Co-op Cashminder account query?

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We opened a Barclays account having lost our business on the advice of a financial solicitor.

My wife and I visited the branch and were promptly taken to an office, to do the deal as it were. The lady informed us she was the person who dealt with all new accounts for both this branch and another one in the next town.

We spent 10 minutes explaining our circumstances and that Bankruptcy was the next step to which we were given the basic account and the lady also opened an 'everyday savers account' for us attached to same account. The accounts allowed internet banking and telephone banking but no cheque book and no overdraft which was perfect for us allowing us now to carry on to the next stage in our lives.

She was very sympathetic and open about her husbands own personal financial situation and that it was nothing to be ashamed of.

She arranged all the paperwork as one would expect and a paying in book for the savings account promptly arrived a few short days later along with a debit card each.

We are now a number of months down the line and having gone bankrupt eight weeks ago, we discovered there was an error on our online banking and also when we telephone to transfer money they informed us telephone banking was also not available.

We were refused any help as to what the error codes meant but was informed by a foreign gentleman to call into your local branch and tell the cashier there is 'maintenance on your account' and they will explain everything.

Panicking I telephoned the fraud line thinking something was seriously wrong to be told they couldn't help either. Thank goodness for Google. A split second later up came the problem on various blogs.

Barclays do not allow internet banking or telephone banking once you have gone bankrupt.

Anyway a very long story short... Although we both are in employment for the moment we qualify for tax credits and have had them paid into the savings account for weeks now.

Today I traveled the 6 miles I now have to go on my day off to get the cashier to transfer the tax credits across to the basic account. I got there to be told by the cashier that our savings account didn't exist.!!! Panic set in very quickly yet again.

Eventually I spoke to a 'Personal Banker' to be informed Barclays don't let you keep a savings account with them once you go bankrupt.

The Personal Banker agreed we should not have been given the savings account, the internet banking and the telephone banking from day one and this was a major mistake on their part.

He has however given us a loan as the payment due to go into the account yesterday failed and will be returned to the originator. I thought we would not qualify for a loan as we were bankrupt and this account wouldn't allow it, funny how they can bend the rules.

We were sent a letter three days ago according to Barclays advising the closure of all services and the savings account and as yet, still today, it has not arrived.

I have telephoned the Co-op and they assured me they do internet banking even when you have gone bankrupt. They asked if I would like to transfer to them, I think we will.

Why internet banking is not allowed escapes me. You can not spend what haven't got so what is the difference???

System

You absolutely can go overdrawn, especially if it was a purchase such as petrol where the card reading maching doesn't go back and check with the mothership.

CoOp are slow to update. Their internet banking can't even give you an up to date balance. However by using the text message service you can get a very up to date balance, so just get in the habit of using it and you'll be fine.