Bank account

Leedsguy21

Hi everyone I’m applying for a dro, and very worried about my bank ( Halifax) I really don’t want to loose my account and need one for my benefits to go in, I’ve been told different things from it will be fine to no we will have to close it, I owe Halifax absolute nothing and don’t have an overdraft so not sure why I can’t keep it. I’ve even called insolvency and they said if it’s not included it will be ok but Halifax say they will close it ? Does anyone have a yes or no answer ? Thanks 

[Deleted User]

Hi

When I became bankrupt in 2020 I was banking with Santander, nothing owed to them and no overdraft.  They closed my account without any discussion with me.  The OR sent them a letter to say he had no interest in the account but it made no difference.  I don't know if a DRO is seen as the same by banks.

Your best bet might be to open a basic bank account elsewhere and arrange for your benefits to be paid into it.

Leedsguy21

I would do that but don’t want that to be closed either I’m going to go into Halifax tomorrow I need a straight answer ha 

[Deleted User]

If you open a basic bank account it won't be closed, unless it's part of a group you owe money to.

Good luck with the Halifax tomorrow.

Leedsguy21

I just don’t understand what the difference is ? You still get a debit card with a basic account and I don’t have a overdraft are direct debits aloud from a basic account ?

[Deleted User]

There's not much difference. tbh.  Yes, you can do DD's and standing orders etc.  The only difference I've come across is I can't enable Google Pay through my phone for contactless payments, I have to use the actual card.  Big deal!

JCS1

Halifax used to close a bank account if you want Bankrupt, and also send a letter saying they didn't want any business in future.  not sure what their stance is on DRO's.

I also suspect you'll find it is not something the branch staff will be able to answer.

Leedsguy21

I will go and open a basic account just to be safe then if my currant account is froze at least I’ve got an account fingers crossed it will be ok 

MrFrugalFever

Leedsguy21 said:

I will go and open a basic account just to be safe then if my currant account is froze at least I’ve got an account fingers crossed it will be ok 

This is very sensible. Pre-paid cards aren’t also starting to offer direct debit services.

sourcrates

Some banks are insolvency friendly, others are not.

Those that are include Lloyds/Monzo/Nationwide and Coop.

RauHughes

sourcrates said:

Some banks are insolvency friendly, others are not.

Those that are include Lloyds/Monzo/Nationwide and Coop.

100% this. Halifax are a nightmare if they get wind of any form of insolvency. Open a Nationwide flexbasic account before your application and you won't have any issues