BR Friendly Bank Accounts ~ [Updated Sep 2012 re: Co-op Cashminder withdrawal]

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  • alastairq
    alastairq Posts: 5,030 Forumite
    There are no restrictions on the number of bank accounts a BR or ex-BR individual can have...for personal use.

    For business purposes however, that may be another story?

    It is unlikely your OH will be able to open a full personal bank account [as in availability of cheque books and over-draught facilities]......but should easily have access to BASIC bank accounts....of which Barclays are a good bet.

    The BR will be there for all to see on your OH's credit records for 6 years.

    This will , for the moment, have an effect on her ability to open anything other than a basic account....but things do improve with time, especially if she can clean up her credit records.


    The 12 months issue refers to the restrictions under the bankruptcy.

    After 12 months, your OH will have received Automatic Discharge.

    This means, freedom from the restrictions placed on an undischarged BR.

    [for example, now she will not have to inform a lender of her BR status if applying for over £500 of credit! However, the credit check will throw up the BR, probably putting the kybosh on that idea?}


    Regarding accounts? I personally have found no difference between a basic account and a 'full' account, apart from the absence of a cheque book, or overdraught facility........all basic accounts should have a DD facility.
    No, I don't think all other drivers are idiots......but some are determined to change my mind.......
  • You can apply for a Co-operative Bank Cashminder even if they or Smile are one of your creditors. They would much rather you stay with them.

    You can apply in branch, at a Britannia or via the telephone. If you are required to provide proofs of ID and address you can send certified copies (post master at any post office can certify copies of your original docs) or take them to the branch. If you want to make sure the correct team get the docs you can ask the branch to fax the copies to them.

    There is a 3 strikes and your out rule. This applies if you have three separate unpaid items eg. Direct debits or standing orders or if you have card misuse eg. Use your card and then use the funds in your account to pay a direct debit whilst the card payment is pending to debit.

    This can be bent depending on who you speak to at the money management dept.
  • samasama
    samasama Posts: 38 Forumite
    Something that's not been mentioned is internet banking for the two accounts.
    • The Co-op one has internet access and you can do banking online as you would with most other accounts.
    • Barclays won't allow you to have access to the internet banking until after you're discharged. The only reason they give is "bank policy".
    I like to double-check everything and not having online access to the Barclays account drives me up the wall (I live miles from the nearest cash point or branch so can't check it that way).
  • IF
    IF Posts: 34,349
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    Please see amended post 1 :(

    If...x
    "If wishes were horses, then beggars would ride"
  • fermi
    fermi Posts: 40,546
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    http://www.co-operativebank.co.uk/servlet/Satellite/1347603516521,CFSweb/Page/CFSCtplStandard
    Industry failure on financial inclusion forces the Co-operative Bank to review its basic bank account
    • Bank calls for a level playing field with all providers, including new entrants, genuinely performing on issue of financial inclusion
    • No longer offering Cashminder current account to un-discharged bankrupts*
    In response to a lack of positive industry action on the issue of basic banking**, The Co‑operative Bank today announces a change to its basic bank account – Cashminder, for new customers.

    With immediate effect (from September 17, 2012) the bank is no longer accepting new customers who are un-discharged bankrupts, this decision does not affect the bank's existing customers.

    Explaining this change in more detail, John Hughes, Managing Director of Retail Banking at The Co-operative Bank comments:

    "Across the industry there has long been an un-level playing field in the provision of basic bank accounts, with our bank doing far more than most*** and we have been calling for some time for this to be addressed.

    Unfortunately it has now come to the stage where our disproportionate market share of the basic bank account market has continued to grow significantly, and regretfully, we now need to take steps to address this."

    For a number of years now The Co‑operative Bank has been only one of two providers in the market who offer bank accounts to un-discharged bankrupts. Whilst the bank will no longer be opening new accounts for un-discharged bankrupts, it remains fully committed to working with existing customers who find themselves in financial difficulty.

    Commenting further, John Hughes adds:

    "The Co‑operative recognises the importance of access to a bank account to enable people to participate actively in modern life, this is an issue that we have raised persistently in an attempt to encourage all providers to act equally. As a responsibly led business, over the years we have worked tirelessly to promote access to banking, for example by providing bank accounts to some of the most financially excluded groups such as prisoners, as we do believe that banks should play their part in offering people a fresh start.

    However it is now time that all providers acted equally on this issue. Whilst we have had to make immediate changes to address our disproportionate market share, we remain committed to financial inclusion and are willing to lead the way in calling for current account providers, consumer groups and policy makers to work together to introduce a sustainable approach for basic banking that provides consumers with access to appropriate accounts and services.

    Looking ahead we will closely monitor the industry to strike a balance between our commitment to tackling financial exclusion whilst also ensuring we operate in a sustainable manner that maintains our competitive position as a genuine alternative in the market. If the market changes and measures are introduced to ensure that all account providers, including new entrants, genuinely perform on this issue, we will review our decision."

    Notes to Editors

    * Our definition of an un-discharged bankrupt is someone against whom a bankruptcy order has been made and who has not been discharged from bankruptcy. In most circumstances the customer is discharged after 12 months.
    ** Basic Banking refers to the provision of Basic Current Accounts, which are aimed at those on limited budgets who need to keep tight control of their finances and who don't require and overdraft or chequebook.
    *** For a comparison of basic bank accounts, please visit:
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  • this is very helpful thanks for this
  • AndyBSG
    AndyBSG Posts: 986 Forumite
    Really bad news about the Co-op withdrawing bank accounts for BR.

    I can completely understand why they've done this from a business point of view, basic accounts make them almost no money at all and their only real worth is if those BR's then repay Co-op's services by continuing to bank with them once the BR is discharged.

    This is something the government really needs to look into because if Barclays withdraw their basic account for BR's then it will make it almost impossible for BR's to manage any sort of finances during their BR period
  • hi,
    its enevitable that in the next 12 months i will have to go bankrupt. i have two business accounts with the coop, a personal account and a joint account all with the same bank.
    i aim to come out of the joint account so that my wifes income is not frozen and just operate the others until i go bankrupt.
    i note that bank accounts get frozen as soon as you go bankrupt, my problem is that as im self employed my customers pay via streamline or paypal into my business bank account.
    i understand that i can start trading as a sole trader one day after bankruptcy, but how can i still offer credit card machine and paypal servies to customers to make payments to me if my accounts are frozen.

    any clarification is greatly appreciated.
  • IF
    IF Posts: 34,349
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    hi,
    its enevitable that in the next 12 months i will have to go bankrupt. i have two business accounts with the coop, a personal account and a joint account all with the same bank.
    i aim to come out of the joint account so that my wifes income is not frozen and just operate the others until i go bankrupt.
    i note that bank accounts get frozen as soon as you go bankrupt, my problem is that as im self employed my customers pay via streamline or paypal into my business bank account.
    i understand that i can start trading as a sole trader one day after bankruptcy, but how can i still offer credit card machine and paypal servies to customers to make payments to me if my accounts are frozen.

    any clarification is greatly appreciated.

    Hi bionic woman 69, please do start a thread on the main BR board for more information and support.

    Best wishes
    IF...x
    "If wishes were horses, then beggars would ride"
  • fermi
    fermi Posts: 40,546
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