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Opening a parachute account?


Isaac Hock
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I'm reclaiming bank charges from Barclays and I've read that at some point I may need to open a "parachute" account, in case Barclays decide to shut my account down. I know that it is quite simple to open a new account with another bank and move all my direct debits, etc, using their switching facility.

 

The problem is that I am overdrawn. I read that Alliance & Leicester do a good account where you can move your overdraft, but you have to have been in the black at least 2 days in the previous month. I haven't been in the black for MONTHS due to snowballing bank charges. What can I do? If I just open a new account and switch over my payments, salary, etc, what happens to the overdraft at Barclays? Are there any other banks that will allow you to move your overdraft across?

 

Any help appreciated.

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Hi

 

Will you still have an overdraft outstanding after you have claimed back all your charges. If so, and if Barclays do close your account then they will expect you to agree a repayment plan for this.

 

You could try opening a basic account - obviously no overdraft or cheque book but you will be starting afresh. See the link below for some choices. Some do Direct Debits and have debit card/cash cards so quite good really.

 

http://www.consumeractiongroup.co.uk/forum/welcome-our-forum/58685-do-you-need-parachute.html?highlight=parachute+account

 

 

Regards, Pam

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How about opening a basic account just as a precaution? You needn't use it if Barclays don't close you down.

If you get your charges back, you can presumably pay off all or most of your o/d, then if barclays close the account you have the parachute till you can open another account with o/d facility if that is what you need. :cool:

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