DRO & Bank Accounts

saving2cleardebts

Hiya,

I am currently considering a DRO and have a few questions im hoping someone will be able to answer.

1) Ive been told my current bank Barclays will take my debtit/online banking away from.

2) I have now been told i could get a cash card with nationwide with online banking (this is important to me because i have a disability that restictions my mobility)

3) How do you deal with a cash card? I have my reservations again because of my disability.

4) How long after the DRO end is it possible to get a debit account again? Its not an overdraft i am wanting its more the convience of a debit card.

Thank you for any advise,

x

debt_doctor

Hi,

Unless you have debt with your bank then your bank will not be notified of your DRO. You have no duty to inform them.
With the legislation and practice of DRO's being so new it is not possible to say which are the 'DRO friendly' banks but the assumption is same as BR ie Barclays and COOP.

There is no reason why being under a DRO or BR should deny you online banking or a debit card.

DD

fostertom

You mean, if not in o/draft, no need to inform my bank about a DRO, so account can continue, incl. existing o/draft facility, online/phone banking etc? Obviously couldn't make use of that o/draft facility. But won't they soon find out, from credit agency or similar? In bankruptcy you do have to inform your bank.

debt_doctor

Correct, you do not need to inform. They MAY find out some other way.

DD

fostertom

Worth a try then - that's v helpful.

redapples_2

debt_doctor wrote: »

Hi,

Unless you have debt with your bank then your bank will not be notified of your DRO. You have no duty to inform them.
With the legislation and practice of DRO's being so new it is not possible to say which are the 'DRO friendly' banks but the assumption is same as BR ie Barclays and COOP.

There is no reason why being under a DRO or BR should deny you online banking or a debit card.

DD

I think people need to check with individual banks and I think someone IS telling banks abouts DROs.

I have some info which may be of help. I banked with First Direct for over 15 years. I had no debts with them, had never been overdrawn.

I had 2 credit card debts which I took out a debt relief order on, neither where connected with either FD or HSBC (FDs parent group) (my debts where with Lloyds and MBNA)

anyway 2 months after being awarded a DRO I got a phone call from FD telling me that as I was subject to a DRO they where closing my account, immediately. They would not honour any direct debits or standing orders and any money paid into the account would be returned to sender. (i have a private pension paid into the account and my weekly housing benefit) I had to go to my local HSBC and collect the cash that was in my account (about £120)

I tried to reason with them but they said it was their policy to close the account of anyone declared insolvent. The person told me that I should have told them I was subject to a DRO and that the Insolvency Service should have told me to open a new bank account. I informed them that when getting a DRO you dealt with intermediaries not the IS.
I got my DRO through the CAB and I discussed this issue with them at the time and after checking online I decided not to open a new account at the time of my DRO because
a) my debts were not connected to FD
b) who was going to tell them I had a DRO?

So somehow banks are being told or are finding out that people have DROs and whether your debts are connected to them or not is obviously irrelevant. I was told that this was official policy of first direct.

well I hate FD now of course, they didn't want to know how or why I had got into financial trouble (ill health) they were not interested, they just wanted to get rid.

The moral of the story is that I think it is wise for EVERYONE getting a DRO to open an umbrella account (I went to the co-op for a Cashminder account) and to have all their direct debit and standing order info handy so that you can sort things out quickly. I was dropped royally in the **** and had to spend several days running round like an idiot trying to sort things out and making excuses for why FD had refused the DD mandates. Also it effected my new phone contract as they tried to get my first payment and it was refused, they were not too happy and wanted to know why.
If you apply for a DRO and you bank with First Direct OPEN A NEW BANK ACCOUNT!