Computer Says No

[dog]

Some years ago I opened a small business account. It proved to be a beauracratic process. Within two months of opening the account, the bank withdrew free banking for their business accounts. I simply didn't have the time or energy to then move banks.

I have noticed in recent years that personal bank accounts are going the same way (a process which has been helped by the money laundering regs). One might think that a burdensome application process might work against the bank's interest. It seems to be the opposite. People cannot face moving accounts all the time. Hence; high charges and punitive penalties.

[MarkG]

One might think that a burdensome application process might work against the bank's interest. It seems to be the opposite. People cannot face moving accounts all the time.

Exactly. The banks love restrictions on opening accounts for that very reason... I wouldn't be surprised if they were among those lobbying for oppressive 'money laundering' restrictions. Certainly they don't have any effect on people laundering billions through the City.

When my girlfriend was working over here for a year she found opening a bank account for herself almost impossible; we had to open a joint account instead just so she had somewhere to put her salary.

[RichB]

This is curious because on the MSE forum it is always said that addresses aren't a factor in a credit rating, only names that one actually shares a financial link with.

In figuring out how to match records from bank a, bank b, creditcard c and CCJ d a combination of name (and variants), address, postcode and age are typically used. Its suprisingly complex to do it well. If you find someone else has been there before you with a bad rating etc, and you get matched to them, write to the agencies concerned and tell them to a)update the records, and put a note on the file. Or at least visit their websites and follow their advice...!

[frozen_out]

Some years ago I opened a small business account. It proved to be a beauracratic process. Within two months of opening the account, the bank withdrew free banking for their business accounts. I simply didn't have the time or energy to then move banks.

I have noticed in recent years that personal bank accounts are going the same way (a process which has been helped by the money laundering regs). One might think that a burdensome application process might work against the bank's interest. It seems to be the opposite. People cannot face moving accounts all the time. Hence; high charges and punitive penalties.

Whilst any old tom dick or jane can call up any number of finance companies and purchase a millstone. It would be funny if it wasn't so tragic. When I opened my current account with A+L after all the formalities had been finalised the customer services lad started giving it all the spiel trying to flog me iodentity theft insurance. I declined politely pointing out that if the bank was more rigorous in who it lent money to in the first place identity theft might not be such an issue.