Lloyds basic bank account

snudge27

Hi there

I'm trying to help a friend out with her finances, and she says that Lloyds have restricted her to a basic bank account with a cash card only, as she doesn't pass their credit check for a debit card.

I was under the impression that basic bank accounts still came with a debit card, and only needed proof of ID and address? Or is her credit score potentially that unbelievably bad that banks won't even give her access to a debit card?

grumbler

snudge27 wrote: »

I was under the impression that basic bank accounts still came with a debit card,

Most do nowadays, but not all. In the past most came with cash cards.

MSE article: Basic Bank Accounts

Or is her credit score potentially that unbelievably bad that banks won't even give her access to a debit card?

Only she can tell you.

snudge27

It was more of a general question regarding the really poor credit score. Is it possible that someone's score can be so bad that they don't even qualify for a debit card, given that you can still only spend money you have on it?

grumbler

Yes, it is possible. Some people can't even get a free account with a cashcard and pay for 'surrogate' accounts like Think Money, ClearCash, Ffrees etc.

Anthorn

snudge27 wrote: »

Hi there

I'm trying to help a friend out with her finances, and she says that Lloyds have restricted her to a basic bank account with a cash card only, as she doesn't pass their credit check for a debit card.


I was under the impression that basic bank accounts still came with a debit card, and only needed proof of ID and address? Or is her credit score potentially that unbelievably bad that banks won't even give her access to a debit card?

We need to look at the inauguration of basic bank accounts which was an idea initiated by government but I forget which government. The premise was that anyone could have a bank account in particular those who ordinarily wouldn't get a bank account.


Therefore Lloyds action is commendable. It's not a restriction as such but a helpful decision. There are alternatives some of which may provide a debit card. Shop around for other accounts.

jonesMUFCforever

It could be that she had miss used a debit card through small transactions perhaps taking her overdrawn so they have restricted her to a cashpoint only card?
I think this is better than the old rule of 3 strikes and you are out - ie closing the account.

pmduk

I know Barclays reserve the right not to issue a debit card on their basic account, although I don't know of anyone that's been on the receiving end of that. It sounds pretty drastic to me, after all banks earn commission on debit card transactions. Are you sure you know her *full* financial history?
Don't take this the wrong way but be careful of creating any financial associations.