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  • FIRST POST
    • MSE Guy
    • By MSE Guy 12th Jul 10, 9:12 AM
    • 1,628Posts
    • 1,255Thanks
    MSE Guy
    MSE News: Banks urged to offer basic accounts to bankrupts
    • #1
    • 12th Jul 10, 9:12 AM
    MSE News: Banks urged to offer basic accounts to bankrupts 12th Jul 10 at 9:12 AM
    This is the discussion thread for the following MSE News Story:

    "Citizens Advice is calling on current account providers to treat people in severe debt fairly ..."

Page 1
    • DrScotsman
    • By DrScotsman 12th Jul 10, 10:54 AM
    • 980 Posts
    • 556 Thanks
    DrScotsman
    • #2
    • 12th Jul 10, 10:54 AM
    • #2
    • 12th Jul 10, 10:54 AM
    Charity Citizens Advice says the majority of banks refuse to let undischarged bankrupts even open a basic bank account, that does not have an overdraft facility, despite no legal justification for this.
    Huh? I don't get this line. Surely the legal justification is that a business has the right to refuse service to anyone.

    I'm not saying banks don't have a social obligation to offer basic bank accounts to bankrupts, but saying there's no legal justification for them to refuse is pants to be honest.
    • Lokolo
    • By Lokolo 12th Jul 10, 10:57 AM
    • 20,145 Posts
    • 15,310 Thanks
    Lokolo
    • #3
    • 12th Jul 10, 10:57 AM
    • #3
    • 12th Jul 10, 10:57 AM
    Has this come up before? Pretty sure there was something about people not getting basic accounts or something.
    • Alpine Star
    • By Alpine Star 12th Jul 10, 11:25 AM
    • 1,259 Posts
    • 611 Thanks
    Alpine Star
    • #4
    • 12th Jul 10, 11:25 AM
    • #4
    • 12th Jul 10, 11:25 AM
    Huh? I don't get this line. Surely the legal justification is that a business has the right to refuse service to anyone.

    I'm not saying banks don't have a social obligation to offer basic bank accounts to bankrupts, but saying there's no legal justification for them to refuse is pants to be honest.
    Originally posted by DrScotsman
    There was a move by the Labour government to make it a legal obligation before the election but I don't know what's happened to it http://www.bbc.co.uk/blogs/thereporters/robertpeston/2010/03/a_legal_right_to_a_bank_accoun.html

    The fact is that banks cannot be compared to any other business as the entire nation guarantees their very existence.
    • Bosie
    • By Bosie 12th Jul 10, 11:32 AM
    • 1,225 Posts
    • 553 Thanks
    Bosie
    • #5
    • 12th Jul 10, 11:32 AM
    • #5
    • 12th Jul 10, 11:32 AM
    What comes to my mind is that the public had to bail certain banks out from going bust
    • plumber2009
    • By plumber2009 12th Jul 10, 11:43 AM
    • 308 Posts
    • 305 Thanks
    plumber2009
    • #6
    • 12th Jul 10, 11:43 AM
    • #6
    • 12th Jul 10, 11:43 AM
    Im currently going down the BR route due to job loss and I have fought tooth and nail to avoid it.
    People need access to a basic account for their day to day business.
    I cannot see why banks dont offer these accounts more often because you cannot go overdrawn with a basic account and you cannot borrow through any overdraft/loan or credit card facility. Also due to having no debt the bank should make some money on the intrest.
    When an iduvidual has been released from BR, he/she will need a way to rebuild their credit history and a basic account is the first step. It will take a very long time to recover from a BR and other altenatives should be considered before taking this step.
    • stclair
    • By stclair 12th Jul 10, 11:47 AM
    • 6,529 Posts
    • 3,467 Thanks
    stclair
    • #7
    • 12th Jul 10, 11:47 AM
    • #7
    • 12th Jul 10, 11:47 AM
    Im currently going down the BR route due to job loss and I have fought tooth and nail to avoid it.
    People need access to a basic account for their day to day business.
    I cannot see why banks dont offer these accounts more often because you cannot go overdrawn with a basic account and you cannot borrow through any overdraft/loan or credit card facility. Also due to having no debt the bank should make some money on the intrest.
    When an iduvidual has been released from BR, he/she will need a way to rebuild their credit history and a basic account is the first step. It will take a very long time to recover from a BR and other altenatives should be considered before taking this step.
    Originally posted by plumber2009
    You can go overdrawn and be charged for example if a direct debit or standing order is returned unpaid.

    Which then inturn takes you into an unauthorised overdraft.
    Im an ex employee RBS Group
    However Any Opinion Given On MSE Is Strictly My Own
    • plumber2009
    • By plumber2009 12th Jul 10, 3:47 PM
    • 308 Posts
    • 305 Thanks
    plumber2009
    • #8
    • 12th Jul 10, 3:47 PM
    • #8
    • 12th Jul 10, 3:47 PM
    You can go overdrawn and be charged for example if a direct debit or standing order is returned unpaid.

    Which then inturn takes you into an unauthorised overdraft.
    Originally posted by stclair

    This is a valid point for all to remember.

    They will charge you fees but will not authorise any payment. A typical bank will charge 25.00 per unpaid item plus daily intrest.

    I was offered a "thinkbank bank account" a few years back when i was on a DMP. The account was 8.00 per month but you would not get charged any fees if your account went in the red and the payment would be processed.
    Last edited by plumber2009; 12-07-2010 at 3:51 PM.
    • debtinfo
    • By debtinfo 12th Jul 10, 8:01 PM
    • 6,950 Posts
    • 8,525 Thanks
    debtinfo
    • #9
    • 12th Jul 10, 8:01 PM
    • #9
    • 12th Jul 10, 8:01 PM
    Huh? I don't get this line. Surely the legal justification is that a business has the right to refuse service to anyone.

    I'm not saying banks don't have a social obligation to offer basic bank accounts to bankrupts, but saying there's no legal justification for them to refuse is pants to be honest.
    Originally posted by DrScotsman
    There are certain companies that have an obligation to provide a universal service, the question is, should banking be one of them
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