DRO and current account

pedlar

Hi

My DRO was approved about a month ago and my bank First Direct have now informed me they are closing my accounts as they don't deal with customers with a DRO. Am I going to have problems finding somewhere else to open a current account? I ask because the internet suggests so. Any suggestions who to try? My experian credit score was just short of fair despite the DRO when I last looked at it a week ago before cancelling.

Thanx

National_Debtline

Hi pedlar


Your best bet - based on their policy towards bankrupt customers - may be Barclays Bank. Bear in mind that you should be specifically asking for a basic account (no overdraft facility and no frills, but usually offering a debit card and Direct Debit facilities) - if you don't make this clear, it will usually be assumed that you want a current account and your application will be credit-checked accordingly - and most likely declined.


Good luck


Dennis
@natdebtline

pedlar

Thanx for the answer and the suggestion. Didn't realise there was a difference between a basic account and a current account. I wanted to try Marks and Spencer, for the £100 gift voucher and in store spending points on card, plus no DDs needed I think, but they said because the £500 overdraft was as standard, and confirmed a credit check would be needed, I figured this would work against me if it was turned down as another negative on my credit file. Would you say it's not worth trying MnS? If so I will go with Barclays. Can you elaborate on the differences between a basic account and a current account?

Thanx for the input

mwarby

M&S are HSBC as is first direct, these will be no go as they don't like DROs

Maybe try halifax/lloyds or nationwide too

National_Debtline

pedlar wrote: »

Thanx for the answer and the suggestion. Didn't realise there was a difference between a basic account and a current account. I wanted to try Marks and Spencer, for the £100 gift voucher and in store spending points on card, plus no DDs needed I think, but they said because the £500 overdraft was as standard, and confirmed a credit check would be needed, I figured this would work against me if it was turned down as another negative on my credit file. Would you say it's not worth trying MnS? If so I will go with Barclays. Can you elaborate on the differences between a basic account and a current account?

Thanx for the input

You can pretty much guarantee that any account offering "perks" like the above will involve a credit check. The banks offer these incentives as they are ultimately hoping to profit from your custom in the long term, even if that means giving money away to begin with.


The following is a guide to what basic accounts offer:


https://www.moneyadviceservice.org.uk/en/articles/basic-bank-accounts


Dennis
@natdebtline

pedlar

Thanx for the link. I also found this link on the mse website itself

http://www.moneysavingexpert.com/banking/basic-bank-accounts

I understand now why this type of account is not more publicised because the banks don't stand to make any money from it. There is a note in my link saying that most banks will have to provide them by the end of this year, and a link for updates...

Yes the guy on the phone on MnS said that since they were also with HSBC like First Direct that might be the case though he wouldn't say for sure....

Will look up the banks mentioned and then decide

Thanks for the help....:beer:

fermi

As said, Barclays is the safest bet, as they are the only real free account that is OK with people on a DRO/BR.

Lucy5781

I moved to Co-Operative bank in 2013 when my DRO began, basic cashminder account was fine for me.

Lxx

bell123321

Halifax is a no as I had a current account no overdraft (all paid and got rid of the over draft) no cheque books owed them nothing and they closed my account without warning when I got a DRO. As others suggested go to barclays and ask for a basic account. You get a debit card and I have online banking too so it's a good account for every day. I think co op used to do accounts too but not sure if they still do. I would not risk any other bank for the time being.

Gordie1975

i have a HSBC basic account, and honestly its just like a current account, direct debits, online banking, just no overdraft, however i did have the mind to get the "backup" Hsbc account before getting my DRO.

LEO83

So 9 month into my Dro I by chance applied to lloyds and nationwide for basic accounts.... Just to see the outcome
Lloyds within half hour emailed me with new account details and opened the account.
Nationwide today received in the post a PIN number phoned them to query they have given me a cash card account cards on way.

I was totally honest on all forms said I'm on benefits gave all correct details every address for last 6 years and they both opened it.

Find it strange co-op never gave me one at beginning and Barclays opened one and closed it at the beginning no exclamation what so ever from them.