Yahoo Finance Bank won't let you open an account if your neighbours can get to your mail
First Direct, the online bank, will refuse to open accounts for applicants who have an "unsecured mailbox", such as those who live in shared properties. because of fears about identity theft.
The bank defined an "unsecured mailbox" as one where a "third party (not a family member or someone who shares the home) can intercept mail that is sent to a home address".
This includes a house converted into flats where mail is delivered to one location where residents collect it from, such as a communal hallway. Individual, locked boxes that receive letters directly are seen by the bank as secure.
The bank, a division of HSBC, told Telegraph Money that the rule was included in its terms and conditions but had been part of its account opening checks for many years.
First Direct, whose telephone and online banking service is highly regarded, said it asked potential customers if they had a secure mailbox during the application process. If the applicant is identified as living in a shared property the bank will clarify how they receive their post and use this information to establish if their mailbox is secure.
A First Direct spokesman said: “The safety of our customers’ money and personal details is always our number one priority.
"At present we don’t proceed with applications where we’re informed the customer does not have a secure mailbox, as there is a risk that someone could intercept their mail, cards and Pin number. This reduces the chances of any fraudulent activity or breach of data protection."
The bank said the question about secure mailboxes was only part of its application process for new customers but it was currently reviewing its policy to provide a solution to customers who share their post facilities.
Do other banks turn down applicants with shared mailboxes?
Telegraph Money asked a number of other lenders whether they would ask applicants about their mailboxes or if they would reject applicants if they discovered that they were in shared areas.
Santander said it did ask new customers if they had a shared mailbox in the application form. If so, it asks them to collect their debit card from their nearest branch. The bank said it would not turn down applicants on this basis.
Barclays said it would allow customers who live in blocks of flats with mailboxes situated in shared spaces to open bank accounts and did not factor this into its decision making on account opening.
HSBC will also give applicants with insecure mailboxes a current account. Customers are not asked about this and it is not highlighted within its terms and conditions.
NatWest/RBS said it expected customers to give a secure address when they applied for an account. A spokesman explained that if staff believed a customer might be living in accommodation that didn't have access to a secure mailbox, they might ask follow-up questions to ensure their post was received safely. In some cases, staff may suggest picking up a bank card in a branch.
According to the bank, this is a key discussion point with customers, especially as more students are opening accounts and may be living in halls or shared accommodation where they are more likely not to receive their post.
A spokesman said: "We wouldn’t turn a customer down for not having access to a secure mailbox but would instead work with them to find a secure way of them picking up their post."
Lloyds/Halifax/Bank of Scotland said it did not have any specific restrictions or requirements relating to mailboxes in shared hallways in its terms and conditions. However, if customers felt more comfortable using a different address from their home for mail, they were able to do so.
TSB said it allowed customers to apply for accounts regardless of the type of mailbox they had and did not ask customers about it during the application process. It said there was nothing associated with the matter in its terms and conditions.
