Adult with addiction problems and banking

Molly2020

I’m hoping that someone on the forum will be able to give me some advice.
To explain as briefly as I can I’ll put the problem in short sentences. 

Adult with chronic addiction needs a bank account that will NOT under any circumstances grant an overdraft .
An account that does not allow cash withdrawals.
An account that limits daily spending.
Thank you

fwor

I think you'll find it difficult to get an account that meets all three requirements. The first two are easy, in that fixed-term saving accounts would do both, but the third requirement is the tricky one - it's not really within any bank's remit to control "spending" from an account in that way - partly because there is no clear definition of what is "spending" and what is not.

Have you sought advice about the possibility of powers of attorney, deputy and appointee, and the use of the Court of Protection? Each of these have different characteristics, and will depend upon whether, for example, the addiction could be considered severe enough that the person does not have mental capacity - even if only temporarily.

There is some basic info about the various types of power here: https://www.gov.uk/browse/births-deaths-marriages/lasting-power-attorney

IMO the worry would be that if you try to restrict access to money without addressing the addiction itself, it may drive the person concerned to find money elsewhere, in ways that may harm them or others...

PloughmansLunch

I can't think of any current accounts that would prevent cash withdrawals. Co-op cashminder doesn't allow overdrafts but doesn't tick the other boxes.

From what I've read in various threads here, Barclays are unlikely to offer an overdraft. If you have an account and are supervising someone's access you can add an additional debit card for £3 with various spending restrictions on. Might be worth a look?
https://www.barclays.co.uk/ways-to-bank/authorised-users

Perksy5

Hi, Barclays have options for you to turn off cash withdrawals or even just lower them and set daily spend limits under card management.
You could either manage this via the app and delete the app if you think you're at risk of changing it or instead of having the app you can ring up to have these changes implemented. 

P.S you can also block or turn off spending to certain spending categories e.g gambling (with a 48hr delay in reactivating to prevent any compulsive decisions)

phillw

Perksy5 said:

Hi, Barclays have options for you to turn off cash withdrawals or even just lower them and set daily spend limits under card management.
You could either manage this via the app and delete the app if you think you're at risk of changing it or instead of having the app you can ring up to have these changes implemented. 

I assumed it's an account for someone else, the OP's partner for example. So they want an account that under no circumstances will the bank do business with the account holder. Including if the account holder phones up to remove daily limits. Tricky situation, as if true then you need to be careful to avoid accusations of financial abuse.

If someone wants to control their own spending then chase won't allow an overdraft to anyone, so they are a good start. Giving all money to someone you trust, so you have to ask them for money whenever you spend it is the best option IMO. But I'd get an agreement in writing to avoid financial abuse issues.

Stopping cash withdrawals isn't any good regardless as a determined addict will say they need money for lunch, buy someone else's lunch and get them to give them the cash.

enthusiasticsaver

It sounds like this particular person should not have a bank account and it should be operated with a power of attorney.  You can get bank accounts with no overdraft facility and removing a debit card will obviously stop someone taking cash out but how is the account holder to use it?  Is it just for direct debits/standing orders? 

I don't think it is possible to set a daily spend limit on bank accounts as virtually no one would ask for that. 

phillw

enthusiasticsaver said:

I don't think it is possible to set a daily spend limit on bank accounts as virtually no one would ask for that. 

You could set up a daily standing order to transfer their daily allowance into an account with no overdraft.
But unless they were co-operative then their wages being paid in would be an issue.

Perksy5

enthusiasticsaver said:

I don't think it is possible to set a daily spend limit on bank accounts as virtually no one would ask for that. 

Barclays do offer this as I said via the app