Low credit rating Bank Accounts

soullink

Hiya people, basically I want to discuss low credit rating bank acounts.

My Story..
A few years ago, I bought a house with my now ex-partner. A year and a bit later we split up and she left - leaving me with all the bills. This left me with a lot of debts, which quickly mounted because of me now paying for everything, so I had to go into Debt Management (i.e. didn't have quite enought debt to go for an IVA, but it was enough to make me live off just under £100 a month after fixed bills for a year ... i.e. less than £100 a month for food, petrol, clothing, etc. for just over a year).

I was told by my debt management company to change my bank account to one of the "Low Credit Rating" accounts out there - and they recommended Secure Trust Bank. They Charge £12.50 a month, but if you can't pay a direct debit or other fixed charge, they don't charge any fees - they just cancel the payment.

Naturally, I thought this was ideal considering my circumstances. However recently I'm not so sure.

Recently I've been having problems with PayPal payments (routine ones like Direct Debits) - despite the account having funds, the payment has been refused. Also, the only way to pay money into the account (cash in hand wise) is to pay through a Barclays Bank. This takes 10 working days to "process", which is ironic as they are the main debtor I'm having problems with (they will only accept 100% of what's owed, yet other debtor's have acceped around 75% of the total debt owed as a final payment).

Unfortunately, with STB (Secure Trust Bank), it seems to take longer than the "10 working days" to pay money into my account, as I'm now on "working day" 12, and the funds have only JUST gone into my account. As you can all appreciate - that's a LONG time to wait for funds to get into your account!.

You will also find that if you need the services of some place like Wonga, or other short term lender, that you may have to wait upto a week on your first loan before it's in your account (and that's only if you chase it with your bank!), and after you are registered, and have had your first loan, you will only get it the "Next Day" if you apply first thing in the morning, otherwise, expect a 2 or 3 day delay in getting your cash (I know because I got stranded by the side of the road for 2 days, waiting for the cash to clear so I could drive
car home) - Sad but true!!!

Therefore, my arguement is, that although these "Debt" bank accounts may offer no fee's (i.e. You can't make a payment, therefore they cancel the agreement and you don't get charged - you just have to re-make the repayment details to set up the payment again) You pay in the long run. You have to wait for money to come in, but have to pay every bill on tme to avoid them sending you a "Defaulted payment" letter. Also, with my new pre-paid "Bank Card" - I've found that several places online will not accept the card (T-moble being one of them). So it's not 100% helpful.

Sorry if I've rambled on a bit, but there was a lot of info I needed to pass on (hopefully to prevent other people gettin into my situation!) ... I still have more info, but if I passed it on now, this post would turn into a book ... so ask what you will, and I'll do my best to answer

Mrs_Ryan

are you with Harrington Brooks per chance?! they tried to push me an account with this bunch but i said no thanks will stick with my basic bank accoumt with a proper bank! you can get a basic bank account with most banks that is way better than this one !!!

soullink

No, I'm with Baines & Earnst.

Unfortunately due to my credit rating, I can't get an account with a "normal" bank, but to be honest, I'd rather pay the "late payment fees" of my services (normally max £10) than a "no credit" fee of my bank account of around £35, AND then a late payment fee from the service I'm supposed to pay (if they charge one).

Unfortunately for those of us with bad credit ratings, the "normal" banks don't want to touch us

But thank's for your input Mrs Ryan

pmduk

Have you got as far as looking at the Basic Bank accounts? Barclays and Co-op are often reported to be helpful in these circumstances.

sephrenia

pmduk wrote: »

Have you got as far as looking at the Basic Bank accounts? Barclays and Co-op are often reported to be helpful in these circumstances.

I second this. I have a credit rating that reads like a second rate horror story and I got a basic bank account with Barclays with no problem. I just took in ID on the day I was in town and they set it up there and then.

jen245

Barclays is one of OPs creditors, so probably not a good idea to open an account with them. Co-op cashminder is highly recommended as being one of the best basic accounts, you could try them

pmduk

jen245 wrote: »

Barclays is one of OPs creditors, so probably not a good idea to open an account with them. Co-op cashminder is highly recommended as being one of the best basic accounts, you could try them

Agreed, I missed that in the OP. Any money being paid to Secure Trust is much better being put to repay the debt.

Mrs_Ryan

soullink my credit rating is worse than awful - trust me on this one. I have defaults coming out my ears and I have basic accounts with Barclays, Halifax and the Co-Op. These arent bog standard credit scored accounts, these are basic accounts with no credit facilities etc. You dont get credit checked for them - just an ID check. I second the Co-Op suggestion...

Deep_In_Debt

jen245 wrote: »

Barclays is one of OPs creditors, so probably not a good idea to open an account with them. Co-op cashminder is highly recommended as being one of the best basic accounts, you could try them

Barclays will probably be ok even if you owe them money. They are BR friendly. My ex OH went BR and Barclays were one of his biggest creditors and yet he still managed to open an account with them.

Deep_In_Debt

Natwest Step account is another one to consider; I have one and it has online banking and I've been very happy with it.

Halifax also do a basic bank account with online banking apparently.

Good luck.

jen245

Deep_In_Debt wrote: »

Barclays will probably be ok even if you owe them money. They are BR friendly. My ex OH went BR and Barclays were one of his biggest creditors and yet he still managed to open an account with them.

Barclays (and most other banks) can use the right of offset to empty your accounts to pay back debts owed, so I really wouldn't recommend opening an account where you have outstanding debts, regardless of whether they are BR friendly or not

Deep_In_Debt wrote: »

Natwest Step account is another one to consider

Natwest Step account is no longer available. It's now called Basic account, and ATM withdrawals are restricted to RBS group ATMs only, so not as good a choice now.