[RESOLVED] Kicked out of Cooperative

HeaddyMX

I've started a new thread because this is MoneySavingExpert, not HolierThanThouExpert. If I posted in the original one I'd probably end up saying things I'd regret.

Anyway, in response to the difficulties with opening an alternative account elsewhere:

- I've (reluctantly) gone back to NatWaste, as fortunately I still had a current account with them.

- I've been inspired by other people to manage my money. I've had NatWaste open two more accounts, with the idea that all of my income gets divided between several accounts for different purposes, and it's made a lot easier through online banking.

- I'm also doing away with direct debits wherever possible - which were most of the problem to begin with - and making payments manually.

- I've also checked my credit report, and as a result I found I had an unresolved credit card with - guess who - NatWaste. Even though I had informed them of closing the account years ago, it had an unresolved balance. A friendly call to CreditExpert revealed that it was this, and not the default (which has been satisfied), that was affecting my credit score the most.
Unfortunately, even though I hadn't known about this for years and received no communication from them, NatWaste's credit card department (separare from the bank, as I was told) is refusing to correct the report at present.

So there is no "pattern" emerging", as something rudely put it, there was no trying to get away from taking responsibility, and it wasn't entirely my doing (maybe 90%). It was just a matter of taking control of finances, and not expecting the banks to look out for my interests - they won't.

I would encourage everybody who has credit score problems to check their credit report. In my case, what I thought was the problem wasn't the problem.

Extant

Although I think it's rather... petty to call it "NatWaste," I'm glad you've come to the realization that it's better to manually pay - i.e. transfers than use Direct Debits.

I myself don't use any Direct Debits, as it really does take a lot of control away from you and tends to stop people from thinking about their budget for the sake of saving a few minutes every month.

agsnu

BarclaysManager wrote: »

I myself don't use any Direct Debits, as it really does take a lot of control away from you and tends to stop people from thinking about their budget for the sake of saving a few minutes every month.

Actually I think most people use DDs because most organisations penalise you for paying by DD. It often makes a difference of 5-10% on energy bills, a few quid each month on mobile phone bills, etc.

Bosie

I too would prefer to pay by cash as Barclay's Bank Manager say's you do lose control. I have a mobile contract and I'd have to pay an extra £3 to pay manually. Think Virgin Media charge an extra fiver a month. Years ago, before all this automated stuff I paid by cash or cheque and never got into debt! I think the use of cards doesn't make it so real, I used to get paid with a little brown wage packet, I would then take out what I needed to pay, bill money, food, bus fares etc, never in debt:TOh happy days.

iceicebaby

Personally I prefer DD as I am not able to get to banks in banking hours so DD is more convenient for me.

Different strokes for different folks I suppose!

ShelfStacker_3

Speaking up for DDs - they're fine so long as you can actually budget, and you know what's coming out each month. I keep track and never have issues - never had a DD bounced or take me overlimit, simply because I know what's coming out of my account when. And I'm sure someone will pipe up going "oh but I can't be bothered/it's too hard"... what's so hard about keeping a list of your DDs and the dates they come out pinned to your fridge or something, or having a seperate account for the DDs?

Put simply, it's not DDs that get you into debt, it's poor budgeting and financial management. Keep money in your account to pay DDs from, or have a covering overdraft facility in place in case you can't and need a couple of day's grace, and you'll never have an issue.

DCFC79

ShelfStacker wrote: »

Speaking up for DDs - they're fine so long as you can actually budget, and you know what's coming out each month. I keep track and never have issues - never had a DD bounced or take me overlimit, simply because I know what's coming out of my account when. And I'm sure someone will pipe up going "oh but I can't be bothered/it's too hard"... what's so hard about keeping a list of your DDs and the dates they come out pinned to your fridge or something, or having a seperate account for the DDs?

Put simply, it's not DDs that get you into debt, it's poor budgeting and financial management. Keep money in your account to pay DDs from, or have a covering overdraft facility in place in case you can't and need a couple of day's grace, and you'll never have an issue.

but if someone cant be bothered to budget accordingly then should they be given a bank account , if your on a tight budget then you cut down on things you dont really need which will cut down on th DD's

simax

I work in customer services for a mobile phone network and the amount of people who call in who are 2 months behind their bills and then complain when we cut them off is amazing..

"Well you never cut me off before"

"Well, the more late payments you make, the less goodwill we give."

"You're breaching our contract as you've cut me off!"

"Well, Sir, actually you've breached your contract by not paying your bills on time..."

The amount of people who have a clear blatent disregard for money management is unreal.

The guy who gets paid on the 31st of the month and want's his DD to be the first. We say the earliest we can get to is the 8th and he says "Well, all my money will be gone by then!". I tell him to keep it aside and he talks back to me like I'm an idiot! :rolleyes:

Hazzanet

ShelfStacker wrote: »

Put simply, it's not DDs that get you into debt, it's poor budgeting and financial management. Keep money in your account to pay DDs from, or have a covering overdraft facility in place in case you can't and need a couple of day's grace, and you'll never have an issue.

Totally agree. I've been using Microsoft Money for years (there are similar free programs available such as GNU Cash) and I always know the balance of my account before the bank does. I spend probably 20 minutes on a Wednesday and Saturday entering receipts etc and I have a separate spreadsheet for my shopping, petrol and miscellaneous cash expenditure so I stay on top of those. MS Money also has a budgeting feature which alerts you if you're overspending in any areas.

I've also always taken the maximum overdraft that a bank will give me. This means that if I do muck up, and I occasionally do, there's a good buffer there if I need it. I don't use the overdraft all that often, but doing this requires self control and a little bit of time and effort.

I'm not holier than anyone else on the boards, just organised. It's not hard to see that if you earn £500 a month, but spend £600, there'll be a problem very quickly, so it's about trying to work within the £500 by using the moneysaving tips here on MSE - i.e. change mobile tariffs or go to PAYG, reduce the Sky Package or get freeview, cancel unnecessary magazine subscriptions, get a smaller car etc. All common sense things that need you to sit down and do a bit of work.

It won't work for everyone, and there'll still be people that think I'm preaching. I'm not; this is how I manage my money and it works for me. In the 20 years I've had a bank account, I've not had a bounced DD, SO or cheque or received any charge from any bank.

ShelfStacker_3

DCFC79 wrote: »

but if someone cant be bothered to budget accordingly then should they be given a bank account , if your on a tight budget then you cut down on things you dont really need which will cut down on th DD's

That's paradoxical. If someone is on a tight budget, they NEED to budget. Having to be bothered doesn't come into it. They need to be made to be bothered, which is what the policy of the Co-Op regarding closing accounts for returns is intended to do. I support it for that reason - it might make people actually think about their financial management, because there's actual consequences, rather than charges.

The culture in the country sadly seems to be going to the idea that the banks are there to micromanage your finances and cover any mistakes you've made, which is totally wrong - the banks are there to hold your money, pay interest and make payments, and you still need to do the legwork of making sure your accounts are run well.