Problems opening a Co-op Cashminder Account

Smokey_Joe

Hi. In preparation for our forthcoming BR I phoned the Co-op about opening a Cashminder account. One of the questions they asked (after they asked if I was an undischarged BR) was whether I was 3 or more payments in arrears on any credit accounts. I of course, perhaps stupidly, admitted I was and was informed that as a result they couldn't open an account for me. This was a surprise, as in all the info on this forum (and elsewhere) I've read about the Co-op account there's no mention of this 3 or more payments in arrears and they won't open it. Has anyone else had this problem and is there any way around it? (Had I have known about the 3 months overdue rule I would have opened the account in plenty of time, before we were 3 payments in arrears).

We can't open a Barclays account till after we go BR as we both owe Barclaycard money and I presume they'd just grab any money paid in to offset the Barclaycard balance(s)?

We currently bank with Nationwide, we don't owe them anything, who I am fairly certain will shut our accounts when the OR informs them of our BR. All our bills are paid by direct debit from there and our benefits are paid into the same account.

The thing that's worrying me is this - when we go BR we'll be between accounts with nowhere for our benefit payments to go into and DD's to go out of (for at least a few days?) until we can get everything changed over to Barclays (the only option left as far as I know). As our DD's are spread out through the month the worry is that there will be at least a couple of DD payments missed. Now I know we can pay those payments manually once we get the banking sorted out but it will mean having to contact the companies concerned at what is already a very stressful time for us.

Has anyone any idea how best to organise getting our benefits and paying our direct debits in the changeover? Does anyone know if Nationwide might agree to keep the account open long enough for the new account to get up and running with benefits and DD's redirected to the new account?

Any help or advice welcomed, especially if you've had a similar experience and found a way around it. Many thanks.

john1002

To be fair never heard that before, two things you can do is apply again and see if the question is asked, if it is then query why this is not mentioned on the website or in any literature.

If you cant open co Op then it will take at least a week I would say for the Or to notify and in this time you can open the barclays account and get things switched.

keep us posted as this will be a major note on the co op cashminder application process.

john

tigerfeet2006

It's the first we've heard Of it Smokey. Co-op are really clamping down it would appear. They really are discouraging people opening the account it would appear. I am guessing if you said. O to those questions it would come up on the search any way.

Bella_Smythe

thats worrying news for us considering/saving up to go bankrupt.

Bella_Smythe

sidenote; how ridiculous does that sound, 'saving up to go bankrupt!'

Smokey_Joe

john1002 wrote: »

To be fair never heard that before, two things you can do is apply again and see if the question is asked, if it is then query why this is not mentioned on the website or in any literature.

If you cant open co Op then it will take at least a week I would say for the Or to notify and in this time you can open the barclays account and get things switched.

keep us posted as this will be a major note on the co op cashminder application process.

john

Called them again and this time no questions about being 3 or more payments in arrears. Have now received the application pack so once I've completed it and heard back from them I'll report back here on the outcome. Thanks also for the info re the OR taking a week to notify the banks - hopefully (co-op permitting) this means we can switch accounts without too many problems when the time comes.

rossireps

dont bank on it being a week, halifax closed my account well sharpish

john1002

to be fair though some banks are very proactive and actually search the gazette to cross match for customer details and close them before even the Or notifys them.

I still think the other party will be fine especially if they open up the co op account as this is a proven basic account so the Or will have no interest in it.

john

creditcrunchcharlotte

I cant comment on co-op but I have just gone through a similar thing and had some debt with Barclays. My HSBC account was frozen within days of my BR hearing. I managed to open a Barclays account the same day but was worried about putting any money in there as they could just sweep it across to my debt. I have just (4 weeks later) had a letter from Barclays saying that they have been informed of my bankruptcy and closed my debt account but kept my basic cash account open so I can no use it. It meant that I didn't have a bank account for a few weeks but I just got my salary paid into my sisters account, paid my bills from her account online and she gave me the rest in cash. One top tip though is to make sure you take a note of all your standing orders and direct debits with their reference numbers before your account is frozen as this will make it a lot easier when your new accounts are all set up (but you have no access to online banking so you have to go into the branch and do it all)

alastairq

All goes to show that prior to walking into Court for the BR petition, everything financial needs to be sorted out ready for the day.

In fact, sorting new basic bank accounts, getting them up-and-running, must be the very first thing someone in debt needs to do?

Before even BR is considered?

Perhaps even months before?

will789

Thanks for the advice. Its better to be prepared than having to panic after the event. I will sort out a new account today.