DRO and bank accounts

LittleOwl7

Hello,

I am likely about to go through the process of setting up a DRO. I have spoken to Step Change and have done a lot of research, including reading through many of the posts on this forum, so I'm confident that I'm fairly well informed about what I'm getting into.

One area that I'm still a little concerned about is bank accounts. I have a current account with Lloyds at the moment, however I also have a credit card with Lloyds that will be included in the DRO, so I understand this account will likely be frozen / closed and that I will need to set up a new basic bank account not linked to any of my creditors.

I was just hoping for some advice and recommendations on the best one to go with? I have credit with Lloyds / Nationwide / Virgin Money so I understand they would be out of the equation. Ideally I'd like to be able to set up a basic online saver too, purely as I find this useful for budgeting if I can put away money seperately for things like MOT etc.

Thank you

1977dave

Nationwide and Co op bank are the most DRO friendly banks, but as you have debt with Nationwide, I'd recommend the Co op and their basic account, otherwise Barclays and their basic account

rachel6188

Step change recommended Barclays to us when we did our DRO x

LittleOwl7

Thank you both for your replies, that's really helpful.

I am a little confused as I spoke to Step Change last night and they seemed to think I wouldn't need to change my bank account. Everything I've read online seems to suggest the opposite so I'm not sure what the best thing to do is.

1977dave

Best thing to do is have a bank account that isn't linked to any organisation that will be a creditor under your DRO

So for example if Lloyd's will be a creditor then stay away from Halifax as part of the same group 

I've been discharged from my DRO for 10 months now, I kept my full account with Santander as I didn't owe them any money but opened Nationwide and Barclays as backups

You could try a basic Santander account if they turn you down for a full account, but my money would still be on co op first then barclays second

MalMonroe

Hi, when I had my DRO, Stepchange recommended that I change bank accounts and that was something I was very concerned about. They said it was best to switch but that I'd only be able to get a basic account. I applied to Co-op (they recommended three to me, Co-op, Nationwide and Barclays). I was already overdrawn with Barclays and that was part of my DRO so I plumped for Co-op. I was accepted for their basic account without any problems and never had any trouble with them. 

I'm now with Nationwide - also very good but you already have dealings with them. I can recommend Co-op, definitely.

LittleOwl7

Thanks both, sounds like maybe a co-op account is the best way to go to be on the safe side!