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Bank accounts

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Hi All,

Yet another quiery from me!

I have bank accounts with Lloyds TSB with overdrafts etc, when I started my DMP about 18 months ago with Payplan, I stopped using these accounts and opened ones with Co-op bank - just there basic ones with a electron card and no overdraft or cheque book or any credit at all.

My question is do you think that I'm likely to have my co-operative accounts frozen? I'd ideally love to keep them as all my household bills are set up with those accounts. What would be the best way to go about keeping them active?
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Comments

  • Red1708
    Red1708 Posts: 843 Forumite
    as long as you have no debt at all with the bank the OR is unlikely tohave any interest in the account. It is then upto the the bank themselves whether to close the account or not. Alot of us have opened these accounts since BR so can't imagine it being a problem, however it may be wise to pop into the branch and have a chat with somebody. When I went BR I had a Barclays basic account & spoke to them prior & on the day of BR. I was able to keep that account
    BSC Member 59 - AD 29th March 2008


  • wherediditallgo
    wherediditallgo Posts: 2,889 Forumite
    You must tell the OR that you need the accounts & why - don't rely on the OR to ask, especially as when they're asking you other questions you may not even realised they've asked you about your banking access.

    The Co-op one shouldn't be a big problem as long as it's an account like the Cashminder, as that one's recommended for BRs. However, it's not up to the OR to freeze/close the account - the most the OR can do for you is send a 'No Obligation' letter/fax to the bank saying that the OR has no objection to you using the account. If the bank has a policy of closing the accounts of anyone who goes BR, they'll go by that - one of my banks did exactly that to me :(.
  • So best bet is to tell OR why I need/want it and talk to the bank on BR day to try and keep it?! It is a cashminder one that they let bankrupts have so I ahould (fingers crossed!) be ok!
  • Casio28
    Casio28 Posts: 5 Forumite
    Hi DD,

    The Coop Cashminder account will be fine. It's a basic account, with no borrowing etc. so obviously you'll have to let them know that you've declared yourself bankrupt but you'll be able to continue with the account as usual (I did and I know several other women who're the same).

    It's the accounts that aren't basic and that don't accept undischarged bankrupts that are frozen (there are only three accounts that do accept undischarged bankrupts and the Coop Cashminder account is one of them).

    Just make sure you watch your direct debits very carefully because while the Cashminder account is excellent (the electron card is very useful - it's the only account for undischarged bankrupts that offers a debit card) it is also very strict, as you'd imagine.

    You'll probably already know this but if you make 3 bounced dd or debit card payments in the space of three months your account will be closed. This doesn't sound too difficult to avoid if you've got a firm hand on your finances, but if something unexpected happens, like your wages are a day late and your dd's are all going out on your pay day (I tell this story as something that actually happened to a girl who wrote into my website), it can be very easy to do. The Coop are very good if you keep them informed though so if you anticipate any problems give them a ring straightaway and they may be able to help you.
  • I didnt know that about the 3 bounced rule! I'll bare that in mind, I do have internet banking with them and ensure I check it daily so I'm normally well on top of things, so used to being caught of guard in the past I'm obessive about it all now!!

    Thanks for the info!
  • ClaireLR
    ClaireLR Posts: 1,712 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Hi Diva,

    just to let you know I just contacted the Co-Op about this account and they have told me that there will not be a problem in keeping an account you've opened before bankruptcy as long as there is no debt with them.

    That's made my life a little easier, Im going to open an account tomorrow so I can have my salary paid into it and the end of June, (I was going to have it paid into my dads account and pay my bills out of that) this was I can sort out my direct debtis this month, then when B-day comes along I can concentrate on that instead of worrying about what bills I have to pay!

    How are you today? You seem to have made a lot of progress from what Ive read here today!
    Sometimes you have to go through
    the rain to get to the
    rainbow
  • spinningsheep
    spinningsheep Posts: 1,052 Forumite
    Part of the Furniture 500 Posts Name Dropper Combo Breaker
    What are the other 2 banks that offer BR bank accounts? I have a Barclays Bank Account/Additions Plus and have never owed them money at all, have a good relationship with them, would they close my acc? I have no overdraft or cheque book, just a Visa Debit card with no cheque facility

    CC limits £26000


    Long term CC debt £0

    Total low rate loan debt £3000

    Almost debt free feeling, priceless.

    Ex money nightmare, learnt from my mistakes and never going back there again, in control of my finances for the first time in my adult life and it feels amazing. 
  • philnicandamy
    philnicandamy Posts: 15,685 Forumite
    10,000 Posts Combo Breaker
    Barclays & nationwide would be the other 2 banks...

    see here

    http://www.moneyfacts.co.uk/banking/bestbuys/banking_basic_bank_accounts.aspx
    We all die. The goal isn't to live forever, the goal is to create something that will
  • hi there total newbie here other than reading in the past i am in scotland different bankruptcy procedure but i too have opened a coop cashminder account not used it yet ......submitted my forms to the court today should hear in a couple of weeks do you think those of you that are so knowledgeable here that it should be okay as i do need an account to pay my wages and dd's etc and my other account is alliance and leicester although not a creditor i suspect they will close my account any advice greatly received thank you
  • wherediditallgo
    wherediditallgo Posts: 2,889 Forumite
    my other account is alliance and leicester although not a creditor i suspect they will close my account any advice greatly received thank you
    Alliance & Leicester closed my account & I didn't owe them a penny. They told me it was bank policy, so the account was frozen the day they knew I was going BR & closed by them less than 2 weeks later. If they freeze yours, make sure you can get copies of your statements online or ring to get them, as once the account is closed, they're very hard work - I had to kick up a real stink with them to get mine, even though them freezing the account made it impossible for me to even see any transactions online for myself. :(
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