Refusal of current bank account

coffe

A friend of mine has a moderate amount of debt, one of these debts is because she failed to pay off an overdraft that she acquired as a student, as she then failed to respond to the bank and set up a repayment scheme so the debt was passed on to a debt collection firm. She has now got her act together and is trying to manage her debt, currently she is paid cash in hand as since she failed to pay this debt her bank account was closed down. She is keen to set up a new bank account, which should help her to manage her monthly repayments better, however she has been rejected from a few popular high street banks for a current account (without an overdraft). I wondered whether this was normal practice? Is there any advice you can offer?

Thank you!

fermi

They probably need to apply for a basic bank account, which should be OK even if you have a poor credit history.

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

ihatebiffandchip

My credit history is v bad, but I recently opened a basic account with Lloyds which has no overdraft etc but does have a visa debit card.

I made an appointment to open an account and the bloke did the applicaiton and offered me what he could, which was the basic account.

I have also got an Easycash account with Halifax, which is another basic one. You need to find the name of the one you want and ask for it specifically by name, ime the banks seem reluctant to offer you a basic account, they want you to take the overdrafts and credit cards etc!!

HTH

lee20010

I've got a Halifax easycash account aswell as a Nationwide basic account, I'd advise him to go with Nationwide, least they report to Credit reference agencies...And offer a Visa Debit

MoneyWasting_Expert

My advice is to go Basic if she is having problems getting a current account. Go for an account with say just a cashcard (or possibly Solo, Visa Electron), but allows you to set up direct debits and make payment transfers etc. A account that offers a Visa Debit can be as tricky to get as a Visa credit card. Throughout my adult life even in times of prosperity and good credit, accounts with the Visa Debit card have been hit or miss for me. Santander gave me (poor service ended our relationship) Barclays gave me one and our my current bank, while Halifax wich I was a good costumer throughout my life and had savings throughout childhood have never accepted my application to upgrade my current account, so no longer used.

tommytynan123

I use 'Think Bank' which will have the a/c open by phone in 15 mins. Debit card is standard / no cheques / no overdrafts and once you have told them your monthly outgoings paid by DD/SO they will deduct that from your salary and give you the rest. Phone / On-line.
Yes - you pay £12 a month fee BUT that is all you pay ever. If by chance they cannot pay a DD/SO which is normally due to you not telling them or them messing up a little there is no more charges.
I find them very good indeed.