Opening a bank account after being discharged from bankruptcy

charley83

Hi all,

I am posting for my friend who was discharged from bankruptcy just over a month ago.
Basically, he has a Post Office account and has been into a couple of banks (I know one was Barclays) who told him they won't open him an account until he has his Certificate of Discharge. Obviously, just coming out of bankruptcy he isn't exactly flush, so can he avoid this expense - Can any banks open him an account without it?? I have seen on this forum that you can have a Barclays account whilst bankrupt so I'm now quite suprised they won't give him one now he's discharged.

Any recommendations??

Thanks in addvance

So_Sad_Angel

Hi Charley

The Barclays & Coop accounts are their basic offerings & don`t have a credit check which is why they are available to undischarged..well & everyone with a poor credit history actually.

I would expect an application for full account elsewhere to be refused on a recently discharged BR...the Certificate is the proof that the Bank will need to appeal the refusal.

HTHs

Angiexx.

tigerfeet2006

Get him to print out the discharge notice from the IS website and also ask his OR for a letter stating he is discharged, this can be done for free.

As Angel says he should be able to get a Co-op Cashminder or Barclays Cash account as these are offered to BR's.

charley83

So basically he needs to pay for the Certificate?? It's crazy when he has a letter stating the end date and the OR has confirmed he's now discharged.

Thanks for your help

tigerfeet2006

Tell him to ring Co-op and get a Cashminder account. It doesn't matter if he doesn't have a branch nearby, he can make deposits at the Post Office. He will be able to have DD's and SO's, an Electron Debit card, internet and phone banking.

A lot of us have these accounts. It is very unlikely he will get an account with an OD facility or cheque book until the BR drops off his credit file. Make sure he cleans these up, check the sticky to see how.

As I said get him to print out the page from the IS website that says he is discharged as well.

damoandclaire

I got a lloyds tsb cash account with debit card facility after I went bankrupt and was discharged. they were quite helpful actually.

charley83

Oooh I think he'll like hearing that - I think that's all he wants is to be able to set up DDs and SOs

Fab

damoandclaire

yeah - all they wanted to see from me was discharge papers (i just showed them a copy of the court order that I received) and they did it there and then.

You get the equivalent of a visa delta but you can only use LLoyds cash machines - no link. But i thought that was cool anyways as I now had the debit facility.

Each application is different on its own merits obviously but I cant see why they would give one discharged bankrupt an account and not another.

tigerfeet2006

The difference between the Lloyds and the Co-op is that the Co-op electron can be used in any link machine, in shops and over the internet.

damoandclaire

tigerfeet2006 wrote: »

The difference between the Lloyds and the Co-op is that the Co-op electron can be used in any link machine, in shops and over the internet.

but there are a lot of shops that do frown upon the electron card. I used to work for the Woolwich before it was mothballed and there was no end of complaints from customers who said their electron card was refused all the time.

I think the issue there was that the retailers were simply not aware they could take electrons and refused in most cases but still, electron is still frowned upon

With the Visa Delta, that is accepted Worldwide, anywhere the Visa sign is (electron not so much) and yeah, its limited to their own cash machines but, I personally would favor the debit facility to a link machine - but thats me

tigerfeet2006

Well I have had my card for over 3 years now and can count on one hand how many shops have refused my card. I have also used it abroad. Horses for courses I suppose.