Basic accounts 'failing poorest'

Fedz

Basic accounts 'failing poorest'

Basic bank accounts fail to meet the needs of half the UK's poorest people, the National Consumer Council says.

Research carried out for the NCC reveals that those with such accounts are more likely to get into financial problems than those without them.

The accounts, the survey of 1,520 people on low incomes said, fail to match the need of the poorest to juggle their finances from week to week.

As a result, half of those on low incomes still prefer to use only cash.

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Tony_H_3

Another quote from this article:

"Provided there is sufficient money on the account and the debit is in accordance with the customer's instructions, the bank will pay them as they are received, whether this is weekly, monthly or any other frequency."

Personally I didn't realise DD's could be paid at intervals other than 1 month / Quarterly. Did anyone else realise they could be paid at other intervals?

I think this is very important knowledge for those whom receive benefits, this would reduce any potential charges they might receive due to insufficient funds based on the timings when they receive their benefits.

Mark7799

I always thought that DDs were claimed by the beneficiary whenever they wanted to (providing they gave due notice to the account holders) Presumably companies don't want to claim more often than monthly as it will costs them more to do so.

Fedz

According to one of my Halifax online banking DDs the Frequency is variable (even though it's taken monthly as advised/agreed by the originator/beneficiary).

So it would seem weekly DDs are possible but this would be dictated by the originator/beneficiary supporting weekly collections.

Companies always tell us to use DD as it's most cost effective but you never see weekly DD maybe because companies usually run monthly due to salaries (not everyone).

MarkyMarkD

I'm afraid I never thought anything BUT that DDs could be taken at any frequency - and I'm surprised anyone didn't realise this. They can be taken on any specific date in the month the originator requires, so there's no reason why it can't be multiple times in the month.

Some savings account allow you to fund them via DD - so again, obviously it can be on any frequency.

The NCC article, and press release, and campaign, is a lot of tosh. The point isn't that the banks need to do anything to enable daily/weekly/fortnightly/whatever DDs - that's the choice of the originators. If gas/electricity/water companies want to serve their less well-off customers, it's THEM who should be allowing weekly DDs.

But in reality, the idea of weekly DDs is hopeless for a large proportion of the less well-off, as that's just 52 rejected DD charges a year rather than 12.

CopperPlate_2

And think of all the "Returned Payment" charges the banks would end up charging the 'less well off' holders of the basic bank accounts! Wouldn't look too good on the front page of the local rag for them, penalising those who the government believe can ill afford it.

CP

Fedz

The people I know on benefits smoke, have a car, go on holiday ...etc - I work 48 hrs a-week and they get better than me: regular and reliable weekly money, council tax paid, rent paid, grants and discount on this, that and the other ... I wonder!

frepol

Fedz wrote:

The people I know on benefits smoke, have a car, go on holiday ...etc - I work 48 hrs a-week and they get better than me: regular and reliable weekly money, council tax paid, rent paid, grants and discount on this, that and the other ... I wonder!

Leader writer for the Daily Mail?

CopperPlate_2

Fedz wrote:

The people I know on benefits smoke, have a car, go on holiday ...etc - I work 48 hrs a-week and they get better than me: regular and reliable weekly money, council tax paid, rent paid, grants and discount on this, that and the other ... I wonder!

Don't start me off on one...

But it's the "redistribution of wealth" society that we live in. Hmmmm, funny how none of that "wealth" seems to be getting distributed in my direction. Very definitely a one-way flow...

CP