The Unbanked: A national disgrace

Former_MSE_Natasha
Former_MSE_Natasha Posts: 672 Forumite
in Martin's blogs & appearances & MSE in the news
This is the discussion to link on the back of Martin's "The Unbanked: A national disgrace" blog. Please read the blog first, as this discussion follows it.
Read Martin's 'The Unbanked: A national disgrace' Blog.
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Comments

  • MarkVarley
    MarkVarley Posts: 14 Forumite
    I needed a basic bank account a few years ago and went to NatWest, explained that I have a poor credit rating and they offered me their basic account, no problem (after a couple of years they stung me badly with bank charges so I jumped ship with a better credit rating to Smile).
  • lardaholics_anonymous
    lardaholics_anonymous Posts: 13 Forumite
    Now we own Northern Rock, maybe there is an opportunity here to help people out, and get a foot on the banking ladder, and make a start on improving their credit rating.
  • nelly_2
    nelly_2 Posts: 17,863 Forumite
    First Post Combo Breaker
    because thes basic bank account have no credit facility what so ever it means the bank cant make any money on them so its hardly a suprise they dont push them
  • mandymad
    mandymad Posts: 18 Forumite
    Northern Rock has just been nationalised, so can people who couldn't get a bank account before, now get one??
  • safari_2
    safari_2 Posts: 20 Forumite
    IIRC the Government pushed basic bank accounts because it wanted to pay all benefits electronically.

    This should be a win-win-win situation. The government gets to distribute benefits more cheaply, the previously unbanked get to start building a financial history that's recognised by the credit reference agencies, and the banks get new customers, the best of whom they can upgrade to standard accounts and start to offer credit to.
    if i had known then what i know now
  • Quincejelly
    Quincejelly Posts: 6 Forumite
    Anyone who's interested in learning more about this please check out:

    http://www.toynbeehall.org.uk/page.asp?section=00010001000100030005&pagetitle=Financial+Inclusion

    Where there are links to lots of interesting research and info.
    ;) Once bitten, twice covered in tobasco.
    Mortgage as of 1.3.08 =£83,281 The countdown has begun
  • harryhound
    harryhound Posts: 2,662 Forumite
    Quincejelly wrote: »
    Anyone who's interested in learning more about this please check out:

    http://www.toynbeehall.org.uk/page.asp?section=00010001000100030005&pagetitle=Financial+Inclusion

    Where there are links to lots of interesting research and info.

    I think I have worked out that a POCA is a Post Office Card Account.
    What function does one of these allow ? (I once stood two down in the Q from an old boy getting out his pension, who read out his pin number to the rest of the room as he typed it in:rolleyes:).

    Another simple question: Why do so many traders not want to take Solo or Electron cards?

    Harry.
  • stonywoman
    stonywoman Posts: 2 Newbie
    I agree that everyone should be able to get a bank account if they want one, but I think we have to bear in mind that for some people a bank account isn't a necessity. My parents live very happily in Ireland without a bank account.

    They have a credit union account (a bit like a co-operative bank but without the usual facitlites you get with a bank account) which is where they deposit their savings and ask for a loan if they need to borrow. They do not have any credit cards, cheque books or switch cards but have never felt the need for them. Sometimes I look at me - financially savvy with my myriad of cards, accounts and Direct debits and I think it might be quite refreshing to go back to living like that ....
  • Quincejelly
    Quincejelly Posts: 6 Forumite
    harryhound wrote: »
    I think I have worked out that a POCA is a Post Office Card Account.
    What function does one of these allow ? (I once stood two down in the Q from an old boy getting out his pension, who read out his pin number to the rest of the room as he typed it in:rolleyes:).

    Another simple question: Why do so many traders not want to take Solo or Electron cards?

    Harry.

    A Post Office Card Account is a very limited account that only receives electronic payment of DWP benefits and that's it. You can't put any other money in. You can't have any other transfers or receive any other benefits into it. It doesn't accept direct debits or standing orders. The only way to take the money out is in the Post Office with the card.

    They are used by people who have very little ID and no credit history as the only thing you need to open one is a letter from the Job Centre confirming your right to receive benefits and asking the Post Office to open the account.

    They may seem to be of little use to the recipients and more use to the government (to cut costs and reduce benefit theft and fraud etc). But it has some use because it is a secure place to store the benefits so they can take them out in smaller amounts as necessary. In other words your old fella doesn't have to be leaving the office every week on the same day at a predictable time with all his money for the week in his hand waiting to get robbed.:(
    ;) Once bitten, twice covered in tobasco.
    Mortgage as of 1.3.08 =£83,281 The countdown has begun
  • dfordgirl
    dfordgirl Posts: 1 Newbie
    Lloyds Tsb offers a cash acc that accepts dds and standing orders and you can deposit chqs or cash other than benefits, it is for those that are less creditworthy but now comes with a debit card to get access to your money in some shops, by reading blog seems that best one around!
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