Types of Accounts

Abstract

Until fairly recently banks would always seek references before opening an account for an individual and each reference would often involve two letters being sent by the bank; the first being to the referee and asking for his confidential opinion of the new “customer” who has given his name. The letter should include a specimen signature of the prospective customer (Marfani & Co. Ltd. v. Midland Bank Ltd. (1967) and should ask the referee to state the name and address of his bankers. When the reply to this is received, the second letter will be written and this is to the referee’s banker asking for his opinion of his customer as a suitable person to act as referee for the opening of a new account (Guardians of St. John’s, Hampstead v. Barclays Bank Ltd. (1923)). When the whole of this exercise has been carried out, then can the reference be said to be complete. Where the new customer is newly arrived from overseas, the bank should see his passport (Lumsden & Co. v. London Trustee Savings Bank (1971)).