Can I open a new bank account after Default Notice?

baffled_2011

Hi

I have received a letter from my bank saying they are going to terminate my current account shortly because I am overdrawn beyond my limit.

I am due to receive a redundancy payment shortly and want to open a new current or savings account to pay it into so that I can start to sort out my debts. Is it going to be possible to get a new bank account as I have received some default notices under section 87(1) of the Consumer Credit Acr 1974 - will they mean that other banks won't let me bank with them?

Also should I ask my ex-employer to send me my redundancy money in the form of a cheque until I get a new account sorted? Do you think they would allow this as my salary was normally automatically paid directly into the account that my bank is now going to close.

Any advice on this would be appreciated. I am very concerned that if my redundancy payment is sent to the bank I will not see any of it as they will keep it to cover the money I owe them - but I have other priority debts that I want to sort out first before offering to pay them by instalments over time.

Hope you can help on this - it is causing me a lot of sleepless nights.

Degenerate

You may be able to get a "basic" bank account. I'd try a Co-Op cashminder account for starters.

jonesMUFCforever

I agree with previous poster you should be able to get a basic account as long as there is no sign of fraudelent activity.

PNPSUKNET

It depends if they have given a default to the cras, if not be quick and should be fine oppening a account

[Deleted User]

or a halifax easycash/cardcash

teffers

Open a current account elswhere quick, if that fails then get a basic bank account (Natwest is my favourite).

Inverness

http://www.moneysavingexpert.com/banking/basic-bank-accounts#best

Get straight to your employer and advise them that you are switching banks - as you say all your money will go to pay off your overdraft otherwise. Make sure no other payments go in here either.

You WILL be able to get a basic bank account, see above link.

Use AdviceGuide or National Debtline for advice on making a financial statement and where to go from there.