How to get a bank account - if you're unbanked - basic bank accounts

glider3560

Joodle wrote: »

I work for a company supporting people back to work, and one of the major barriers people face is not having a bank account, as employers won't pay wages in any other way.

Many savings account accept payments from employers. E.g. the Nationwide Cashbuilder account. It has a standard sort code and account number, which your employer can pay into. It also comes with a cash card. Not ideal, but much better than not being able to receive your wages.

boogoose

I went to the RBS (the only bank left in our town now!) and I explained that due to redundancy 12 years ago, my credit rating is still only average. I mistakenly thought that using a debt management company was the honest thing to do - what a mistake!!
I was declined an account and was told there was nothing they could offer me at all.
I also have worked for the local government - in a school for the past 9 years- which apparently counts for nothing.

flibblesan

3 years ago I got into serious debt with HSBC and my account closed. I had to shop around to get a basic bank account to have my benefit paid into and tried Yorkshire Bank, Alliance & Leicester and Abbey who all told me they would not be able to offer me even the most basic of accounts. On each occasion I mentioned that by law they must provide a basic bank account but was told by each person that it doesn't apply to me due to my credit score.

In the end I tried Barclays. I spoke to a great chap who I explained my situation to and he was understanding. Helped me fill out the form for a cash card account there and then and took photocopies of my passport and benefits award letter. In two weeks I had my cash card account opened and a Visa Debit card in the post. When I asked why I was sent a Visa Debit, I was told that this is now the only basic card they provide. Much better than I expected. I also have online banking and a free online savings account, all under this basic cash card account. I even get paper statements.

If you want a basic account then make an appointment at your local branch of Barclays and speak to somebody. They've been fantastic with me and I'm really pleased that I'm not treated like a second class citizen for having a basic bank account.

Lil_Ems

I am in year 4 or a 5 year IVA - which shows on my credit history.

I have applied for Basic Bank Accounts with ALL of the high street banks over the last 5 years and NONE would give me even a basic bank account as I had "adverse" information on my Credit History!!!!!!!!

I assumed that basic bank accounts were aimed at people like me, who were in financial difficulty when in reality no bank wants to touch you with a barge pole.

I have been employed for the last 17 years and currently have a good job with good money, my IVA has never been in default and has run smoothly and yet due to my IVA being recorded on my Credit History, getting even a savings account is impossible!! ( I tried that to get ANY bank account!!)

As my debts are listed as being in "default" on my credit history - that is all banks seem to see - they do not take into account that these accounts are in "default" and that there is an IVA to explain the "Defaults".

I eventually got a basic bank account with Abbey national/santander or whoever they are this week and ended up going to the Financial Ombudsman due to their sneaky practices.

They gave me a basic bank account with the promise I could "upgrade" to a normal account with debit card in 6 months. I duly followed their advice and my application was rejected.

I would regularly be encouraged to apply to upgrade and each time I was rejected and in the end my credit history looked a mess.

The F.O sorted all this out, but at the end of the day I am stuck with a useless bank account as I can't get one anywhere else.

as I said at the beginning - Basic Bank Accounts are a JOKE!!!

:mad:

jimbob10000

I think the previous poster hit the nail on the head - surely the point of a basic bank account service should be to help people that have experienced some difficulties in the past.

For anyone who is struggling to deal with the high street banks, I'd strongly recommend getting in touch with your local credit union. Most now offer some type of facility to receive benefits and salary payments, and a growing number are offering easier access to money through a current account or debit card service.

You can find out your local credit union's details on the ABCUL website - abcul.org

:j

pmduk

I'm not a fan of the Government ID Card scheme (I don't trust any of the parties not to screw it up), but it is one area in which ID cards could help. Unfortunately, though you can apply here in the North West, you only qualify if you have a passport. Duh... if I had a passport I wouldn't be needing an Identity card to prove my identity.

Patr100

pmduk wrote: »

I'm not a fan of the Government ID Card scheme (I don't trust any of the parties not to screw it up), but it is one area in which ID cards could help. Unfortunately, though you can apply here in the North West, you only qualify if you have a passport. Duh... if I had a passport I wouldn't be needing an Identity card to prove my identity.

Yes I but no ident card is cheap either and also , you might need a passport to "prove" your ID so you can get the card.
Mad.

flibblesan

pmduk wrote: »

I'm not a fan of the Government ID Card scheme (I don't trust any of the parties not to screw it up), but it is one area in which ID cards could help. Unfortunately, though you can apply here in the North West, you only qualify if you have a passport. Duh... if I had a passport I wouldn't be needing an Identity card to prove my identity.

Not true. I'm in the East Midlands and I have an application pack. You do not need a passport to apply for an identity card and this is stated in the included booklet.

The ID card is £30. Cheaper than a passport.

flibblesan

Lil_Ems wrote: »

I am in year 4 or a 5 year IVA - which shows on my credit history.

I have applied for Basic Bank Accounts with ALL of the high street banks over the last 5 years and NONE would give me even a basic bank account as I had "adverse" information on my Credit History!!!!!!!!

Unless you specifically asked for a basic bank account then the banks would have applied you for a standard bank account which involves a credit check. Banks do not make any money out of basic accounts so it's in their interest to apply you for a better account. Banks are supposed to offer you a basic account but not all do. By law they must provide you with a basic bank account even if your credit score is bad. The only time I believe you would have a problem is when you are bankrupt.

Lil_Ems wrote: »

The F.O sorted all this out, but at the end of the day I am stuck with a useless bank account as I can't get one anywhere else.

as I said at the beginning - Basic Bank Accounts are a JOKE!!!

:mad:

Could you please explain exactly why a basic bank account is useless and a joke? Many people have basic bank accounts that have no credit facilities and they allow direct debit, wages to be paid in, standing orders, debit cards and some even offer online banking.

glider3560

flibblesan wrote: »

Not true. I'm in the East Midlands and I have an application pack. You do not need a passport to apply for an identity card and this is stated in the included booklet.

The ID card is £30. Cheaper than a passport.

AFAIK British citizens can only apply for an ID card when you apply for a passport. They must live in Manchester or work at Manchester or London City airports. Nationals from outside the EU can apply for an ID card wherever they live, without a passport.