Lloyds basic account, Brutallity and bankruptcy

Daveybones · 3 April 2015 at 6:14PM

So I was declared bankrupt the other day. I have a lloyds basic cash account and have never had any charges or been overdrawn. The account had zero credit facilities. Lloyds were not a creditor in my bankruptcy so I thought I was in with a chance of keeping it.

I phoned lloyds and explained my situation. They said it was a matter for the branch to deal with because I would need to take documentation in to prove I'm BR. So they made me an appointment and I remained positive.

I attended my appointment and they immediately freezed my account and advised me to seek banking services elsewhere. I asked why, having no previous debt with lloyds and having managed my account with them well. I have nearly £3k of wages paid in per month. She said the reason was "procedure".

It was brutal.

I still don't get why they closed the account. They had nothing to lose.

I'm now trying to get my question answered I've tried emailing their customer services director and asked him for a good reason. And asked him wether they would consider changing their attitude towards bankrupts.

Currently I have no bank account to have my wages paid into.

Can anyone shed any light as to why the banks behave this way? Even when they have nothing to lose?

fermi · 3 April 2015 at 6:30PM

Many or most banks 'perceive' that they run a certain risk running a bank account for an undischarged bankrupt.

There is a link with info on that. I shall try to find it.

fermi · 3 April 2015 at 6:43PM

http://forums.moneysavingexpert.com/showthread.php?t=5139005

https://blogs.citizensadvice.org.uk/blog/banking-on-help-for-undischarged-bankrupts/

fermi · 3 April 2015 at 6:44PM

And: http://forums.moneysavingexpert.com/showthread.php?t=4718639

starM · 3 April 2015 at 6:50PM

Daveybones, I think you have been too honest. If you would have simply used the account without notifying them - the account wouldn't have been closed. Although it is possible if they receive a manual feed from CRA they would have closed it later date.

I don't think any Basic accounts would be available to you. You have 2 choices open up a Savings account or http://www.money.co.uk/current-accounts/bank-accounts-for-bankrupts.htm

You may try to open up a Savings account which offers a debit card - Yorkshire Bank does but not sure if they will offer account with BY. You can also try State Bank of India - They offer Debit Mastercard.

fermi · 3 April 2015 at 6:58PM

Barclays Basic account should be available.

The Official Receiver would/will write to the bank. For an an account they have no interest in their letter would tell the bank that, and that they are happy for the account to remain open if the bank is prepared to do that. So one way or another the bank would almost certainly have been informed.

jonesMUFCforever · 3 April 2015 at 7:02PM

starM wrote: »

Daveybones, I think you have been too honest. If you would have simply used the account without notifying them - the account wouldn't have been closed. Although it is possible if they receive a manual feed from CRA they would have closed it later date.

I don't think any Basic accounts would be available to you. You have 2 choices open up a Savings account or http://www.money.co.uk/current-accounts/bank-accounts-for-bankrupts.htm

You may try to open up a Savings account which offers a debit card - Yorkshire Bank does but not sure if they will offer account with BY. You can also try State Bank of India - They offer Debit Mastercard.

Even if OP had not informed the bank they would have frozen and closed the account once the bankruptcy was disclosed on insolvency list

owlet · 3 April 2015 at 8:26PM

Barclays should open you a basic account. Currently they seem to be the only bank who will after BR.

alastairq · 3 April 2015 at 9:32PM

I concur..........Pop in Barclays ASAP, open a couple of basic accounts...[to assist with budgeting].

Be aware, whilst Undischarged, Barclays do not permit internet access.

It is a pity the OP did not pop onto this forum pre-BR....then we could have advised them as to what steps to take, banking-wise.

dojoman · 4 April 2015 at 9:21AM

starM wrote: »

Daveybones, I think you have been too honest. If you would have simply used the account without notifying them - the account wouldn't have been closed. Although it is possible if they receive a manual feed from CRA they would have closed it later date.

I don't think any Basic accounts would be available to you. You have 2 choices open up a Savings account or http://www.money.co.uk/current-accounts/bank-accounts-for-bankrupts.htm

You may try to open up a Savings account which offers a debit card - Yorkshire Bank does but not sure if they will offer account with BY. You can also try State Bank of India - They offer Debit Mastercard.

Could you please tel us where you got your info about the banks? Also it is Yorkshire BS who offer a savings account.

alastairq · 4 April 2015 at 10:36AM

From the above link...misleading in the least??

http://www.money.co.uk/current-accou...-bankrupts.htm

However, because there is an element of risk which is higher than normal, you might find that there are only bank accounts that have to be paid for available to bankrupts. This may seem frustrating, especially whilst money is a problem, but the amount you could save by having accessing to an account probably outweighs the potential cost.

The above site is a for-profit organisation..a comparison site...therefore will only list those products for which a referral gets commission.

Information from such commercial sites should not be taken at face value as gospel.

Most of the accounts listed have to be paid for, with a fee.

Most of the cards listed are pre-paid.

Barclays being the one exception.

MSE provide a much more accurate review of the banking situation for Undischarged, and Discharged bankrupts...not surprising given the resource which is this forum?

Co-op receives no mention at all [CAshminder].

This may be a deliberate policy on the part of Co-op...either to not make policy public, or not offer commision......but such an omission shows the true underlying motives for commercial sites.

Lloyds basic account, Brutallity and bankruptcy

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