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Budget 2010: Bank accounts for all

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  • usedandabused
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    Teddy198 wrote: »
    I am going to go bankrupt very soon and I have been trying for months to get a bank account where money can be paid in electronically, direct debits paid out but has no cheque book, overdraft or debit card - isn't that a 'basic account'. The friendly staff smile and say 'oh yes we can do that, here are the forms' but when I read them they are always for a standard bank account and specifically 'not' for people who are bankrupt. I'm still looking.


    Co-op Cashbuilder account, Barlays Cash Account, bankrupt friendly, visa debits for both:D
    She LEFT me, she LIED, and she made me foot the BILL ! :mad:
  • Rafter
    Rafter Posts: 3,850 Forumite
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    Banks are in a bit of a muddle over this one.

    Bank accounts cost money to run. Fees for direct debits cover some of these but banks make most of their money our of lending and fees for overdrafts etc.

    A basic bank account doesn't have these features so banks aren't going to be falling over themselves for providing them.

    Add to that that a bankrupt person can't legally borrow before discharge and has not been able to repay previous debts and they look even less attractive.

    Which kind of says the banking model is still broken. Either banks need to start making small charges for certain services or they need to charge retailers more for debit card payments so the basic costs are covered. After all BT/ Virgin are able to offer big discounts for DD payments so why shouldn't some of this go to the banks so they can offer 'free' services or better rates of interest?

    Similarly why shouldn't tesco pay a bit more for the convenience of not having to pay for additional security, people to count cash, securicor deliveries etc?

    Perhaps some politicians are right and that retail banking should be more like a utility with proper regulation and separate from investment banking and corporate lending. Then perhaps consumers will get a better deal and the system won't be quite as risky and unstable.

    R.
    Smile :), it makes people wonder what you have been up to.
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