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  • MarkVarley
    • #2
    • 4th Mar 08, 3:22 PM
    • #2
    • 4th Mar 08, 3:22 PM
    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
    • By lardaholics anonymous 4th Mar 08, 5:50 PM
    • 13 Posts
    • 10 Thanks
    lardaholics anonymous
    • #3
    • 4th Mar 08, 5:50 PM
    Now we own Northern Rock
    • #3
    • 4th Mar 08, 5:50 PM
    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
    • #4
    • 5th Mar 08, 6:01 AM
    • #4
    • 5th Mar 08, 6:01 AM
    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
    • By mandymad 5th Mar 08, 6:45 AM
    • 18 Posts
    • 4 Thanks
    mandymad
    • #5
    • 5th Mar 08, 6:45 AM
    • #5
    • 5th Mar 08, 6:45 AM
    Northern Rock has just been nationalised, so can people who couldn't get a bank account before, now get one??
  • safari
    • #6
    • 5th Mar 08, 8:29 AM
    • #6
    • 5th Mar 08, 8:29 AM
    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
    • #7
    • 5th Mar 08, 10:21 AM
    • #7
    • 5th Mar 08, 10:21 AM
    Anyone who's interested in learning more about this please check out:

    http://www.toynbeehall.org.uk/page.asp?section=00010001000100030005&pagetitle=Fi nancial+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
    • #8
    • 5th Mar 08, 11:07 AM
    • #8
    • 5th Mar 08, 11:07 AM
    Anyone who's interested in learning more about this please check out:

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

    Where there are links to lots of interesting research and info.
    Originally posted by Quincejelly
    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
    • #9
    • 5th Mar 08, 12:42 PM
    • #9
    • 5th Mar 08, 12:42 PM
    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
    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.
    Originally posted by harryhound
    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
  • d/fordgirl
    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!
  • Happy Girl
    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
    getting a bank account
    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
    Vicious circle
    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
    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
    • By EmehEm2005 6th Mar 08, 6:23 PM
    • 104 Posts
    • 56 Thanks
    EmehEm2005
    The Unbanked
    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
    • By PROLIANT 6th Mar 08, 6:31 PM
    • 6,045 Posts
    • 5,599 Thanks
    PROLIANT
    LLoyds TSB
    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.

  • 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
    • MSE Martin
    • By MSE Martin 6th Mar 08, 9:10 PM
    • 8,115 Posts
    • 42,285 Thanks
    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 [/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
    Martin Lewis, Money Saving Expert.
    Please note, answers don't constitute financial advice, it is based on generalised journalistic research. Always ensure any decision is made with regards to your own individual circumstance.

    Don't miss out on urgent MoneySaving, get my weekly e-mail at www.moneysavingexpert.com/tips.

    Debt-Free Wannabee Official Nerd Club: (Honorary) Members number 000
  • harryhound

    I also feel sorry for poorer people that can't afford internet access,
    Originally posted by krazykidskate
    It is free in the local library - my local library has a plaque thanking the following for supplying the PC's:

    en.wikipedia.org/wiki/Bill_and_Melinda_Gates_Foundation

    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.
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