Having real issues obtaining a free bank account.

henryJSB

Hi everyone, not sure if this is the right forum so sorry if this is incorrect, but basically I wanted to create a topic about my issue of getting a free bank account.

Basically I've recently put myself on a DMP as I ran into thousands of pounds of debt with credit cards, payday loans and overdrafts. I had to give up my bank accounts as I either owed them money or they were linked to loans I had taken out.

I was advised by my DMC to get an account with ThinkBanking, so I did. Don't get me wrong, it's a good account but I am massively put off the 14.95 fee per month, it's just more expenditure I don't need when surely I can have a basic account elsewhere.

However I don't seem to be eligble for even the most basic bank accounts with high street banks that don't charge for accounts. Barclays Basic Cash Account rejected me, when I was told it was a guaranteed acceptance. Lloyds TSB cash card account also rejected me as well.

I've recently put in an application for a Yorkshire Bank readycash account and a Co-Op Cashminder account but I'm not hopeful as I was told by Co-Op that they had 'lost' my application, and I don't think I'll be able to get one with YB considering Barclays (who I am told accept everyone) flat out rejected me for reasons they can't disclose.

Does anyone know what the issue might be? I was told people with IVA's and even bankruptcys could get the Barclays Basic or Co Op Cashminder accounts so what could be the issue with me? I was a victim of fraud a while ago but the operative word is victim and not perpetrator, which I thought was the only thing that could stop you getting these accounts.

Any advice is really appreciated, thanks.

Time_to_face_the_music

Hi Henry :hello:

Who is your DMP with? Alarm bells are ringing at the ThinkBanking recommendation and my bet is that your bank account isn't the only thing you are paying for?

If you are paying for your DMP, please read this

https://forums.moneysavingexpert.com/discussion/2077631

Then consider approaching CCCS or Payplan for some free advice and a no fee DMP that is no different to anything that financial vultures charge for.

Re bank accounts, we use the Co-Op, maybe they really have lost your application, give them a call and check it out.

Good luck and please let us know how you get on

henryJSB

I had absolutely no idea you could get free debt management plans. I thought there was a fee no matter who it was with. That is real news to me. And yes - ThinkBanking is an affiliate of the company I have the DMP with.

I will ring Co-Op Cashminder again and check what happened. But I think I guess this may have something to do with me being a victim of fraud, and having my identity stolen, but I don't know how that would count against me.

bargainbetty

Nationwide also do a basic bank account, and you can apply in branch and get a decision immediately.

Definitely rethink your DMP - go to CCCS or Payplan and make sure that every penny of your money goes to your debts, and not the debt management company. When you call to cancel, they will tell you that the free ones aren't as good, that creditors don't talk to them properly, that they won't get interest frozen, they won't look after you etc. All complete and utter cobblers. The fee-charging ones want your money. The longer the you pay, the more they get. Very firmly tell them to get stuffed.

Good luck

dancingfairy

Have you got an account already? It's not your fault if you have been a victim of fraud but this could be what's putting the banks off (as presumably they can't tell your you and not the person who stole your identity??).
You may need to stick with your current bank that you've got. What's the situation there? Do you owe payday loans/have an overdraft? Normally it's best to start with a clean slate so payday loan companies can't take money out of your account to pay themselves first but given the situation you may need to stick where you are.
Has all the identity stuff been sorted? Have you sorted out any issues with experian/equifax? Have your registered with CIFAS to get a fraud prevention marker thing sorted so only you know your password? Have you spoken to anyone regarding the identity theft at all? I'm wondering if they can help regarding getting a new bank account?
Best of Luck
df
Edit: I'm also wondering whether when applying for a new bank account it's a case of computer says no? and whether you might need to appeal to a higher up official to get someone to physically look at your situation if needs be?

henryJSB

dancingfairy wrote: »

Have you got an account already? It's not your fault if you have been a victim of fraud but this could be what's putting the banks off (as presumably they can't tell your you and not the person who stole your identity??).
You may need to stick with your current bank that you've got. What's the situation there? Do you owe payday loans/have an overdraft? Normally it's best to start with a clean slate so payday loan companies can't take money out of your account to pay themselves first but given the situation you may need to stick where you are.
Has all the identity stuff been sorted? Have you sorted out any issues with experian/equifax? Have your registered with CIFAS to get a fraud prevention marker thing sorted so only you know your password? Have you spoken to anyone regarding the identity theft at all? I'm wondering if they can help regarding getting a new bank account?
Best of Luck
df
Edit: I'm also wondering whether when applying for a new bank account it's a case of computer says no? and whether you might need to appeal to a higher up official to get someone to physically look at your situation if needs be?

@bargain betty & time to face the music, thanks guys I will look into the free debt management plans ASAP.

@ dancing fairy.

No I have not registered with CIFAS and have not spoken to anyone regarding identity theft really, apart from t-mobile as thats who it happened with. How would I go about getting this identity theft thing sorted as I really think this might be whats getting me rejected?

The bank i'm with now or was with was HSBC and I can't stay with them as my overdraft and and credit card are on my DMP. The other 'good' bank I had was Santander, and I am hesitant to use that as it's linked to my unpaid Wonga loan, and I'm worried if I pay stuff in they will attempt to collect payment (which a Santander advisor advised me they can and probably will do)

I'm just really annoyed at being saddled with this ThinkBanking account really. At the time I felt pressured into it and it made sense given my situation and the fact the advisors told me I was unlikely to be accepted elsewhere, but now I have it I find it really annoying. There is no set date when the 14.95 fee comes out so sometimes when someone transfers money into my account it comes out of that and leaves me with nothing, furthermore they don't have a faster payments system so someone paying into my account or me paying into someone elses takes about 1 to 2 days which really is inconvenient

Thanks for the help so far guys.

[Deleted User]

HenryJSB - ditch any paid-for DMP firms & contact Payplan or CCCS. All of the High St banks do free basic bank accounts - just pick one that's not connected with any of your debts. I am currently seeing a friend through a DRO and she is getting very good advice & help from National Debtline (free NGO). A good starting point is their https://www.mymoneysteps.org/

Close the thinkbanking account - the advisors also lied to you. Free basic banking is available after Government pressure - all the major banks *have* to offer them. You can transfer your payments yourself to the new free account. Take the list of payments & details with you when you open one, you can open a basic bank account online with some banks (eg Lloyds TSB)

MSE guide to basic bank accounts: http://www.moneysavingexpert.com/banking/basic-bank-accounts

henryJSB

That's the issue though Joolz, I seem to be getting rejected from these basic bank accounts that are open to everyone, and I'm trying to figure out why.

beadgirl87

Think bank is linked to RBS and Natwest, so bare that in mind if you have debts with these banks.
I hear it is useful as a budgeting tool, if you cannot manage your finances but agree that it would be better not to pay every month.
Maybe get an appointment at the bank and talk about the account, maybe face to face they can look into your circumstances a bit better.

bottleofred

The co-op basic bank account also gets my vote and you should call them to find out what happened.

Kimberley

Why not apply for this card? You can use it like a bank account and no one is turned down for it.

http://www.mycashplus.co.uk/