Bank Account

dannyfleetwood

Just wondering why banks decline bank accounts to people on DMP/IVA etc or who just have a bad credit history?

It isn't exactly a credit agreement without an overdraft is it.

Anyone know an exact answer?

I need a new bank account for rent and bills to go out of. I know I will get one with Barclays as a basic account but I am talking more like firstdirect who offer a great incentive to join them.

Thanks.

oldsmokie

To put it bluntly it's down to British culture. Once someone is down we can't resist kicking. It's more likely than not that you'll have to get most adverse information off your file before you'll get a 'normal' bank account.

dannyfleetwood

Thanks for the quick response!

Seems a very odd thing to do though doesn't it, rejecting someone on their past when they have now got a much better job with a much better salary which would be paid into THEIR bank.

fevlo

I think its less to do with "kicking people while they are down" and more likely to do with the way banks process things like card payments.

Not all card payments are authorised at the bank, it all depends on the value ect.
If you make a payment and the bank doesnt check for avalible funds and you dont have the funds when they take the money out you would be using an unauthorised overdraft.
The bank credit score you because they want to know how likely they are to get that money back.
Basic account come with a debit card that will always check for avalability of funds at the bank hence why they cant be used at pay @ pump or on trains / planes

Iwillresolvemydebt

fevlo wrote: »

Basic account come with a debit card that will always check for avalability of funds at the bank hence why they cant be used at pay @ pump or on trains / planes

Hi, most, if not all pay at pump machines round here take debit card... I assumed they all did?

theoretica

I think free accounts are basically a loss leader for the banks, who hope to make money out of us through other services, especially charging interest on debt. If you have bad credit they don't want to lend you money, so won't make a profit, so maybe you are worth the cost of running an account, but they don't want to give you incentives.

Davenport

First Direct accounts come with a £500 free overdraft facility which is not permitted to people in IVA