Bank credits when acc frozen 2 May 2020 at 11:36AM in Bankruptcy & living with it 10 replies 161 views

george_112

 hi, sorry about all my last minute questions. I’m pressing the button on Monday and thought I had a basic account with Barclays but no, a standard acc was set up. Not all bad as at least my income was protected as I moved everything there away from Natwest. Anyway I have been unable to change it to a basic over the phone and can’t get to a branch due to Coronavirus closures. I’m going to open a nationwide as soon as I have my confirmation. This will give me a chance to sort wages in
time for end of month. Now can I use the switching service even though account with Barclays will be frozen? Also will payments still go in a frozen account? I am due some tax credits and housing benefit. I will try get them moved but just incase it’s tight for time. Or am I better opening a basic Barclays account once I’m declared bankrupt. Do you think this would be easier. 
Thanks 

mwarby

Which bank him you want to bank with going forward ? I would speak to that bank, it's not a given that your account with any of the banks mentioned will be frozen for anything more than a few days while the paperwork occurs. In normal times yes they would rather it were a basic account, but I'm sure that during this lockdown arrangements can be made. The bank you chose to use will know your bankrupt soon enough, you've picked the 2 best options IMHO, and while they won't grant you credit for the next 6 years they will both hope that you can eventually become a profitable customer for them long term, neither are IMHO likely to intentionally be difficult

Its likely that if your account is frozen a switch would be declined

you have no debts with Barclays if I recall correctly, I'm fairly sure they have no interest in denying you access to your money, or making life difficult. It's quite likely that the account will be frozen for hours or days, and all that will happen as far as you are concerned is you will get sent a different debit card

If money goes to the Barclays account once they know the OR has no interest in it, it can easily be sent on to Nationwide, the worst case being they send a cheque, which you send to nationwide. As far as I know inbound payments aren't blocked unless the are suspicious (a few grand from an uncle in Syria maybe blocked, benefit payments unlikely)

The thing you should be doing IMHO is getting to a cashpoint and taking out at least a hundred to tide you over for food and essentials (preferably for a couple of weeks, I'd normally say a few days, but lockdown could slow things) should your account be frozen, the last thing you want is for your card to be declined at supermarket or filling station. By all means keep using your card as normal, but have some cash as a backup. Of course only get the cash you feel you can store safely. You should mention this and your reason during the interview

george_112

Thank you for your answer. Yes you’re correct, I don’t have any debts with Barclays. I have withdrawn a couple of hundred just incase and left just enough in there for the bankruptcy fee and the essential DD that come out on Monday. 
I would prefer Barclays as I have already moved all my payments etc there. 
Are they actually able to downgrade the account but keep the same acc number like they can upgrade and nothing changes? Is there a department in the bank I am best to speak to? The main thing is I have until Friday to change my wages account so need to make a decision as soon as possible if I’m unable to keep the Barclays one. I think the original lady at Barclays didn’t really know the answer and fobbed me off as she presumed I would be going bankrupt through a company and they would tell me what to do about the bank. 

I just keep thinking it’s one month when things are up in the air and hopefully will settle down then. 

Would you just just call them once i have the confirmation or call again before and see if I get somebody more knowledgeable 

thanks again for all the advice 
Georgia 

mwarby

I don't know the specifics sorry. I would try contacting them again, maybe also worth trying twitter or similar

Samirish

I have a standard current account with Barclays (no overdraft) and went BR on 12 Feb 2020.  To this day the account has remained active, the OR did send a letter advising that there was no interest in the account so I presume they were happy to allow things to carry on as normal. 

george_112

Thanks for that, fingers crossed it’ll go smoothly and I’ll be able to keep that account running. Daft question but how do I know when the account is frozen? Does it say on my online banking? 

Samirish

My Nationwide account was (temporarily) frozen and I only found out when I went to pay for something and was unable 🤦🏻‍♀️.  When I went to online banking it just looked normal, but if I tried to move money between accounts it wouldn't let me.  I rang them, and they asked for the OR letter to be faxed to them...FAXED...they wouldn't accept any other form of communication!  I finally tracked down a fax machine and the account was immediately unfrozen 😁

george_112

I didn’t think anyone actually used faxes anymore! 

george_112

mwarby said:

I don't know the specifics sorry. I would try contacting them again, maybe also worth trying twitter or similar

I spoke with Barclays on messenger and they have said once the insolvency is processed I can get my account downgraded to a basic by using video banking and this will avoid me having to travel to a branch. So I will try this but it’s seems the information you get differs with who you speak to

luvchocolate

Bank staff are very ill informed about BR. 
You can mention the bank account to the examiner on the first call. 

Samirish

george_112 said:

I didn’t think anyone actually used faxes anymore! 

That's exactly what I said to the lovely person at Nationwide, my actual words were "sorry, have I woken up in the 1980's"...rediculous 🤷🏻‍♀️