Bankruptcy & Opening a new account

[Jane1960]

Hi to all,Please can anyone tell me what account & who with i can open a bank account i am applying for Bankruptcy & have applied to HSBC but have been declined

[phat256]

hi jane try the Co-op if you dont have any debt at the time of yoru Bankruptcy as you will be refused one.

 

You can try Barclays but you will have to apply in branch and ask for a basic account it is called cash card account . I have one and i am happy with them.

.

if you have nol luck with either of them at all then i will advise you think banking. this is a basic account with a monthly fee (12 pounds) but no credit check and use it as a last resort when all else fails .

good luck

[toddle2u]

Also try the Natwest step account

[phat256]

Also try the Natwest step account

there is only 2 bank who let undischarge bankrutp to open and keep a bank account . .the co-op and barclays .

have a look form the FSA link

 

http://www.moneymadeclear.fsa.gov.uk/HTML/en/products/bank_accounts/basic_bank_accounts_popup.htm

irt clearly sais that record of bankruptcy and fraud they will not let you keep or open a bank account

[toddle2u]

there is only 2 bank who let undischarge bankrutp to open and keep a bank account . .the co-op and barclays .

have a look form the FSA link

 

Strange as Natwest let me keep my Step and Savings account

[Dodgy Geezer]

And me. They never closed it, and i am still using it.

[Jane1960]

I am still with Natwest,But i do have a 1400 overdraft facility,I havent been made Bankrupt yet my appointment with the court is the 12th of nov,So have been advised to open another account,Thankyou to all of you for your replies,I am very grateful,A bit simple when it comes to this really,x

[Dodgy Geezer]

Do make provisions for a new account. Just in case.

You dont have to use it. It just makes life easier.

There is a possibility that Nats will close your account.

I walked into the COOP and walked out again 10 minutes later with an account.

I went back to Nats when i realised that they werent going to close my account.

[toddle2u]

They will definatly withdraw your overdraft facility as you are not allowed credit of over £500 without informing the lender. So as DG says make provisions for another account. Co-op is very easy. I opened one like DG but as Natwest didn't close mine i kept using that.

[phat256]

Strange as Natwest let me keep my Step and Savings account

 

And me. They never closed it, and i am still using it.

 

 

maybe you are just an exception i can tell you that the general practice is that they do not let you keep it unless they are making you a favour. maybe you should read the FSA link i enclosed

i suggest that you both read this link

 

Bank Accounts & Bankruptcy - MoneySavingExpert.com Forums

 

and especailly this one from FSA guidelines

http://www.moneymadeclear.fsa.gov.uk/pdfs/bank_accounts.pdf

especailly page 4 If any of the following apply to you, your application may be declined Undischarged bankrupt, record of fraud.

 

it is not becasue you have one acooutn with them that it is a general practice , sometimes there is an exception to the rule but only sometimes !

[Dodgy Geezer]

Phat. **EDITED**.

Times are changing and banks are wising upto the fact that BRs are on a massive increase.

 

Quoted from page 4. The emphasis being on " MAY BE DECLINED "

 

 

If any of the following

apply to you,

your application

may be declined

Edited October 24, 2009 by car2403
Removing potentially offensive comments

[toddle2u]

Phat. **EDITED**.

Times are changing and banks are wising upto the fact that BRs are on a massive increase.

Totally agree.

 

unless they are making you a favour.

Banks don't do favours. The reason they kept it open is because it is there policy to let BR's retain a Step Account. You shouldn't believe everything you read especially when you have facts proving to the contrary Edited October 24, 2009 by car2403
Quotes edited post

[phat256]

i think dodgy geezer and toddle you should have read this part of the application process, and thisis what iam referrgin isn saying that the OP application may be refused

 

"We may obtain information about you from credit reference agencies and Group records to check your credit status and identity. The agencies will record our enquiries which may be seen by other companies who make their own credit enquiries. We may use credit scoring.

Your application will be assessed using credit reference agency records relating to anyone with whom you have a joint account or similar financial association. If this is a joint application and such a link does not already exist then one may be created now. These links will remain until you file a "notice of disassociation" at the credit reference agencies."

 

then on the bottom it says

"By continuing with this application you are agreeing that we may use your information in this way."

 

then you will see this clause from their term o and condtion form step account

 

"1.3.1 We may make periodic searches at credit reference agencies and

will provide information to the Group to manage and take

decisions about your accounts. This may include information

about how you manage your account including your account

balance, credit limit and any arrears. We will also provide this

information to credit reference agencies who may make this

information available to other organisations so that they can take

decisions about you, your associates and members of your

household. This information may also be used for tracing purposes."

 

then after seeing that you have both an account with Natwest i decided to tried it myself and this question arised " "have you /ever been declared bankrupt ? " so fo courseyou have to answer yes and h i was declined for failing the credit score. ..

 

what i have suggested to the OP is a realistic and viable option that has been the norm in the previous year. this accoutn althouh basic, they have accepted throughotu the years undischarged bankrupt as they do not do a credit record search . thus i suggest this is maybe a safer option for the OP than trying and trying to be turn down ...

 

it is tis true that insovency is on the rise but you should be carefull by suggesting that the Br amy become sympathetic to the case of BR, you will find that in the majority it is far from the truth.

Moreover the Op has already an overdraft of 1400 pounds which i suspect that NATWESt wil not let her keep her accoutn .. oh by the way previosu ot my Br i had a joint step account and an advantage gold account which was closed by Natwest when they heard my BR order as paarently " it is nto thier polciy to maintain an accoutn with an undischarged Bankrupt" their word not mine .

