Banks Cherry Picking Customers

where am I?

Hmmm... Yes, I was kind of confused for a minute there but I've asked around and I'm definitely living in Ireland. So I'll keep talking about Irish banks if that's ok with you rainyday, but feel free to reply with more "Basic Research" or irrelevant reports about banks in other countries for me not to read.

I think the word "Unprofitable" is used not to represent a loss but to represent meagre or negligible profit. I was using it in the loss making sense of the word so apologies if I got my wires crossed on that one. But I stick by my point that current account holders who are paying fees (as most are in his country), are not losing banks money. If they were you can be sure that the banks would be moaning about it non stop. But they are not, and they are still touting current accounts to new customers. Which once again begs the question, why are foreign nationals having a hard time opening accounts?

Re: where am I?

The First Active article does refer to Ireland. I've certainly heard Felix O'Regan of IBIS spouting about the huge costs of the bank clearing system and how they lose piles of money on the typical current account (and make it back again on mortgages etc).

There has been no evidence produced on this thread of discrimination - just a policy that applies equally to all new customers.

Speedy Gonzalez

If these lads have such a problem with Ireland, why don't they shag off back to Spain ?

Sure aren't Los Spanyos well know for their efficiency ? Not !!!!!!!!

Banks

Go into bank. Ask to start PIP/PEP/Pension/PRSA. Say you will pay weekly over counter. Need current account. What are we to do? Hmmmm. Should be more nice to opening current account. Fill out savings/pensions forms. Get account details. Cancel policies within 21 day.

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The banks aren't necessarily discriminating against foreign nationals - they'll happily discriminate against anyone they don't think they'll make money from (unemployed, low-income earners,etc) and wave the money laundering legislation as their justification for doing so.

This wouldn't matter a blast however if it wasn't for the fact that banking services are a necessary evil. Comparing banks with florists is therfore completely inappropriate.

In addition, the profits made by the banks sputs them in a position where they could (and should) display greater social responsibility. Their refusal to look beyond the strict P&L, however, makes this unlikely.

Thanks for the Advice

I sent my friend into another branch of the same bank who refused to open the account & he told them that he was working & would be getting paid into his account every month. He brought his passport with him & Tax Cert which has his address, so he met all the DP rules. They still refused. They said he would have to be working in the country for 6 months before they'd open the account. As far as I can see they are changing the rules as they go along.

I am going into the same bank over the next few days & if they agree to open an account for me, I'm going to get onto the Equality Authority. In the meantime he's going to try some of the other banks people suggested so thanks for that.

Someone should do something about this. He still has a landlord breathing down his neck to set up a s/o for his rent................this country is a shambles.

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Have you contacted IFSRA? Thay may be interested.

If they could, the banks would love to tell at least 20-30% of the customers to get lost (some would say up to 50%). These are customers who, over their life with the bank, will lose the banks money. These customers (in general!!) love cash, cheques and visiting their branches, hate telephone & internet banking, and don't take out many "value-add" products, such as mortgages, investments or car-loans.

Politically, this is a complete non-runner. They could expect the bank levy to be cranked up even further.

The next best thing is to size you up before you open an account, and, if they don't like the look of you, refuse to do business. Who wants to do business with someone who'll probably lose you money?

Opening bank accounts

My company employs several different nationalities and during the summer our parent company send us over non-national summer students. When they arrive we give them a letter to take to the bank stating that they work for us and that's all it took. It probably helped that our company a/c was with an AIB branch and we sent the EE's into our local AIB here in the sticks.

Re: Opening bank accounts

Of course if these people were Irish *pretending* to be foreigners they'd have no problem opening an account.

Evidently liars make better customers than foreigners.

-Rd

Re: Opening bank accounts

Evidently liars make better customers than foreigners.

Click to expand...

Only when placing deposits, liars are not much good to lend to.

Just to clarify on the money laundering aspect. The regulations are very prescriptive and leave no room for a judgement call. Bank staff not sticking to them face the same penalties as those actively engaged in money laundering, and this results in very inflexible approach.
The requirements are to identify the person (passport etc.) and their address (recent utility bill) and a face-to-face meeting, with a more expoerienced or senior mamber of staff (a number of weeks wait for such a meeting mentioned earlier is common throughout Dublin and other areas).

Most people can identify themselves, but the problem (especially for people in the process of moving to Ireland) is providing a recent utility bill in their own name for their current place of residence - for obvious reasons. This is where the letter from an employer comes in - it needs to be signed by an authorised signatory, be written by a company that holds its business accounts with the same branch, is well known and in good standing and must state the name, address, passport number and PPS number. It is then within the branch manager's discretion to accept this in place of a utility bill.

An employer's backing can be very useful in obtaining an account, especially where there is a corporate banking relationship, so if you know anyone having difficulties encourage them to talk to their HR representative.

I have never heard of this policy of having wages paid directly into accounts (although I have heard of 18 months free banking if you do) and agree it is an attempt to fob off a would-be account holder.

Any bank can tell you in 20 words or less, which customers they do not want as it will cost them money, but I do not think any of them has a policy to actively discourage new accounts. They would far prefer that An Post provide a basic banking service for certain "market segments" - the early stages of which were blocked by the Competition Authority as long ago as 2002.

If anyone has the money laundering requirements met and is refused an account for any reason they should ask to talk to the manager. If this provides no satisfaction they should contact the head office directly and talk to Complaints or Customer Care or whatever it happens to be called that week.

Opening bank accounts

Statler,

I had a problem with AIB 4 months ago, and sent a letter to their complaints department. I am still waiting for a reply - although am now in the process of moving to a new bank. It seems that the head office will just back up their people on the ground.

Re: Opening bank accounts

Hi Sue,

The department you need to talk to in AIB is "Customer Care". They are based in Bankcentre in Ballsbridge and I would advise calling them rather than writing. I do not have a direct line but if you ring the switch at (01) 6600311 and ask for Customer Care they should be able to help. Get a name and a number and keep contacting them is the only way to get a result.
If you are not successful the in the end, taking your business elsewhere, as you have done, is the only response to bad service.