Bank accounts after bankruptcy?

viciousorphan

dear mse,

what are the options available if somebody wants to open a bank account after being declared bankrupt?

TheGardener

On the high street, only Barclays will give an undischarged BR a Basic account, you don't get internet or phone banking until you are discharged. You will need to specifically ask for a basic account, not one of their regular current accounts (which would be declined anyway)If you open a Co-op account before BR they may let you keep it but they are getting quite tough and if opened just before BR, they may close it. Failing that, there is Secure Trust Bank who are not on the High St (look on line) but you do get internet banking but there is a £12 per mths charge.
Savings account are rarely possible anywhere but try googling Credit Union in your area (or area you would be living), these are a way of saving and I highly recommend them for BR's and everyone else too! Some of the very large CU's do have current style accounts but mostly just for savings.

Action_Jackson

I second TheGardener's Barclays recommendation - aside from being the only hight-street choice for undischarged BRs, I got very kind service from the Barclays staff who were very sympathetic, and I even got internet banking (which I understand isn't guaranteed in all cases).

You can also try something like the Cash Plus pre-pay card if Barclays doesn't work out, as the card is pretty much guaranteed acceptance, and also has banking facilities for wages, bill paying etc. You also get internet account management. There is a fee though.

grai

I have been BR since 2007 and got a basic Barclays account which has been great

does anyone know if it is possible to get an overdraft after a certain amount of time with Barclays? Are restrictions lifted after a certain number of years? I have been told conflicting theories

I have noticed recently cash till workers in supermarkets suddenly asking me if I want cash back which they have never done before

Dt1412

Grai

I was declared bankrupt in may 2010. I went straight to Barclays and got a basic bank account with online banking who have been brilliant. After about a year a got upgraded to a full current account with £100 overdraft I now have a £200 overdraft with them and a barclaycard.

It is possible to improve and get back on your feet. You just have to play the game and SORT OUT YOUR CREDIT FILE!!! It took me ages to do and send out all the letters but its worth it.

alastairq

I have noticed recently cash till workers in supermarkets suddenly asking me if I want cash back which they have never done before

This is really down to supermarket policy-of-the-day.

If one pays using a debit card, then they can offer the choice of also having cash' as well.

This is to save finding a cash machine?

I believe atone time supermarkets liked this facility as it reduced the amount of cash they had floating around in tills?

However, some supermarkets don't offer this facility at the tills..............preferring customers to use their cash machines?

Action_Jackson

grai wrote: »

I have been BR since 2007 and got a basic Barclays account which has been great

does anyone know if it is possible to get an overdraft after a certain amount of time with Barclays? Are restrictions lifted after a certain number of years? I have been told conflicting theories

I have noticed recently cash till workers in supermarkets suddenly asking me if I want cash back which they have never done before

I doubt being offered cashback is determined by your credit rating. I've never been refused it during BR. It's no different to taking cash out of a machine.

Sid2177

I don't know if it helps but I went bankrupt in April 2007 and managed to get a basic account with Co-op straight away. I also managed to get a savings account with nationwide and not long after whilst paying money into the savings account asked if I would like to try for a basic account with them.
Who ever you try just make sure you mention the bankruptcy because they'll probably do a credit check and the more you get turned down the worse your credit rating will be, as though bankruptcy isn't bad enough!!

alastairq

sadly[depending on viewpoint] Co-op changed their policy with regards to issuing Cashminder accounts to Undischarged Bankrupts.....last year!

However, they are happy to keep open existing Cashminder accounts of customers who subsequently petition BR.[providing the T&Cs are adhered to]

Also, they are happy to maintain internet access throughout the Undischarged period.

So..as has been reiterated so many times before...the primary task when considering bankruptcy is planning ahead...getting one's accounts up & running beforehand.

A failure to plan appropriately for future action will only lead to diminishing choices.

Mmusic

Natwest also offer basic bank accounts.

TheGardener

Mmusic wrote: »

Natwest also offer basic bank accounts.

Yes they do but unfortunately, not to undischarged bankrupts.