Banks Cherry Picking Customers

A

ainec

Guest
A friend of mine who is Spanish & living in Ireland for the last 6 months is having trouble opening a bank account. He is working and has been told that he can only be paid in cash & his employer won't pay into a bank account, He still needs a bank account to pay his rent by standing order & get money sent from home.

2 banks have told him they don't open accounts for people unless they get salary paid in & another told him that he has to wait 6 months - a stalling tactic I think.

What, does anyone know, is the legal position on this? Also, I have also heard that alot of foreign workers & students have trouble opening bank accounts, even if they are getting salaries paid in. Are banks allowed to do this???

Thanks everyone. Hope someone can help.
 
Hi Aine - Has he tried his credit union and/or EBS? Even as an interim measure (i.e. once he has this account up & running, then the banks may take a more favourable view).

I'm not sure of the legality, but in general, I don't see anything wrong with cherry picking by banks. They are private businesses, and are entitled to focus their businesses whereever they like.
 
Send the buggers back!

So Rainyday, you don;t see anything wrong with a bank who offers a personal banking product refusing to open an account for someone just because they don't get paid into it? Private business or not, they should do better than this. Especially given the revenue that they spend on advertising their "friendly" attitude towards customers.

I know someone who recently moved to this country to work for a very well known internet company. Neither she nor anyone else who came over could open a bank account. In the end the management of the company had to arrange a private session with the bank to open all the accounts at once. Every one of those employees that I have spoken to now view Irish banks as though they hate foreigners. Not the impression we should be giving.

We won't attract foreign talent to this country if we make it so difficult for people to manage their money here. The various banks may want to note this.
 
Re: Send the buggers back!

Banks are private businesses. They exist to make money for their shareholders. They are entitled to set whatever rules/policies they like about how they operate (within usual legal/regulatory guidelines).

If a florist shop has a policy of only delivering to Dublin 2 addresses, they are quite entitled to do so. Likewise, if a bank has a policy of only offering accounts to those who get paid into their account, they are quite entitled to do so.

I can sympathise with those visitors who are having such difficulties, but I don't see that it is the responsibility of a private company to provide such services. If this were the case, the extra costs of this service would simply be spread among all other customers of the bank, so we would all end up paying for the unprofitable few.
 
.

I'd like to open my accounts in banks of other european countries.

What would be the problem of these people operating their (spanish, for example) bank accounts from Ireland?
 
Those unprofitable troublemakers, wanting bank accounts...

Its not like the banks are going to be inundated with foreign nationals trying to open 50 accounts each. The people in my example were getting paid into the bank, hence the management intervention. Its not that big a deal for a bank to open and a/c for some one and as for expenses, its a/c holders with small balances who pay yearly fees with most banks anyway, while people with large balances usually avoid fees. So who's paying for who?

And a florist won't check the contents of your wallet or tell you to come back in 6 months if you go to their place of business and offer your custom.
 
Re: Those unprofitable troublemakers, wanting bank accounts.

Hi Adolphus - Unless you run a bank, you are really not in a position to say what is a big deal for the banks to do. If it wasn't a big deal, they wouldn't have gone to the bother of implementing this policy.

It is up to them how they run their business.
 
Bank Accounts

My sister had the same difficulties, the real problem is, and this doesn't seem to have been explained to your friend, is that Money laundering legislation requires the banks to be very thorough in opening accounts, especially in confirming the identity of the person. For example, cashing cheques is an old trick to clean money.

When my sister atteempted to open an account they wouldn't even accept a letter from her (state) employer confirming who she was, where she lived and who she worked for.

Maybe it is cherry picking, but I thought anyone young was welcome with open arms to see what could be riflled from them in the future?
 
Re: Bank Accounts

What would be the problem of these people operating their (spanish, for example) bank accounts from Ireland?
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Opening such an account in the first place in the absence of an address in the relevant juristiction would probably be the main stumbling block. The lack of an integrated cross border pan European (or euroland) cheque clearing system would probably be another problem. The language barrier in certain countries would presumably be a problem for efficient/effective customer support.
 
Re: Those unprofitable troublemakers, wanting bank accounts.

Rainyday,

Likewise, if a bank has a policy of only offering accounts to those who get paid into their account, they are quite entitled to do so.
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Banks don't have this policy. I've opened bank accounts and I've never had my salary paid into any of them. Of Course I'm Irish, so I tend to have it a lot easier in this country than most Foreign Nationals.

This is about Foreign Nationals being refused a bank account BECAUSE THEY ARE FOREIGNERS, and it's not the first time I've heard it. In fact it appears to be VERY common.

It's Ironic considering how easy it's been for Irish people to pretend to be a Foreigner. In Banking terms.

Banks are private businesses. They exist to make money for their shareholders. They are entitled to set whatever rules/policies they like about how they operate (within usual legal/regulatory guidelines).
Click to expand...

It is up to them how they run their business.
Click to expand...

I'd have thought I foreign national working legally in this country would be entitled under law to the same financial services as anyone else. Banks should not be entitled to refuse service to a Foreign National, I don't care how unprofitable they are.

Incidently Banks are not the only source of frustration to Foreigners legally living in this country. The way we handle Holiday Visa's for relatives etc is a scandal. It can take months only to be refused for no reason, while other countries seem to be able to process an application in a few hours or days at the most.

AineC,

If your friend is still having trouble tell him/her to open an account with PTSB, AIB or BofI, I opened one with TSB a few months ago and my salary is not paid in so they DO DO IT. If they give him/her any gip tell them that they're dealing with an EU citizen and unless they want to find themselves on the front page of the Irish Times on the wrong side of an equality tribunal decision then they better sort it out.

