Problem "upgrading" Co-Op Cashminder bank account

JeremyPD

Can someone help me find a new current account - with a cheque book?

I am a "recovering, almost fully recovered, bad debtor".

Got in to bad debts in May 2005. I've since dealt with my severe debt problems successfully over the past 6.5 years.

I've held a Co-Op Cashminder account for those 6.5 years without any problems.

I foolishly thought that I could now request to "upgrade" to a normal current account with the Co-Op - to get a cheque book. [Yes, I know you need cheques rarely, but it is a pain when e.g. I want to send money gifts in birthday cards.]

Co-Op have turned me down.

My credit scores are currently 751 / Fair with Experian, and 433 / Good with Equifax.

No Bankruptcy, CCJs, etc.

I have repaid all but £1500 of my original £60k debt.

All accounts visible on Equifax and Experian now show as 'Settled' and 'Satisfactory'. I did have one 'Default' which "fell off" (at 6 years) in early Dec 2011.

So, I applied a few weeks ago to my current basic bank, the Co-Op, for their ordinary current account (one up from Cashminder). My application was referred. Then declined.

I appealed in writing in great detail - no joy - so then asked, in writing, for an explanation. Verbal explanation (would have preferred it in writing) stated something along lines of "accounts are still on your credit record".

What the Co-Op mean is that, although my seven closed bad debt credit card, bank, loan accounts are 'Settled' and 'Satisfactory', they won't "fall off" my credit history for another four years.

This is due to a 'blip' in 2009 (4 years in to repaying my debts) when I was made redundant. I had to renegotiate with my lenders. Paid all but two lenders off in full in spring 2010...

HELP!! - do I really have to wait another FOUR years until I can get a current account with a cheque book?

Any suggestions?

Final note: the two debts yet to be paid off are £500 to Nationwide (FlexAccount) and £1000 to Barclays so I guess that excludes Barclays and Nationwide.... I hope to Settle them in full by May / June 2012.

Thanks!

Tixy

No basic bank accounts have a cheque book, as you may know.

You could try applying for a regular current account with a different bank, you may find that somewhere will accept you now that you have no defaults on your file. Do the accounts that show just show that you got behind with payments (markers for 2/3months in arrears etc?

The 2 accounts not yet paid off - are they reporting currently that you are in arrears with payments? or are they currently showing that you are up to date with payments?

JeremyPD

Hi Tixy,

Thanks!

1. Yes, some of accounts Settled and Satisfactory show red in that I missed 4 - 6 payments when unemployed in 2009 [after 3 years of paying my arrangements satisfacorily].

2. Two outstanding - only 1 shows up on my Experian or Equifax reports: Nationwide and that is fine, not missed arranged payments.

I appreciate I can try applying to pretty much any bank for a current account (well, apart from my original banks: First Direct and Nationwide, I guess!], but I worry about yet another credit check against my account. I noticed the CoOp credit check knocked me down around 20 points on Experian.

So, any tips on bank or banks I could apply to for a cheque account, or do I give up and carry on living with my Cashminder account for another four years?

Other than this rejection, I have been happy with the CoOp... well, apart from when I need to pay in a cheque (no branch anywhere near me in NE Hampshire - roll on the conversion of Lloyds branches to CoOp).

aspandd

I'm having the same problem. Entered DMP in 2004. Just finished paying off all creditors. One creditor was settled in 2007, but lists payments up until then as red 6's. This wont drop off my file till next year. Seems very unfair to me. If I had just defaulted and not bothered to pay anyone all the defaults would be gone now.