I suggest that you have a through look on this board

http://forums.moneysavingexpert.com/forumdisplay.html?f=136

and you will find that many BR people have difficulty getting bank account .

Edited October 24, 2009 by phat256

[Dodgy Geezer]

Phat i just fail to see your point.

 

You keep repeating yourself.

 

Do you know what the word " MAY " means. ?

 

An application MAY BE refused if you are, or are about to be made Bankrupt.

Nobody is deputing this. What we are saying, well i am anyway, is that the banks realise that there is a market for Bankrupts and people with bad credit.

 

Being bankrupt does not mean that they wont give you an account, only maybe.

 

Thats MAY decline your application.

[toddle2u]

I suggest that you have a through look on this board

 

I wish you would stop 'suggesting' to me what i should do I find it offensive.

 

You have a very blinkered view of things and seem to believe that only your view is correct. The fact that Dodgy and myself both have bank accounts with Natwest proves you are wrong and that you have completely failed to see Dodgy's point in that you MAY be refused an account.

 

If you have nothing positive to say and are only interested in 'point' scoring I would suggest you stay off the forum

[Dodgy Geezer]

If you have nothing positive to say and are only interested in 'point' scoring I would suggest you stay off the forum

 

Hey toddle2u. Bankruptcy is so hard, so emotional, and for me personally, such a pain.

 

Can we all stop fighting each other now, and help each other as we want to.

 

I understand that not everybody has the same opinion about every subject.

 

I give my opinion with verve, and vigour, and always with true honesty as the way i feel it.

 

Im also often wrong. Thats the way it is, thats all we can do,

 

BE HONEST.

 

PHAT. My Friend. I really value your opinions, and i dont, for one second suggest i am right and everybody else is wrong.

 

I mean you no harm, and wish you the very best for your future.

[toddle2u]

Hey toddle2u. Bankruptcy is so hard, so emotional, and for me personally, such a pain.

 

Can we all stop fighting each other now, and help each other as we want to.

 

DG agree with this. Lets all move on and get back to helping people which is the whole idea. Infighting gets none of us anywhere

[GottaDoit]

Just wanted to add that I too have been allowed to keep my Natwest Step and E-savings accounts, and also a Business bank account (a Foundation account which is the business equiv of a Step account). So far I have been able to use them all, although only with internet banking since the OR took my bank cards.

 

I only opened the accounts a few months before deciding to go bankrupt, never had an overdraft and always kept the account within the rules, i.e. no failed payments etc. Also none of my debt was to Natwest (directly) - not sure if this helped.

 

I had started to wonder if the receivers had forgotten to tell them, but now know they have. I haven't been discharged yet but the OR has started the early discharge process which is great - after only 5 months. I suppose the proof will be if they still let me keep and use the accounts after discharge, anyone in that position?

 

Not sure whether I should ask them for new bank cards?

 

I did open a co-op account as well just in case and so far that's fine too.

Edited January 7, 2010 by GottaDoit

[GottaDoit]

Just to confirm this, I spoke to a nice girl at Natwest and she said that you are indeed allowed to keep a Step account when you are bankrupt. Bit annoying the OR took my debit card, but the bank are going to send me a nice new one.

Good start to the New Year!

[Miss_Spingle_Spangle]

I would also say that you look into pre-paid Mastercards. I think you can have your wages paid onto them (not 100%, just something I heard). There's loads on the market.

 

I just got one and now I can pay for stuff online and in shops again. They're great as you can't spend money you haven't got.

[danboy381]

Yes, indeed pre paid marstercards are excellent. They had them in the states for many years, going back about 15 yrs ago, and its good that the Uk have finally caught on. Maybe we wouldn't have the massive consumer debt the uk has if these cards came along sooner.

 

BTW, if anyone is requiring a Business account, Natwest offer the 'Foundation Account'. You have to be discharged from bankruptcy, but they offer cheque book, debit card, online banking, DD's, Standing Orders etc etc. But NO Overdraft initially.

But then you dont want to go down that road if youv'e just come out of bankruptcy do you?!

 

db

[GottaDoit]

With a Co-op cashminder account they now issue a Visa debit card which (according to the visa debit article on Wikipedia) is accepted internationally both online and in most shops, therefore there is no need for a pre-paid credit card in that case. Natwest also now issue a visa debit card for the Step account. If an online store offers PayPal as an option you can use Maestro cards too.

Edited January 11, 2010 by GottaDoit

[GottaDoit]

if anyone is requiring a Business account, NatWest offer the 'Foundation Account'. You have to be discharged from bankruptcy

 

You possibly would need to be discharged to open a new account (the guy at Natwest couldn't confirm that) but if you have already opened a Foundation account and are then declared bankrupt, you will be allowed to keep and use it as normal. Natwest have confirmed it is the business equivalent of the Step account. You also get to keep and use the cheque book (unlike the Step account), online banking, etc.

 

The only downside is that the OR will take your debit cards etc. off you but if you phone Natwest they will send you a new one. Alternatively you could tell the OR that you know you will be allowed to keep this account and ask if you can therefore keep your cards, chequebook etc.

[danboy381]

Wouldnt bother to tell the OR you have a debit card. It means nothing to them anyway.

[GottaDoit]

That's a fair point. I handed over my debit card but didn't give them the chequebook, card reader or paying in book. In hindsight I should have just said I didn't have any of them.