The Unbanked: A national disgrace

Happy_Girl_2

Can I add Abbey to the list of banks who were very good in offering a basic account straightaway - full online access, a cheque book and an electron card was provided too

deecee1

I work with people who are homeless and it is a disgrace how they are treated by the benefits system and the banks. They are told to open bank accounts to enable benefits to be paid in as the post office accounts are now being withdrawn(they were useless anyway!). However they often have no history of any accounts, addresses etc. identification required by banks to prevent money laundering is understandably tight but these people cant afford to get their birth certificates let alone the cost of a passport. the DWP will not give CCG (community care grants) to purchase passports and birth certs so those requiring to open an account need to get a social fund loan which they have to pay back from their 45 quid a week. (If they get it at all that is). The poorest people in our society are being excluded from banks and building societies and being made to pay by the charges levied by companies if you cannot pay by direct debit or even worse those utility companies who put in pre- payment meters into peoples first tenancies and then charge them more for their electricity and gas through standing charges for having the meter! It outrages me so much! Recently a new tenant was quoted £300.00 as the charge to get a pre payment meter removed! If they had a bank account at least they could save money by paying by d/d like the rest of us once they had a year of the blasted pre pay meter. People wonder why others give up tenancies!!

poeticpip

I have a disabled friend who is on benefits and DLA. It's an absolute nightmare for her not having a bank account. She has already been declared bankrupt and is struggling to keep solvent. Unfortunately she loves spending money. She recently bought a new bed, which cost £400 but couldn't afford it, so took out a loan (a crazy thing to do in her situation) I couldn't believe it when she told me that the loan cost £272 (that's well over 50% of the cost of the bed) bringing the total to £672. She won't be able to repay that any time soon, it will take ages. After that she went and ordered a new sofa for £420. She also has an outstanding phone bill of £170 so has been cut off and can only get incoming calls. She won't get out of this mess unless someone gives her debt counselling and some willpower to stop spending.

FairyElephant_2

The Post Office Account is a great way to get people's benefits to them.....until they close down all your local Post Offices which is what they are trying to do to us!

It took us long enough to get my dad, who has alzheimers, to understand how to get his pension out with this plastic card instead of his pension book when he was 'forced' to switch....if the Post Office closure goes ahead I have no idea how he will manage, as he can't get to another one on his own and would never be able to cope with telephone banking even if we could get him to use a bank (he doesn't understand or trust them!).

EmehEm2005

Quote: "To get these basic bank accounts, (with the notable and commendable exceptions of Barclays and the Co-Op which I hear do it better) you need to actually ask for the specific forms."

Please note that the Co-op are the bankers for Sheffield Credit Union (Credit Unions know all about banks and their current accounts) and Barclays Bank have leant personnel to help with the formation and running of the Sheffield Credit Union.

http://www.fisy1.co.uk/Credit%20union%20pages/Credit%20Union.htm

Mike

Member Sheffield Credit Union

PROLIANT

I have a LLoyds TSB Basic account aka the cash account and comes with a proper VISA debit card, no overdraft or cheque book but they record the monthly acount status with experian, equifax and call credit CRA's, it gives you a nice [0] if you manage the account well and it is reported as a normal current account and not as a restricted account which will boost your credit rating.

:T

krazykidskate

It doesn't seem right that people are penalised for not having accounts and made to pay more on their bills because they can't pay via direct debit etc.

I also feel sorry for poorer people that can't afford internet access, they miss out on savings on sites like this and debt support when they probably would benefit most. They can't benefit from online shopping when they probably struggle carrying all their shopping on buses, when they could have it delivered to the door with £10 off code.
They get told in TV adverts that they need digital TV and to find out more go to the website blahdedah.com but the advertisers don't realise that people without digital TV by now probably haven't got internet either :rolleyes:

Sorry I've gone a bit off topic here but come on Martin take your MSE advice to those that need it most. I suppose It Pays To Watch is a start :T

MSE_Martin

[quote}Sorry I've gone a bit off topic here but come on Martin take your MSE advice to those that need it most. I suppose It Pays To Watch is a start :T[/quote]

Doing my best. This site - IPTWatch, GMTV, Radio 1, News of the World; all reaching new audiences which stretch right across the board... then again - we all have a responsibility to try and help; hopefully those who use this site can pass the info to those who can't

martin

harryhound

krazykidskate wrote: »

I also feel sorry for poorer people that can't afford internet access,

It is free in the local library - my local library has a plaque thanking the following for supplying the PC's:

[SIZE=-1]en.wikipedia.org/wiki/Bill_and_Melinda_Gates_Foundation

[/SIZE][SIZE=-1]I used to work with a self employed bloke who got paid by cheque and was then down to "Cash Converters" - he explained that the commission was a lot less than the amount the taxman would take off him. So not all the un-banked are victims of the system.

Some people are in a financial mess because they will insist in living for the day.
[/SIZE][SIZE=-1][/SIZE]

PROLIANT

But he would still have to pay the tax man else he would be done for tax evaison no?