Nationwide FlexAccount and Bankruptcy

fermi · 3 July 2007 at 5:39PM

Has anyone else had any consequences from this:

http://www.nationwide.co.uk/current_account/managing_your_account/basic_bank_account.htm

Basic bank account

Are you looking for a more convenient way to manage your money that'll make your life easier and pay you interest? If so, the Nationwide Basic FlexAccount could be the one for you if the following statements apply to you:
I am not currently bankrupt or subject to an Individual Voluntary Arrangement (IVA)

I am over 19 years of age

I have not held any accounts with Nationwide for more than six months

I do not have any accounts with any other bank or building society

Our Basic FlexAccount offers a range of features and benefits:
pay money in and set up regular payments like standing orders and Direct Debits

a cash card which enables you to withdraw money and check your balance at any of our cash machines, branches and any Post Office branch

manage your money over the Internet

the Basic FlexAccount does not offer an overdraft, a cheque book or a debit or credit card

For more information or to apply for a Basic FlexAccount, please ask your branch for an application pack.

Basically is this a change of policy for Nationwide?

sweeper12 · 3 July 2007 at 5:57PM

Hi Fermi

This is news to me ? I opened my Flex just before BR and also informed them when I went BR - they said it was okay as I was not actually borrowing any money from them. I wonder if it will effect anyone who has this account with them or whether it will just be for new customers ?

wherediditallgo · 3 July 2007 at 8:53PM

I wouldn't be surprised if that clause was added fairly recently. My Nationwide account, clearly indicated on my SOA, was frozen by them when they were advised that I was BR. I think the ORs don't realise that all Nationwide current accounts are now Flex accounts, just with different levels of service (I wasn't either as I've had the account for years & hardly ever use it), with the result that the OR will write to them to advise them of your status, but not say they have no objection to you using the account, especially as the ORs actually tell people it's an account to go for. This clause would explain why the Nationwide may freeze the account until they hear from the OR later on that he has no objection to you using it. That applies even if you owe them no money - I'd never owed them a bean.

I've had to go back to the OR to ask him to send them a letter allowing me to take the money out - until they get it, the account remains on their system as "No Withdrawals" & has the account address as c/o the Official Receiver's London address. :eek:

I think the Nationwide have realised how few banks offer accounts to BRs &, while they're happy to get the business, they don't want to find themselves with problems later on if a lot of BRs subsequently misuse the account. This statement shows they're actively looking for new customers without a poor banking history elsewhere. It will also enable the Nationwide to more easily see how many applications they get from BRs. I hope they're not going to be turning away BRs.

If they're still prepared to offer them accounts, these terms mean BRs will be forced to declare their status (as they should anyway according to the terms of being BR) if they want to have an account with them, rather than trusting to the member of staff to ask the question.

Toomuchdebt · 3 July 2007 at 9:09PM

Oh damn-so that might cause me problems then as mine is with Natiowide?How will I pay my rent??

wherediditallgo · 3 July 2007 at 9:18PM

Toomuchdebt wrote: »

Oh damn-so that might cause me problems then as mine is with Natiowide?How will I pay my rent??

If it's possible to pay your rent another way, eg in cash & get a receipt, or pay it through the post office, then I suggest you do that until you know where you stand with the account. I wouldn't set up any direct debits though if you haven't already done so, as it's too much aggravation to change the details later on. Try not to worry about the account itself too much though - BRs have so few banking options open to them, & we can't live around changes of policy that either don't get explained to us when the account is opened or by letter subsequently.

betterlatethannever · 3 July 2007 at 9:18PM

I was wondering that too, TMD.
I have opened a basic halifax account but should that be closed after BR i was hoping to pop along to nationwide...now where???

wherediditallgo · 3 July 2007 at 9:30PM

Looking at the terms again, it seems they want all of your business & only under very tight conditions. It's the first time I've read of a bank only wanting your custom if you don't have accounts with anyone else.

PixiePie · 3 July 2007 at 11:04PM

wherediditallgo wrote: »

Looking at the terms again, it seems they want all of your business & only under very tight conditions. It's the first time I've read of a bank only wanting your custom if you don't have accounts with anyone else.

When I was at uni (a few years back now) I had a student account with HSBC but was treated appallingly with them in my first year, so went to get another one with a different bank in the summer term and was told by all I approached 'it's illegal to have more than one student account'. I thought this was pretty stupid as at the end of the day, a student account is just a product that they are selling you, so how can it be illegal? I checked things out, found out I was right and went back and told Barclays my findings to which I got a 'oh, really? Oh, ok then, here's the forms to fill in' and got my student account. I thought it was a bit bizarre they were turning business away, but there you go - it pays to know fings, as no offence to bank employees - I'm sure a lot of them know lots about banking, after all it is their job - but there are also those employees that don't know the first thing about their own profession (in a similar way to games shops employees, which I find exceedingly strange....)

chimaera_2 · 4 July 2007 at 9:07AM

I'm a un-discharged BR and have opened a Nationwide Flex account this week with no problems.

There is a question on the online aplication that asks if your a BR or have a IVA, I answered yes and the application continued, at the end the application was confirmed and the account opened.

I believe that the "I am not currently bankrupt or subject to an Individual Voluntary Arrangement (IVA)" is for those looking for an account with credit facility (i.e. overdraft or debit card). It would appear not to apply to the basic accounts.

backontheup · 4 July 2007 at 9:15AM

I am sure that it is just a question to see if you are elligible for the current account or the basic bank account.

They have been a lifesaver for me. I really hope that they are not turning away BR's for new business. We are potentially very good new customers as we simply have to keep the accounts in the black.

chimaera_2 · 4 July 2007 at 10:22AM

backontheup wrote: »

IThey have been a lifesaver for me. I really hope that they are not turning away BR's for new business. We are potentially very good new customers as we simply have to keep the accounts in the black.

Maybe us being good customers and keeping everything in the black is what the problem is, They just can't make any money from us in charges / fee's etc ....... I guess infact that they probably loose money by having us as customers as we get the free banking and they have to pay for Statement printing/posting, cost of producing a card etc.

Nationwide FlexAccount and Bankruptcy

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