MSE News: Co-op blocks bankrupts from bank accounts

ironlady2022

To be honest, I'm an avid fan of Coop and agree with their latest move. Agree all banks should offer loss leaders, but when ppl only have 1 out of 2 choices, it's a wonder their savings rates aren't as good because normal current account customers like us are subsidising the cost of the basic bank accounts.

They still need to make profit at the end of the day and unfortunately these customers do not make the bank money. Issusing cards, pins and statements do cost something, and somewhere down the line, the cost needs to be absorbed.

mac300579

I applied for a bank account with coop shortly after being made bankrupt in 2009 and I was refused then - so I don't believe they have ever had a policy whete they accept everyone that turns up on there doorstep!! Barclays accepted me straight away (including internet banking). I think yhey are mistaken though if they think the only people who have basic bank accounts are undischarged bankrupts as lots of people with poor credit ratings have one too and these are offered by other banks. Of course post office accounts are no good if you are working as they only accept benefits so if the goverment is serious about getting people into work and keeping them there they better act now.

PhiltheBear

JuicyJesus wrote: »

There is a lot dodgy that can be done with a basic bank account. Clearing cycle fraud and money laundering spring rapidly to mind.

As someone who spent the last few years of my employment looking at card fraud (and the majority of basic accounts only let you have a card) I'd be fascinated to know how you work that out.

purplepercy

When I went bankrupt in 2011 the co-op was the only bank i could find to let me open a bank account. I had to have a bank account as this was the only way the company i worked for would pay my wages and also many companies only let you pay regular bills by this method either by using a direct debit or standing order. The nearest branch to me is 12 miles away so i have to rely on internet banking.

JuicyJesus

PhiltheBear wrote: »

As someone who spent the last few years of my employment looking at card fraud (and the majority of basic accounts only let you have a card) I'd be fascinated to know how you work that out.

First party fraud is possible with any account. You don't need to have a cheque book to pay a forged cheque in, for example.

debtinfo

Hi mac, they had a clear policy of accepting bankrupts, the only reasons youwould be turned down is if you had debt with the co-op themselves or they could not verify your address, also you had to actually go to a branch as they they had "computer says no syndrome"

molemag

I've long felt that the Government should provide a basic bank account for us all, if we want one - Cash Card only plus internet banking; no loans, no overdraft, just somewhere safe to put your day-to-day money. No interest would be paid to depositors, and no charges made for transactions,

It could be operated via Post Offices.

BugsyBrowne

molemag wrote: »

I've long felt that the Government should provide a basic bank account for us all, if we want one - Cash Card only plus internet banking; no loans, no overdraft, just somewhere safe to put your day-to-day money. No interest would be paid to depositors, and no charges made for transactions,

It could be operated via Post Offices.

I also wish they would look after our soldiers when they leave the army due to illness or disability etc but they don't and that should be first in the queue for the government not bankrupts and their money deposits.

chanz4

In a way it may give a wakeup call, bankrupcy is a serious thing and not to be taken lightly

k12479

molemag wrote: »

Government should provide...Cash Card

You have to pay for passports, driving licences, etc. so it would have to be for cash cards too.

molemag wrote: »

...no charges made for transactions

Someone still has to pay for these, why should the taxpayer?

molemag wrote: »

Government...internet banking

:rotfl:

Where would it stop - providing car/house/travel insurance, etc?