basic account

Bella_Smythe

so were at the stage of wanting to open basic accounts, and co op seem the best (?only) choice. can we open a basic account over the phone (i know cant do it on line) what if they say no? if we have an 'ordinary' current account but dont have or dont use overdraft what will happen when we go BR? will we be allowed to keep it for general living?

alastairq

The ordinary account will be frozen/closed by the bank.

In BR, only basic bank accounts are 'permitted'.

Close your ordinary account.

Phone Co-op, apply for one [or two] Cashminder accounts.

If...the computer declines, immediately ask the Customer adviser to 'appeal' the decision.

UpToMyNeckInIt

Sorry to be negative here: I believe even CoOp recently stopped offering new accounts to bankrupt customers. See this BBC news article:

http://www.bbc.co.uk/news/business-19621680

You might need to look elsewhere.

wharty

Hi Bella.

Me and my wife applied for a co-op basic account last week.
We walked into our local branch and asked to open the basic account.

The clerk said "why do you want to open a basic account?"

I was taken back a little with the response but a bit of quick thinking later we told him we wanted it to budget better. We wanted our direct debits to come out of it and we would pay a standing order each month to cover it from our normal account. That way, whatever was in our other account after the standing order had gone out was ours to spend.

We filled out the forms and were told we would be credit checked.
We rang today and were told our account was opened.

We then went into our local Brittania bank (part of co-op) and got the sort code and account number rather than waiting the 10 days they take to get it in the post to you.

You will need to go in and speak with them and take your ID etc.
Co-op normally want you to make an appointment according to the clerk but as they were not busy they dealt with us on the spot.

Just be aware they may ask you why you want the basic account!

It took 4 working days to apply and get it opened. We even have internet banking tonight!

wharty

UpToMyNeckInIt wrote: »

Sorry to be negative here: I believe even CoOp recently stopped offering new accounts to bankrupt customers. See this BBC news article:

http://www.bbc.co.uk/news/business-19621680

You might need to look elsewhere.

I don't believe the OP is bankrupt. We did the same thing and are applying for bankruptcy soon.

UpToMyNeckInIt

Very sensible, indeed essential, advice. Get the new account before you apply for BR.

CoOp may not offer new accounts to undischarged bankrupts, but are unlikely to turf out an existing customer, if they subsequently go BR.

sniggings

alastairq wrote: »

In BR, only basic bank accounts are 'permitted'.

any account is permitted, getting anything other than a basic account is the problem because most have credit checks or do not allow BR but no one is not permitting the opening of a standard bank account, if you can get one, or already have one and it's not frozen or withdraw after BR.

now

On declaring BR all accounts are frozen even if you have no money in them, the Coop is no longer offering accounts to undischarged BRs leaving you with the only option of Barclays or prepaid

alastairq

On declaring BR all accounts are frozen even if you have no money in them,

Once more, no they are not!

Not all! Only some! [I had two, basic accounts, neither suspended , frozen, zilched, or any such thing, both used throughout, both with the full knowledge of the OR...who thought it a good idea!]

Why is there such a focus on undischarged BRs having to obtain a basic bank account, after the BR petition?

The accepted advice given on here is, prior to finally taking the inevitable step of petitioning BR, to apply for basic accounts either at Co-op or Barclay's. The reasons being, neither bank have a policy of freezing accounts instantly they are notified by the OR of a BR......that the OR 'has no interest' in those basic accounts.

Barclays normally suspend internet access whilst undischarged..Co-op do not.

Co-op do not 'freeze' Cashminder accounts once notified of the petition, and the OR has declared 'no interest'...

Same with Barclays [basic].


So, what is the problem?

As I see it, the only people who will find issues are those who rush out to petition BR without prior preparation.

Other banks have a no-tolerance policy, which is well documented on this forum.

now

alastairq wrote: »

Once more, no they are not!

Not all! Only some! [I had two, basic accounts, neither suspended , frozen, zilched, or any such thing, both used throughout, both with the full knowledge of the OR...who thought it a good idea!]

Why is there such a focus on undischarged BRs having to obtain a basic bank account, after the BR petition?

The accepted advice given on here is, prior to finally taking the inevitable step of petitioning BR, to apply for basic accounts either at Co-op or Barclay's. The reasons being, neither bank have a policy of freezing accounts instantly they are notified by the OR of a BR......that the OR 'has no interest' in those basic accounts.

Barclays normally suspend internet access whilst undischarged..Co-op do not.

Co-op do not 'freeze' Cashminder accounts once notified of the petition, and the OR has declared 'no interest'...

Same with Barclays [basic].


So, what is the problem?

As I see it, the only people who will find issues are those who rush out to petition BR without prior preparation.

Other banks have a no-tolerance policy, which is well documented on this forum.

best read this


http://webarchive.nationalarchives.gov.uk/+/http://www.insolvency.gov.uk/pdfs/guidanceleafletspdf/bankaccount.pdf

now

All your bank accounts are usually 'frozen'
by the bank when it becomes aware of
the bankruptcy order - so you will need to
make alternative arrangements for
receiving money into your account and
paying standing orders, direct debits etc.
You should not try to open a new bank
account before the bankruptcy order is
made, because this account will also be
frozen.