and yet no account would appear afterwards.

 

You might go for a mortgage, they would credit check you, you could be approved for it and then the sale falls through and you dont buy the house so no account appears.

 

A search appearing is no indication what so ever of the likley result of that search.

 

Best of luck getting that account!

[royboy68]

Not quite right Planner. I know from experience that when a credit search is done on your file it impacts on your overall score successful or not. This is kept on file for 12 months from the date of search then falls off. I had a similar thing with RBS where i actually told them not to do a search and was assured that a basic account doesn't have a search. When he punched it into the computer it made the search anyway.

I can see the point of doing searches on credit applications but why don't they do an unrecorded search for none credit applications that way it doesn't impact your score yet still gives them the info they need, they claim its only to check your identity and length of time at your current address so it shouldn't be a problem

[Guest Expressit]

There are two types of searches recorded, the one for basic accounts, identity checks etc. is normally not seen by anyone else who does a search in the future.

[SkintBag]

thanks royboy68 i thought so. Would i be within my right to ask them to remove it off my file as i thought it was illegal for companies to run credit applications without my consent. as i was told it was still gonna be a cash card only account. Yet from the letter they sent me it was a rejection for an account with credit facilities.

[make them aktiv runners]

I was told some time ago that Banks/Building Societies do run credit checks on new customers, sorry cannot remember exactly why though. I think it is something to do with money laundering legislation, ie they need to make sure you are not going to be using them to money launder.

 

Equifax searches remain for 6 months, Experian 12 months, debt searches with Experian remain for 6 years for some strange reason.

[SkintBag]

does this mean that what they did even forcing me to apply for a credit account under false pretences, that they did all by the book

[royboy68]

Hi Skintbag

I put an official complaint into the RBS stating that as far as i was concerned they had broken the law by accessing my credit file without my consent and even worse with my explicit forbidance. After a lengthy investigation they agreed to remove it. Saying that, i never checked back to see if they actually did.

[IdaInFife]

I thought they done credit check just to confirm that there is no frauds or bankcruptcy on file . That's what I was told when I applied for an account with the co-op. Said i Just want basic account( to hide money from OH as he spends too much! lol) and they sent me an account with an electron card whic I am not fussed about as my current bank accounts alreay have the electron. When I go into the BOS for naything they always try and an want me to upgrade my account and I am sick of the telling no as i like to be able to spend the money that's in the bank and not get it on credit.

Skint - try applying for the co-op basic account. My local branch is 50 miles away but can use all facilites for it at my local post office so doesn't make any difference.

 

 

Idax

[SkintBag]

Thanks alot ida5921and royboy68 youve been very helpful

[JimmyTheOne]

When you submit an application there are 2 reasons banks & lenders check your credit files.

 

The first is to make sure you are who you say you are. (To deter ID theft)

 

The second is to help them assess you, to see if you're capable of operating your account in a sensible manner. (To deter fraud and assess risk).

 

Every set of Terms & Conditions I've ever read, states that they may or will carryout a check on your credit file and or share data with other agencies.

 

The system I use to deter ID Theft and protect myself ( see Identity Theft protection, ID fraud prevention tips, Impersonation fraud assistance) now forces ALL lenders to check applicants credit files.

[SkintBag]

I understand all of that, obviously for fraud but i didnt think they were allowed to apply for an account with credit unless i say thats what i want. Thwe letter they sent me states that the credit account i applied for i was declined but the point is i didnt apply for a account with credit. also they misinformed me that i was not allowed there basic account, which is on the CAB website that i am allowed to apply fo r that one:confused: