Safe to open a bank account?

horsecart

Over the last 5-6 years I've rung up a little bit of debt with telephone companies etc that have hounded me with debt collection agencies.

About 2 years ago I made the bad move of taking out a Wonga payment to my bank. The automatic payment put me very slightly in the red with my bank (less than 50 quid). But as all banks do they keep charging you over and over again until it racked up to £600-£700 on it's own, without me using the account again.
So as you can imagine I started getting debt collection letters from the bank too, and the companies they hired.
This has left me without a bank account for 2 years.

Around about 6 months ago, ALL debt letters stopped. I understand that does no really mean anything, it's just worth pointing out.


On a side note I would love to pay off my debts, but I don't have the money to be able to do so and would only alert big brother of my whereabouts. This will happen once I'm back on my own two feet with a stable platform to be able to pay them off without risking my own security.

The question I have is that I must open a bank account, but I don't know if as soon as I do I'll get my money taken from it to pay off the debts.

Advice please? (Thank in advance)

ian1969uk

Just be sure that you do not open an account with a bank that you owe money to, or who is connected to anyone you owe money to. Banks can take money from a current account to settle a debt, but this only applies within the same institution.

Tixy

No reason that you can't open a bank account (or could have done at anytime). You need to open a new bank account with a bank not connected with your old bank, or anyone you owe money to.

They won't be able to take money from your bank account without your permission to pay off debts with other companies or other banks.

Opening a new bank account is likely to be recorded on your credit file and so will confirm your current address, so its possible that you will receive debt collection letters again, if you can't afford to repay in full then you can always offer them a token payment until your finances improve.

RAS

Hi

Open a bank account with a company that does not share a licence with anyone to whom you owe money.

You would also be advise to apply for a basic bank account as these do not generate a credit check, so your poor credit rating will have no effect.

horsecart

RAS wrote: »

Hi

Open a bank account with a company that does not share a licence with anyone to whom you owe money.

You would also be advise to apply for a basic bank account as these do not generate a credit check, so your poor credit rating will have no effect.

I'm in 'trouble' with Lloyds TSB (as they were back then).

I was looking at the Barcleys basic account as it also includes a debt card (which is important)

horsecart

Tixy wrote: »

No reason that you can't open a bank account (or could have done at anytime). You need to open a new bank account with a bank not connected with your old bank, or anyone you owe money to.

They won't be able to take money from your bank account without your permission to pay off debts with other companies or other banks.

Opening a new bank account is likely to be recorded on your credit file and so will confirm your current address, so its possible that you will receive debt collection letters again, if you can't afford to repay in full then you can always offer them a token payment until your finances improve.

This is my 2nd worry. I've been forced to live back with my elderly parents and I don't want them to get hounded by debt collectors.

Tixy

They won't get hounded by debt collectors.
You may get some letters in the post from debt collection agencies to their address, addressed to you.

As RAS suggests opening a basic bank account may make that less likely.

heartbreak_star

Basic bank accounts still do an identity check through your credit file, I believe.

HBS x

horsecart

heartbreak_star wrote: »

Basic bank accounts still do an identity check through your credit file, I believe.

HBS x

Your right,

I went into Barclays yesterday and enquired about a Cash Card Account. The bank manager said they would have to do a credit check. I told them I would fail a credit check and why would I need one.
They told me that if I failed, I could still get a cash card account.
I asked them why do I need to do it then.
"You just have to"

Now that I've got no choice, I guess the debt collectors are going to come knocking again.

Screwed if you do, screwed if you dont.

heartbreak_star

Pre-paid card account? Something like Cashplus or Kalixa?

HBS x

Marshall_Hoares_Bandits

RAS wrote: »

Hi

Open a bank account with a company that does not share a licence with anyone to whom you owe money.

You would also be advise to apply for a basic bank account as these do not generate a credit check, so your poor credit rating will have no effect.

I have a basic bank account and it is recorded on my credit file.

You could also try banking with people like Think Money, however there are many restrictions, but they do not put anything on your credit file at any stage.