Banks requiring verification of co. formation from Equifax rather than Comp House?

the white rose · Dec 18, 2008

Hi, I'm having a bit of a problem here. I've opened a business bank account with Yorkshire Bank and they're saying they can't find verification of my company's existence online. They're using Equifax. Companies House have confirmed that my company's details are online through them but Yorkshire Bank are telling me that unless the details are on Equifax it's not good enough for them. What is going on, does anyone know? Is this standard procedure?

Advance notice to forum-addict sneerers and cynics - please post elsewhere, I'm very busy and just want straight answers to the question.

Zeno · Dec 18, 2008

When was the company incorporated? It could be that Equifax has not been updated yet?

Gillie · Dec 18, 2008

Has the bank asked for a copy of your cert of incorporation?

Simon-M · Dec 18, 2008

What is the company name?

Just checked on Companies House Website and I get this:

FLEUR DE LYS PUBLISHING LIMITED
PO BOX 4440
ATHOL ROAD
SHEFFIELD 8
SOUTH YORKSHIRE
S8 2FW
Company No. 06682684

the white rose · Dec 18, 2008

Simon-M said:
What is the company name?

Just checked on Companies House Website and I get this:

FLEUR DE LYS PUBLISHING LIMITED
PO BOX 4440
ATHOL ROAD
SHEFFIELD 8
SOUTH YORKSHIRE
S8 2FW
Company No. 06682684

Yeah that's the one, Simon. To make it clearer - the bank has seen the copy of the cerificate of incorporation and the company was formed end of August.

Gillie · Dec 18, 2008

You would only expect the bank to do a credit check, ie that is what they use Equifax for, if you were moving accounts rather than opening a new one.

Most banks merely want to see cert of incorporation and evidence of which directors hold what shareholding via articles of association or a letter from your Accountant.

I can point you in the direction of a very good Business Banking Manager, but aint Yorkshire Bank, who will open an account for you if you are having problems ...

the white rose · Dec 18, 2008

Gillie said:
Most banks merely want to see cert of incorporation and evidence of which directors hold what shareholding via articles of association or a letter from your Accountant.

They have a letter from my book keeper and are saying it is no good, it has to come from a firm of accountants. But I'm not in the position of needing an accountant yet...

Gillie said:
I can point you in the direction of a very good Business Banking Manager, but aint Yorkshire Bank, who will open an account for you if you are having problems ...

Thanks. I'll bear that in mind. I'm going to see which way this goes when the bank get back to me.

MikeH · Dec 18, 2008

This is a common practice by some banks, and often just out of date practices by the bank managers. The credit agencies update the info weekly in many cases. Tell your bank to go to CH directly or tell them to go to hell

There are lots of banks that know how to check who the company's directors are and that will give you free banking.

gploosley · Dec 18, 2008

We're having the same issue with another bank. Equifax is out of synch with Companies House and showing out of date information. I purchased the Companies House report and mailed it to the bank, they're looking into it.

Simon-M · Dec 18, 2008

All you have to do is tell the bank to go online and look for themselves. It's free and as long as they have internet they can do as many searches as they like.

http://wck2.companieshouse.gov.uk/

Simon

MikeH · Dec 19, 2008

Simon-M said:
All you have to do is tell the bank to go online and look for themselves. It's free and as long as they have internet they can do as many searches as they like.

http://wck2.companieshouse.gov.uk/

Simon

They will need a subscription service to access full details or they can pay as they go for data.

OldWelshGuy · Dec 19, 2008

It isn't that fault of the manager, it is procedural. They have to tick the bock that says satisfactory credit report reviewed, and as Equifax have no information, they are unable to do that.

Unfortunately it is a phone call with a straight answer "is there any way around this situation?" If they say no, then THAT is your answer, go elsewhere, and make it clear to them the situation.

MikeH · Dec 19, 2008

Unfortunatley we hear about this too often. One branch opens an account in a couple of days whilst others do not. One branch will rely solely on a credit agency whilst another branch will check CH. Some branch managers/business managers do not even know where to find shareholder details for brand new companies.

billie1 · Dec 19, 2008

Why don't you try Alliance and Leicester or Abbey National. I doubt they would require so much unnecessary information.

Gillie · Dec 19, 2008

All banks seem to go through this procedure.

If you don't have an Accountant yet how about forking out a little money and getting some articles of memorandum drawn up that state who holds what shareholding.

For instance when I set up a new account a few months ago for the new ltd company, I opened the account over the phone (as I already had one other business account with this bank) and they merely requested a copy of the articles and cert of incorporation and a signature on a form and it took literally three days to get bank account number and cheque books and so forth. I was informed that if I didnt have articles that I could get my Accountant to write a set letter stating the shareholding structure, and we literally organised such for a new client earlier this week as well.

ready2mix · Mar 22, 2011

i use Barclays clearly business to check credit stauts of customers, i also have both my companies on there, one is dormant the other is active owes no debt no overdraft and yet it went down 20 points and my dormant company went up 25 and not even trading, make sense of that, i cant - nothing hidden no late payments nothing.

Best thing to do is try another bank...!

johndon68 · Mar 22, 2011

ready2mix said:
Best thing to do is try another bank...!

I guess they may already have done so as the last post in this thread prior to your's is over 2 years old

John

Paul Kelly ICHYB · Mar 23, 2011

They need you more than you need them.

Find another bank!

Jaydee · Mar 23, 2011

I had thought Zeno was back ... until I noticed the age of the thread

ready2mix · Mar 29, 2011

The thread it lives...!!!!!

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Banks requiring verification of co. formation from Equifax rather than Comp House?

Simon-M

gploosley

Simon-M

ready2mix

ready2mix