Opening Bank Account pre-BR

MammaCas

Dear all

We are considering BR and wondering if someone could help regarding the following question...

If we open a Co-op cashminder account now (and set up all D/D's and wages payments) will the account get closed by the bank/OR?

Is it better to wait until after BR to do this? Just worried because our current bank has an overdraft they could 'call in' at anytime and we are also incurring charges that we could do without whilst trying to save up for BR fees and deposit/rent.

Many thanks

MC

squirrel_pigeon

Co-op SHOULD let you keep it. The Official Receiver will have the account frozen for a few days (just to check you're not stashing thousands in there) but then it should be reopened as normal.

MammaCas

Thanks SP

Its the SHOULD that worries me...... :eek:

I may just wait so I can be sure, but I have a week off next week and thought it would be ideal time to get everything transferred across.

fermi

If the Co-op are aware that you are going bankrupt and the OR is quick in informing them they have no interest in the account, then many people find that the account is never frozen (even for a short period).

But it is always a bit of 'pot-luck'. :rolleyes:

If possible make sure that it is made very clear on the forms and in your initial chat with the OR that the account is a basic one that you wish to remain open, and so it is important that they write to/fax the Co-op ASAP.

If in doubt it is still advisable to open the account post BR if practical.

squirrel_pigeon

Personally I would go with the Co-op. But I may be a bit biased cos I'm in the process of opening an account there just in case my Tax Credits get stopped in April, wiping out my surplus. Am fully prepared for the possibility that I may have to go BR and am just trying to get as much sorted as possible.

MammaCas

fermi wrote: »

If the Co-op are aware that you are going bankrupt and the OR is quick in informing them they have no interest in the account, then many people find that the account is never frozen (even for a short period).

But it is always a bit of 'pot-luck'. :rolleyes:

If possible make sure that it is made very clear on the forms and in your initial chat with the OR that the account is a basic one that you wish to remain open, and so it is important that they write to/fax the Co-op ASAP.

If in doubt it is still advisable to open the account post BR if practical.

Thanks Fermi

I always find your posts v. easy to understand and full of relevant info.

I'm not really concerned about the account being frozen for a while, it's the fact that it may be closed by the co-op that worries me. I think I'll hang on and open the account after BR although I could REALLY do with getting rid of my current account now to stop charges etc.

Thanks again MC

wherediditallgo

Hi MC,

If you're not going to be going BR for a while, you could try opening a current account with another provider & transferring your bills etc to that one & reduce your charges that way. The account will be frozen temporarily when you go BR, but that won't matter so much as you won't be intending to keep the account anyway. You could then open a Co-op account straight after going BR, which you'd then get to keep without any problems. In the last year before I went BR, I opened a new bank account to be able to control what was happening to my money (the first bank had been behaving like my account was their source of funds :mad:), & then opened the Co-op one the same afternoon I went BR. I do think it's a good decision to leave opening the Co-op account until after you go BR - you're going to need it, & though there are many people who've been able to keep their pre-BR accounts open, there are also many who have had their accounts frozen & have then had problems sorting out their finances.

MammaCas

wherediditallgo wrote: »

Hi MC,

If you're not going to be going BR for a while, you could try opening a current account with another provider & transferring your bills etc to that one & reduce your charges that way. The account will be frozen temporarily when you go BR, but that won't matter so much as you won't be intending to keep the account anyway. You could then open a Co-op account straight after going BR, which you'd then get to keep without any problems. In the last year before I went BR, I opened a new bank account to be able to control what was happening to my money (the first bank had been behaving like my account was their source of funds :mad:), & then opened the Co-op one the same afternoon I went BR. I do think it's a good decision to leave opening the Co-op account until after you go BR - you're going to need it, & though there are many people who've been able to keep their pre-BR accounts open, there are also many who have had their accounts frozen & have then had problems sorting out their finances.

Thanks WDIAG

Was just thinking that myself. I might try for a basic Nat west account with solo card (wonder if they do a credit check for that account?).

Cue the Nationwide sending nasty letters about my overdraft......the minute my wages stop going in there.

Scarlett.1974

I have the basic nat west account (the 'Step' account) and had no problems opening it (and as you know my credit is so poor right now I wouldn't even get a pint of milk from the local shop on tick ), it was quick and easy (applied on line) and I had all my paperwork and card, pin etc.... through within a couple of weeks, and this was during the postal strikes, so would probably be quicker than that for you

fermi

I'm afraid that Nastywest will normally (99%) close the 'Step' when/if you go BR.

Occasional the branch staff promise that this won't happen, but they are later overruled by the head office and the account is closed anyway.

fermi

From: http://forums.moneysavingexpert.com/showthread.html?t=503628

disco wrote: »

Natwest are nothing but a bunch of wasters..2 months after my friend went bankrup they decide to close her account without warning..Even the branch manager said she could keep the account open but idiotic office staff refused to keep it open..

Natwest was not on the list of creditores and before opening the account she was told no problem,,All direct debits and benefits are now paid in and out of this account with no problems until now..

She just come off the phone from some rude staff who basicly told her she wont find a bank that will give her an account in the UK..I am livid but powerless to do anything officially but they will be reciving an email from myself as i bank with them also..

My friend has just come out of hospital after major surgery and cant even go out to open a new account and obviously this is urgent as money due to be paid in and out,,S o i am giving Natwest a bad name where ever i can and they can sue me if they like...

Rant over,,cup of tea time i think..The moral of this story dont beleive a word Natwest tells you,,What the future holds for these people we deal with is not known but i hope a situation arises that puts them in a similar position..

disco wrote: »

The local branch manageress is phoning back in the morning and she know nothing of this afternoons outcome so we shall see what she can do, In the mean time i have emailed the Chief executive and awaiting a reply asking for him to intrevene in this matter..

The rude male customer service staff at Bristol slammed this site after mentioning about people having basic step accounts after bankruptcy, just kept saying its the bank policy not to give undishcharged bankrupts accounts..

I am hopefull of him getting a dressing down after the way he spoke..All this with a bank that was not even involved in any part of bankruptcy..Ha ha.. Natwest, I shall be closing my account soon with them after a strong letter of complaint.. More tea now...
Thanks for your replies..

disco wrote: »

Update on this Natwest fiasco..

Natwest manageress phones this morning saying nothing she can do Bristol have made a decision sorry.

Phoned OR he said go to bank at certain time and get them to phone me, you will have your money this afternoon...Yippeee..

Struggled to get her to the bank even going against surgeons wishes and met more rude people,, Attitude had changed from yesterday..Kept her waiting for 20 mins, said it doesnt matter if i speak to OR it wont change the situation,She agreed to phone OR..Came back from phone call and said sorry cant give you your money until a letter from OR..

Phoned OR there and then and he said sorry i cant overule the bank..What the hell did he send her for then and why say you will have your money this afternoon... To me another waste of time..

Now because disability benefit was supposed to be paid in this account today,, which it was but because they have closed the account its not showing so the benefits people cant do anything until the bank sends it back..As if they are going to do this quickly..

So no money not even disability money for up to a fortnight thats the length of time this will take.. I will say again Natwest was not involved with this bankruptcy at all.. No private room to discuss this so out in the open with my friend crying and explaining she has no access to her money and what is hse going to do for a fortnight.. Cold callous manageress pretends to be sorry,, lets hope the chief executive answers the email on wednesday if not i shall be sending more emails than he can handle on this matter..

Thanks Natwest for being so helpfull...LOL...