Lowell debt close to being statute barred HELP!

Kim_13

Try one of the banks who don't carry out a hard search - Chase, Starling or Monzo. These also don't tend to have switching bonuses so you wouldn't be locking yourself out of future offers. 

First Direct are known for being picky so would not have been near the top of the list to try with a default. Don't try HSBC as they are the same company, unless you are allowed to apply directly for a basic account  (some providers will only offer them if you first fail a credit check for their standard account.)

MSE's article on basic bank accounts is here: https://www.moneysavingexpert.com/banking/basic-bank-accounts/

Fluffyclouds87

Thanks kim_13 
I have only ever been with Lloyds so I don't really know what im doing thanks for the advice. I wouldnt of tried first direct if I'd known 🤦🏼‍♀️ 
They just poped up while searching as being a good bank. 

RAS

Hi, you need to make sure you only apply for a new basic bank account. The whole point of those is that they do a soft search. That means they only require proof of identity and address, so a recent bill. When I set one up, they checked I was on the electoral roll and didn't even want the bill.

Looking at that article, Co-op Cashminder and Santander's Basic are the ones to go for if you want a branch. Other people use Starling or Monzo which are on line only.

It's important you don't try and switch accounts because that transfers all your DDs to creditors as well.

If you look at any other bank, do not apply for anything that just says "Current account" or offers an overdraft. 

Fluffyclouds87

Hi Ras thanks for the advice. 

Please can you explain why I shouldn't switch? I thought that's what I was supposed to do to insure all my direct debits carry on going out and my wages going in? How would I do it otherwise? 

RAS

You need to make sure your new account has no connections to the old one. If you have paid debts by DD, then those will continue to be paid out of your new account if you switch.

You don't actually want Lloyds to know about your new account anyway.

So set it up with a minimum payment in.

Then find out the date by which your payroll need notice of the new account into which your salary is paid. Give them lots of notice. 

You'll need the details of your CT, utilities and media accounts before you do that. Work out which will be paid before your next pay day and concentrate on giving the others details of your new account. Once your pay is in the new account set up the other DDs.

sourcrates

First Direct only offer one account, they don`t do basic accounts, hence why you were declined, you didn`t pass muster on this occasion.

Others have listed banks to try, Monzo is very quick to set up, a matter of minutes, Nationwide offer a basic account, as do COOP, there are lots to choose from.

If the only DD`s you have set up are for utilities etc, and not unsecured credit debts, then there is no reason why you can`t use the switching service, the only reason we advise against it is if you have payments to lenders set up, as they will be transferred over, and you don`t want that.

If that`s not the case then fine.

Fluffyclouds87

I only have one debt (the lloyds loan) all my other accounts are fine...have no missed payments or issues at all. I plan on keeping these accounts up to date and use them regularly... but thinking about it I dont have a direct debit set up for any of them and just pay each month once I'm paid.   

I get paid on the last working day of the month and the majority of my bills are set to go out on the first of each month bar a couple that go out at a later date (despite asking for them to be moved to the first)  I don't pay my ct by dd I just make an online payment so that one won't be an issue either.

My uc goes in on the 1st of every month too but I think there is an easy form in my account to change bank details. 

Thank you for explaining why not to switch because that is exactly what I had planned to do 🤦🏼‍♀️ 

Trying to think of the easiest and least stressful way to do this.... I have 2 weeks until anymore money is paid into my account is this realistically enough time to change my bank details with uc and work? 

I appreciate your help and I'm fully aware im a nightmare with all these questions. 

sourcrates

UC updates quickly from your online account, work should be the same.

RAS

Fluffyclouds87 said:

I only have one debt (the lloyds loan) all my other accounts are fine...have no missed payments or issues at all. I plan on keeping these accounts up to date and use them regularly... but thinking about it I dont have a direct debit set up for any of them and just pay each month once I'm paid.   

I get paid on the last working day of the month and the majority of my bills are set to go out on the first of each month bar a couple that go out at a later date (despite asking for them to be moved to the first)  I don't pay my ct by dd I just make an online payment so that one won't be an issue either.

My uc goes in on the 1st of every month too but I think there is an easy form in my account to change bank details. 

Thank you for explaining why not to switch because that is exactly what I had planned to do 🤦🏼‍♀️ 

Trying to think of the easiest and least stressful way to do this.... I have 2 weeks until anymore money is paid into my account is this realistically enough time to change my bank details with uc and work? 

I appreciate your help and I'm fully aware im a nightmare with all these questions. 

Err no....

The only stupid question is the one you didn't ask.

And we've all got in a pickle sometime because we didn't know we needed to get more information before we acted.

So it's important that when in doubt, you ask. 

And in a while you'll be answering queries here about the things you now know. We all started knowing almost nothing.

Fluffyclouds87

Thank you all! 

So I'm just in the process of opening a monzo account and I just want to double check it's okay to do the switching thing?