This topic has always baffled me. Nothing against the co-op yet although I have a co-op current account with no overdraft facility and as part of the IVA, owe co-op nothing. With Co-ops recent change to T&C's I'm expecting my account to be downgraded soon or shut but what I can't understand is why? It's none of their concern. I owe them nothing and cannot or do not want to borrow anything. From reading posts, why is it difficult to get a bank account anyway? Of course it is obvious that it would be difficult obtaining one from a bank you owe money but when turned down from others, very strange. I thought everyone in the UK should have access to a bank account, and a free one, after all, we can't really live without one plus it pays the IVA! If we can't get an account, then we can't pay the IVA, then what, they pay for bankruptcy? Personally, I am not really prepared to pay for an account as that's just not right and taking advantage. An IVA is just as good for the lenders as for us as within 5/6 years, we may get a win or inheritance. Anyone who turns me down will get nothing when my IVA is over, savings, insurance, ISA's, pensions savings etc etc. Again from reading posts, this issue is causing a bit of misery so where can this be raised? MP, government, Bank of England? We are not criminals by no means and should be very proud we are trying to reorganise our lives and not put back by this silly issue.
This is it, LeFran. The banks are being, in my view, very shortsighted. We are the financial paragons of the future.
They don't want us at the moment because we cost them money to run our basic accounts. They cannot sell us the fripperies that accompany accounts these days, they cannot rake in interest on overdrafts. Also they do not have the balances to invest overnight.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Thanks Foggy, yes, they have a daft way of thinking though as in the future, I may be of benefit to them in some form. In fact even now, I still need the things like car insurance, house insurance and so on to purchase and so in my way of thinking, any company that pulls the plug or refuse a shoddy basic account will be avoided at all costs when it comes to their products in the future, especially pension annuity or mortgage time. Again, I thought there was some sort of legislation that everyone in the UK should have access to a bank account?
Do you know what annoys me. I work in the finance industry and see foreign nationals open a bank account every day. Based on their benefits being paid in. Grrrrr x
Apologies for repeating but I think this is quite important. I have done some digging on the net and there is plenty on there confirming that Alistair Darlings pre 2010 budget report confirms that everyone in the UK is entitled to a basic/free bank account. Does anyone know what became of this? Can't see anything in the final 2010 budget but may have missed something 'wordy'. If not, I will contact UKGOV direct and see what the position is. Could be that it excludes IVA'ers but we are 'everyone' after all!
It costs banks money to operate a current account, and without the ability to earn interest on deposits invested, or cross sell their other financial products, they simply don't see people in financial difficulties as profit making business.
This view may be harsh, but banks have shareholders to keep happy at the end of the day - and some of them have significant government debts still to repay.
I managed to speak with Natwest prior to hitting the road. I signed up to thier fee paying account that comes with benefits. so although I am paying, im getting some benefits as well. If you are in your IVA and need to switch then it might be worth speaking with some of the banks that have "special Benefits" accounts as this (quite rightly pointed out by Melanie) would be the way they make their money from you.
No, I'm not so sure that the bank accounts where you have to pay to have one are the only option as this is costing you money and not in line with human rights or banking proposals put through a few years ago. I thought 'everyone' in the UK (including criminals) are entitled to a basic free bank account. Yes, the banks need to make money and in this day and age of shareholders and selling hundreds of other second rate products are (sadly) priority, but rights are rights. If people are being turned down for basic accounts from who they owe nothing, then it must be time to query local MP and UKGov.co.uk to understand the official stance on this.
Unfortunately - proposals from the E.U in May 2013 - reconise the need for everyone to have a bank account - however they are only proposals. The same proposals also state that any free basic bank account will need to be subsidised by other account holders as the cost of running the banking accounts out weights the benefits of profit for the bank.
Any legal changes that will force banks to offer account will take years to pass through parliament
One thing that also is frequently overlooked on here - is the use of Credit Unions - as increasing number offer a full current account(Debit Card) - with minimal charges. Deposits are covered under guarantee scheme.
So it may be worth people looking at those as well, as it may offer an alternative to the Co-op
Hi the Co Op does operate a free banking account that lots of people in IVA's use,a cashminder account this is not being affected by the change in the T & C's, there are various threads about it if you put a search in.
If you have an account with them ask if you can change it to a cashminder one.
I have a Natwest basic account opened for the IVA, it's free has DD facility etc, great online banking the only thing I do not have is a cheque book but as the last cheque I wrote was in the 90's I am not bothered about the lack of that.
Last edited by Pandy on Sat Aug 17, 2013 11:14 am, edited 1 time in total.
If life is what you make it, I must have been in a strange mood when I made mine
while the banks my not make any money from you for the 5/6 years the years after you are effectually a target for their sales again, as my experience has proved. Either way I don't really like Natwest bank but I will stick by them because they gave me an account when I needed one.
PS I still dony buy their stuff and I have a free bank account! rather spend £10 on a bottle of wine
Got married two months after i completed! Building my life back up again but still staying on here to support all those who helped me in my times of need!
font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by ginger323232
One thing that also is frequently overlooked on here - is the use of Credit Unions - as increasing number offer a full current account(Debit Card) - with minimal charges. Deposits are covered under guarantee scheme.
So it may be worth people looking at those as well, as it may offer an alternative to the Co-op
Credit unions are popular up here in scotland and I believe ever moreso in northern ireland. Well worth considering.
Paul
Discharged today the 8th feb 2012. View is much brighter now.
Continuing to rebuild our credit worthiness.
There are quite a few big one down south as well - It is something that is not really discussed on here when talking about bank accounts. And where charges are made there are minimal