Ask to speak to the manager if necessary but don't leave without exhausting every avenue.

It might help if before your friend went in you got an Irish citizen to open an account without Salary being paid in, then have that person return if your friend is getting nowhere.

Don't be afraid to make a stink.

-Rd
 
Re: Those unprofitable troublemakers, wanting bank accounts.

This was posted by MissRibena: Just moving it to this thread.
-Rd



While I agree with Rainyday that as a business, banks call the shots on how they operate, it does sound a bit strange that the people are foreigners. I don't know a whole lot on this but it would be interesting to see if an Irish person would be refused an a/c on the same basis or if mention of anti-descrimination law would make any difference. Does this mean an unemployed person can't have an a/c? Or a stay at home parent? Surely in a day when even Government depts. are paying (and receiving) electronically and we all rely on bank a/c's so much for basic day-to-day transactions, then access to banking facilities should be safeguarded and treated more as a right than a priviledge. Am I right in thinking that the government intervenes if someone is refused by 3 or more insurance companies for car insurance?

Rebecca
 
Re: Those unprofitable troublemakers, wanting bank accounts.

If this is a case of discrimination by nationality, then a simple complaint to the Equality Commission will get this sorted. Just because you have opened such accounts in the past does not necessarily point to this policy being discrimination by nationality - It may be a new policy, or the policy may depend on the customer being able to show evidence of other account within the Irish system.
 
Re: Those unprofitable troublemakers, wanting bank accounts.

Rainyday - anecdotal evidence indicates that the banks do not make it easy for non-nationals to open accounts here. There were threads about this some months back where people were asked to come back months later because the branch-account-opening-person only worked a 2 day week and they were on holidays and anyway their 2 days were currently full coping with a backlog and all sorts of other excuses which sound like they really mean "we don't want your business".

I agree that banks are private businesses and are allow to pick and choose their customers.

However, publicans are also private businesses and are allowed pick and choose their customers. If a publican decides he will not allow people of a particular background in because similar people have previously caused fights, he will get in trouble for discriminating based on prejudice.

Why should it be different just becuse the banks have been hit once or twice by non-nationals ?

I remember hearing (again anecdotal) about an issue in the US where Irish students were being loaded when looking for insurance because a few of their predecessors had shown a tendency to have crashes. The outcome was that the loading had to be removed because it wasn't legitimate to assume that all Irish people were a high risk just because some of them were.

z
 
Re: Those unprofitable troublemakers, wanting bank accounts.

Hi Zag - I guess the deciding factor would be to find out if these barriers were applied to Irish people wishing to open accounts as well as non-nationals. If it applies to Irish people too, then this is just their business policy. If not, it is discrimination and should be followed up with the Equality Authority.
 
Re: .

Anyone ever try to open a bank account in another European country? It's no different. In my case I needed a translated passport with a stamp from the Irish embassy vouching for its veracity, proof of address from landlord, bill sent to new address, salary paid in directly and a letter from a citizen of the country in question. And an appointment. And a return visit.
 
Mattress 365

Rainyday, I don’t need you to tell me what I know or don’t know. I am aware how banks operate. If it makes you feel better I had a piggy bank once. As R Dalton has said, this is about non-nationals being given a hard time by the bank. All the evidence is anecdotal in this thread but I’m certain that the case I described really happened.

Anyone living in Ireland needs access to a bank a/c to handle his or her every day finances. Its either that or keep your money under the mattress. Account holders pay fees to the bank for the privilege of leaving their money with them so its not unprofitable for banks to hold accounts for anyone.
 
Foreigners and Banks..

I am a non-Irish, and I had no problem at all to open an Bank Account with the Branch where my company had their accounts (probably the best way to get started). I just brought a letter from my Employer, which stated that I am emploeyed there, and that the PPS Number was applied for. They wanted to see statements of the last three months of my home country, and a passport.

This was 3 years ago, though, and I have to say I am impressed with the service my Bank (AIB) offers me. I never had a problem, neither did I step inside the bank for more then two years. Not even for mortgage or Car Loan.

But I hear from new Colle. that it can be difficult, if you decide to use another Bank then your employers bank. Employers normally have good connections or deals to ease this matter.
 
Re: Foreigners and Banks..

Account holders pay fees to the bank for the privilege of leaving their money with them so its not unprofitable for banks to hold accounts for anyone.
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Hi Adolphus - Thanks for clearly demonstrating your lack of knowledge about how banks work. Current accounts are generally not profitable for banks. If you don't believe me, check out the following links;

[broken link removed]

BBC Panorama - Banks squeeze out unprofitable customers
the idea of forcing banks to provide current accounts for unprofitable customers is 'weak'.
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Sunday Times article on First Active
He then took the hard decisions, closing one in three of its branches, making 200 staff redundant, slashing commissions to investment brokers and ditching the unprofitable retail banking services, including credit cards and current accounts.
Click to expand...
BBC Business report on current accounts.
Many current accounts cost the banks money to run
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Would you like me to keep going, or would you like to do a bit of basic research before your next post?
 
Re: Foreigners and Banks..

Rainyday,

All but one of those links apply to UK Banks which afaik almost all have free banking, and where competition is much stronger. Is it fair to draw conclusions about Irish Banks based on this?

-Rd
 
Current accounts

My experience abroad
I got turned down for a Current Account in the UK by a number of high street banks when I moved over first.
Finally, I ended up settling for a cashsave account after weeks of hassle.
It was another year before I got a current account and cheque book.
Given the number of scams and extent of money-laundering out there I don't have a problem with the stringent rules. If anything it is too easy to open an account in some European countries.
 
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