Barclays Not So Bankruptcy Friendly!

jason909

Be warned!

A few of my friends are having a nightmare with Barclays right now.

Only 1 week after they went bankrupt Barclays have suspended all phone banking, mobile banking has been suspended and internet banking impossible to use as you are unable to log in correctly as the system claims you have recently requested a new pin number so you cannot actually order another.

Branch staff are telling customers everything will continue as normal before the bankruptcy but this is simply not the case. I have read many forums where the best option is to actually open the basic bank account around 6 weeks after bankruptcy to avoid this happening.

If you are unfortunate enough to get the robotic staff based in India they will simply tell you that your account is going through maintenance.

raysunshine1234

I was advised to bail on my current account 4 weeks before i went bankrupt. I removed all my wages, moved important d.d over (to nationwide basic account) and then left my old account where it was. Apparently barclays are meant to be ok for bankrupt folk but only if there are no overdraft etc...

Hope that helps other people before they attend court!

TheGardener

Sorry to hear you are having problems - I have to say Barclays were excellent for me. I lost the internet and mobile banking but I expected that. Otherwise - staff were courteous and helpful and opened my pre BR accounts without any fuss.
I know some posters have said that the policy on removal of e-banking for the 12 months of BR has changed, but I would still advise anyone opening their basic account for use during BR to expect to lose that facility.

jason909

Barclay's is not a bankrupt friendly account. They will keep your account open as long as it's a basic account. Many other banks will simply suspend your account for a week or two until they are advised that the OR has no interest in that account. Once it's all sorted then mobile banking, phone banking and online banking continues.

Barclays been 'Bankrupt friendly' is simply a MYTH.

You lose telephone banking
You lose mobile banking (This is critical if you are a smartphone user)
Online banking is LIMITED to transfers of £300.00 per day - useless for many who earn a decent salary or have to pay rent or make other large transfers.
In branch is pretty useless as well many branches are going near automated with little to no staff - In branch staff is been reduced long waiting times (often weeks) to book a simple appointment.

How easy do you think it is to simply update your address or phone number?

It's near IMPOSSIBLE!

Do you ever ask why on earth do Barclays allow you to use online banking but not mobile banking? The easy answer is because they cannot fatherm a way to restrict transfers limited to £300.00 via your Smartphone.

TheGardener

jason909 wrote: »

Many other banks will simply suspend your account for a week or two until they are advised that the OR has no interest in that account. Once it's all sorted then mobile banking, phone banking and online banking continues.

I understand your frustration, but I have to disagree. There are many hundreds of posters on this board who have had accounts closed by more or less all the High Street banks when they went BR and with just a hand full of exceptions, Barlcays and the co-op have been the only High Street banks prepared to give them any account at all - so basic accounts from these 2 banks have been pretty much the only banking available to BR's - perhaps BR 'tolerant' is a better description than BR 'friendly'.
Its important that this site gives consistent, tried and tested advice to people faced with BR and until there is solid feedback from posters based on their own experiences to the contrary, Barclays and the co-op should continue to be signposted by this community.
The loss of internet and mobile banking is beginning to change but for may (most) the lost of this facility is the norm and I personally found it a good way to have a bit of breathing space to look at my budget, expenditure and money management habits.

owlet

jason909 wrote: »

Barclay's is not a bankrupt friendly account. They will keep your account open as long as it's a basic account. Many other banks will simply suspend your account for a week or two until they are advised that the OR has no interest in that account. Once it's all sorted then mobile banking, phone banking and online banking continues.

Barclays been 'Bankrupt friendly' is simply a MYTH.

You lose telephone banking
You lose mobile banking (This is critical if you are a smartphone user)
Online banking is LIMITED to transfers of £300.00 per day - useless for many who earn a decent salary or have to pay rent or make other large transfers.
In branch is pretty useless as well many branches are going near automated with little to no staff - In branch staff is been reduced long waiting times (often weeks) to book a simple appointment.

How easy do you think it is to simply update your address or phone number?

It's near IMPOSSIBLE!

Do you ever ask why on earth do Barclays allow you to use online banking but not mobile banking? The easy answer is because they cannot fatherm a way to restrict transfers limited to £300.00 via your Smartphone.

"They will keep your account open as long as it's a basic account. "

This is quite normal.


"Many other banks will simply suspend your account for a week or two until they are advised that the OR has no interest in that account. Once it's all sorted then mobile banking, phone banking and online banking continues."

I'd love to see the evidence of this because it's not what BR people reporting on here have said. A few (and I mean a few) have reported being able to keep former accounts running but they seem to be odd ones who have somehow slipped under the radar.

Barclays & Co-op are the only two at present who will consistently allow BR people to have basic accounts. Co-op account must be opened before BR though.

