Thanks for that information about prepaid accounts. To be honest if I didnt have any of these I would have sunk. Secure Trust Bank allows direct debits and pays interest on the account and cashback on the cards all for £12.50 per month and no bounced direct debit fees which has helped with those companies that will not accept standing orders like tv licences and insurances. Barclays have got in contact with me regarding my accounts and they said that they would be looking into my concerns and lo and behold I got a letter a few days later to say that the other account that we hold with them will be treated the same way that it is their discretion whether they will pay an item and if they do so then it will incur a £30 charge.:mad2: So I am transfering our direct debits to Secure Trust Bank now even though it is not a business account for the time being.

Thankyou so much for your comments. I will investigate further into seeing if another bank will help us. At the moment our personal banking is done through pre paid credit card accounts. These accounts have been brilliant for purchasing supplies over the internet and phone as they can be topped up at our local shops. They cost a bit extra but when you take into account parking fees, time and fuel costs there is not much in it if anything. The splash card charges 30p per £10 but cash is instantly put on the card (shop opening hours 7am-8.30pm). Barclays closed my personal account back in 2009 also. Not a good year that one.

It would interest me but I would have to find a bank that would take us on and allow us to take card payments. I have been with HSBC who have closed our accounts along with Nat West so our track record does not help.

We have had this business account over 10 years now. At the beginning had a small overdraft of £250 it was increased to £10,000 at one stage. Paid it all off. Tried expanding business but unfortunately picked the wrong companies who took us for a ride also health deteriorated so things did not go to plan at all. Since 2009 we have carried on trading without any overdraft and no mercy at at going overdrawn maybe £30 at most until January last year.

We do not have an authorised overdraft facility and I have made enquiries into having one but been refused by customer services and my business manager. They say it is the way my account is run? The limit was £1000 then £1500 then £1000 that the account was allowed to go overlimit. I was advised to refrain from using my account when I spoke to customer services by phone, but I take cards and they need somewhere to be deposited. So when a customer pays some money up front by card it is just lost in bank charges I cannot get out of the cycle. So most customers pay cash now or pay the supplier by card directly so we can carry out the work needed.

Early last year my business account for a change was allowed to go overdrawn but at a cost of £30 per item paid. For a start it was a help that I could pay my suppliers but with the three month accumulation of these charges gave us hefty bank charges that then caused everything to be returned unpaid at £35 we managed to get back into credit but then the charges went monthly which meant we paid over £1000 in bank charges in a five week period. I phoned to ask if it was possible to have an overdraft or to take the charges like they do when they return an item as we were finding it caused us to be near a limit they had set before they would return an item. The annoying thing is they keep readjusting the limit. So I do not feel I can control. I have asked for help again this week as we are extremely busy the workshop is heaving and I am having to ask for money upfront from customers to pay for parts but that goes straight to the suppliers and it does not go to show the bank that we are busy. So they are not prepared to assist in anyway possible. Interest rate for being overdrawn is 29.95%. My monthly bank charges are around £300 + which before this was about £100 per month and my account was in credit.

I opened a foundation account with NAT west in Dec 2009 but found that they did not take card payments even though in their literature it stated that they did. I was with cardsave and streamline for my card providers so they are affliated. As most of my customers pay by card I could not continue banking with them so cancelled my direct debits with them but they would not accept my instructions so continued to charge returned items and then closed the bank account and then put me with a debt collection agency. SO be careful.