A bank code is an affordability check that will inform the TPN member on their prospective tenant's ability to afford a certain amount of rental repayments per month. This information is sent to the tenant's bank who will investigate the activity on the bank account and make a finding as to whether the tenant can afford the rent or not.
Examples of bank codes that could be returned are given below:
|
Code
|
Description
|
Meaning
|
| A |
Undoubted for the amount of your enquiry |
A firm indication of undoubted financial standing |
| B |
Good for the amount on the enquiry |
The company or person has a good record of meeting their financial commitments, and the amount is well within the capacity of an ordinary business commitment |
| C |
Good for the amount quoted, if strictly in the way of business |
The company or person has a good record, but the amount may appear high in relation to normal transactions on the account. The code is also given where the financial position or recent balance is not held, but judging from the conduct of the account, the account holder is unlikely to commit themselves beyond their means |
| D |
Fair trade risk for the amount of your enquiry |
The financial position of the company or person is modest or unknown, but where the account is satisfactorily conducted and the firm or person is considered good for moderate business commitments |
| E |
Figures considered too high |
The amount of the enquiry is too high for the company or person's capacity |
| F |
Financial position unknown |
This code is given when there is insufficient information to assess the position of the company or person. This code is also given when the conduct of the account is such that an opinion cannot be expressed. |
| G |
Paper occasionally dishonoured |
This code is given when, on isolated occasions, cheques and other instruments (e.g. debit orders) were returned unpaid for lack of funds. For this purpose, each unpaid instrument has a life-span of one year |
| H |
Paper frequently dishonoured |
This code is given when, at regular intervals, cheques and other instruments (e.g. debit orders) were returned unpaid for lack of funds. For this purpose, each unpaid instrument has a life-span of one year |
Please note that the account holder's name must be entered exactly as it appears on the statement/cheque, otherwise the bank code will return as name does not match account name