People are now starting to report that Barclays will allow internet banking before discharge, so that is an improvement.

Any restrictions imposed only last the year of BR anyway. Once discharge is achieved then the restrictions are lifted.

alastairq

You lose telephone banking
You lose mobile banking (This is critical if you are a smartphone user)
Online banking is LIMITED to transfers of £300.00 per day - useless for many who earn a decent salary or have to pay rent or make other large transfers.
I

I want to point out, the above has been a constant policy of Barclays for Undischarged BAnkrupts...certainly for the past 6 or 7 years.

However, Barclays are still pretty much the only High St. bank to be prepared to open a basic bank account for an Undischarged BAnkrupt...[that doesn't have additional fees etc added]..

Their basic account allows full access to banking facilities, such as direct debits, standing orders, cash transfers, etc. Exactly what else is needed?

Management of accounts can be awkward for a year.....but no different to what it was pre-internet banking, or pre-smart phones. Rents can still be set up to pay by standing order.

[This situation may change over the next year or so....due in part to new legislation.]

Co-op Cashminder accounts can retain internet access whilst Undischarged...but the account needs to be open some time before the date of petition...as mentioned in posts above.

I would suggest, if banking using BArclays is too much hassle doing it 'the old fashioned way'....then open a 2nd or 3rd basic account with BArclays...and use these accounts to pay SOs and DDs, bills, etc.....ONLY.

Income can go into the 1st account, with sufficient funds then being transferred to the other accounts to meet the bills.

This can mean as little as a once-a-month management session.?

By managing financially the above way, one should not be in danger of using monies previously allocated to other important bills.

This 'advice' is what is given by Co-op on their website, to those who are struggling to budget on low incomes....also it is the advice I received from CAB for similar reasons. probably the other charities say likewise.

dojoman

jason909 wrote: »

Barclay's is not a bankrupt friendly account. They will keep your account open as long as it's a basic account. Many other banks will simply suspend your account for a week or two until they are advised that the OR has no interest in that account. Once it's all sorted then mobile banking, phone banking and online banking continues.

Barclays been 'Bankrupt friendly' is simply a MYTH.

You lose telephone banking
You lose mobile banking (This is critical if you are a smartphone user)
Online banking is LIMITED to transfers of £300.00 per day - useless for many who earn a decent salary or have to pay rent or make other large transfers.
In branch is pretty useless as well many branches are going near automated with little to no staff - In branch staff is been reduced long waiting times (often weeks) to book a simple appointment.

How easy do you think it is to simply update your address or phone number?

It's near IMPOSSIBLE!

Do you ever ask why on earth do Barclays allow you to use online banking but not mobile banking? The easy answer is because they cannot fatherm a way to restrict transfers limited to £300.00 via your Smartphone.

Please name 1 bank apart from the coop who actually do this?????

jason909

Santander & Natwest!

Don't believe me? Find the number to the bankruptcy teams and give them a quick call.

alastairq

The above may well be new policy on the part of Natwest & Santander.

However, if simply going into branch, the staff are less knowledgeable about their employer's policies regarding Bankrutpcy and basic accounts.

Barclays are apparently in the process of allowing internet & phone banking whilst Undischarged....however, again, achieving this can be variable [of course, one should & could always appeal?]

An acquaintance petitioned for BR, recently. A basic account with Santander was already in place. Santander were not creditors...

The account was closed by Santander a few weeks after the date of petition [assuming the OR had contacted them around that time]

Attempts to open a new basic account were declined by Santander. [The acquaintance already had a Co-op cashminder account open, pre-BR, on my advice]

An appeal to the decision was lodged, the Santander BR team contacted...plenty of the right noises, so far no basic account!

This is, as of one month ago, & BR date back in March this year.

New High St banking rules are apparently due to come into force soon, so possibly some of the banks are preparing themselves in respect of BR?

Point to note....BArclays have currently one of the poorest ratings concerning customer care...of any of the High St banks.

However, regarding the OP's original post?

Barclay's policies regarding retention of internet & phone banking once Undischarged have been well known and advised about [by this forum...[I don't know of any other, more effective, BR forums around?].

Had the OP's friends been better briefed [or, more knowledgeable, perhaps?] prior to the BR petition being sought, then Barclay's actions would not have come as such a surprise to them?

However, as I have noted, we are presently in 'changing times' in the above regard......and if other banks are in the process of changing their long-held policies towards Bankrutpcy, then it is good to know about it......so that the information can be passed onto others?

AGA78

I went bankrupt last Monday and have a current account with NATWEST ( NO overdraft or debt with them) . My account was frozen and i was advised by the branch that the reciever needed to send an email to their bankruptcy team. This was done and now my account is back to normal. including internet and mobile banking. This is just my personal experience.