Can i help?

[CAGisforME]

Hi The Power,

 

I'm told by friends that the Nationwide Flex Account is worth a try, although I can't personally recommend them as I have no accounts with them.

 

I would be careful not to apply to too many at once, as it may affect your score, showing multiple applications.

 

For the time being I understand you have a Co-operative Account? Is it not working for you? The reason I ask is that often it's tempting, after being in debt, or having problems managing credit, to want to "re-instated" back to the way things were, with a "regular account" etc, but it's not necessarily the way forward.

 

Perhaps you could share with us why the account you have doesn't fulfil your needs? That way people on here may have other ideas that could help, or again, recommend an account that would perhaps suit you better.

 

[Thepower]

Perhaps you could share with us why the account you have doesn't fulfil your needs?

 

electron switch card sucks! that simple

 

try giving an electron card over in a hotel!

 

now I've got a capital one visa card with a zero balance ( the capital one we will give anyone a card at 23% APR) so it's not such a big deal just nice to have a cheque book too, for pay bills over the counter

 

Anyway i'm looking for an account where i can open a basic account be a good boy and be rewarded with a nice cheque book and card

 

might try the debt sub forum

[indebtstudent]

This about sums up why ethical was wasting time here, the logic simply doesn't work...

 

"The charge is £35, it is avoidable with the bank i work for and every other bank, i am simply waiting for someone to ask the right questions."

 

Regarding the comments made about moving from a basic bank account I don't think the Flex Account is the asnwer. I work for Nationwide and I would ove to tell you that we will offer you a debit card but if you have adverse information we will not (in my expereience).

 

The suggestion to approach one of the big banks is sound, off the top of my mind HSBC do seem to throw money at people quite often.

[noomill060]

Power- a cheque and card may appear to be the reward for good behaviour, but many places no longer accept personal cheques, so it really doesnt have the cudos it once did. I think cheques are a bit naff these days anyway.

 

A pre-pay debt card gives you all the advantages of a cheque without the hassle of having to write them out. You can use them to pay for stuff in the same way any other debit card with no risk of any charges, ever because you load it up with cash at any post office, just like a pre-pay mobile phone.

 

You can use them online too.

 

If I didnt have a credit card, I would definately get one. I may just get one anyway, just to keep some emergency spending money on.

 

Heres one thats always being advertised on the radio- there will be others.

[noomill060]

Oh, hang on, I'll try again-

 

https://www.talksportcard.co.uk/

[Andy Williams]

The Power,

 

I have an account with NatWest set up as a Step account which is their basic account....it was quite basic when I set it up but now it does everything the normal account does bar a cheque book. internet banking etc.

 

My credit rating has been improving steadily over the last year. The last time I went in a cashier asked if I wanted a full account with cheque book. I made an exscuse that I was too busy...thought she was trying it on for those add ons that they charge £10 a month for plus I didn't want another credit check at the time....as I left she said do it next time itheir's no catch and it will improve your credit rating.

 

Next time I'm in the branch I will and let you know

[CAGisforME]

As I said before in my other post, it's often the case that we can only speak from our own employers rules or our own experience!

 

Hence I suggested Nationwide as a friend with adverse credit had found them refreshingly sympathetic. However indebtstudent has the inside knowledge, so that one's out.

 

All I can suggest therefore is to tk check sites such as this one: Basic Bank Accounts, Open a Basic Bank Account, Apply for a Basic Bank Account

 

and perhaps contact the banks by email to ask what their criteria is to move to a "regular" account after a period of good standing.

 

Meanwhile I would consider using Internet or Telephone banking to pay bills, rather than over the counter. It's not only less time consuming but it gives you a good audit trail, as a cheque does.

 

As you say, you have the Crapital One card and can therefore at least pay hotel bills etc. (Just watch them carefully - from my experience, whilst they will give a card to "anyone", they will charge you for breathing if they can!)

 

Sorry I can't help further on this particular question.

[pinkbabez]

Hi ethicalbusinus, When a customer applys for an overdraft they are given a limit, why is it you can go over this limit ? surely when you reach your LIMIT then your account should decline payment not alow you to go over which then allows the bank to charge £25 in my case ? thanks in advance.

[indebtstudent]

I think I can field that question even though to original poster is gone. I like to think I am a fair person and I can see both sides of the argument.

 

I think the direct debit sustem is a scandle and a shambles, perhaps intetionally so...

 

But in terms of cheques and debit card transaction I believe that, if you have authorized them, then the organisation has to pay them. That said I am sure that somebody somewhere could create a better system but given that that's going to make less money I can't see anyone going for it. I'm not saying it right just trying to put myself into the industry's shoes (I feel odle dirty and ashamed now lol!).

 

For example when the cashpoint is asked for cash many will decline it if it is not there but some will pay out. This is not acceptable, plus coming back to DD's when a DD bounces you get a massive charge. If you go to the cash machine and it won't let you have cash there is no massive charge.

[CAGisforME]

When a customer applys for an overdraft they are given a limit, why is it you can go over this limit ? surely when you reach your LIMIT then your account should decline payment not alow you to go over which then allows the bank to charge £25 in my case ?

 

Whilst I personally agree with you the banks will put up several arguments and reasoning on this particular question.

 

Firstly it differs from bank to bank, customer to customer and account to account.

 

However, the rule of thumb is that the "limit" is given to you and you know about it therefore it's your responsibility to stop spending when you get there. However, that doesn't necessarily mean that cheques you have forgotten about (and that were guaranteed), DDs etc can't come out after you have reached the limit.

 

Some customers will find that everything bounces after they reach their limit, others will find the items paid, others will find they've been charged for the priviledge of either of these eventualities.

 

If you are say with a couple of pounds of your limit and a DD comes out taking you overdrawn then they can do two things. 1. Bounce it and charge you or 2. Pay it and charge you, or, if you are a "good" customer, pay it and not charge you!

 

That's the way they see it and it comes down to it being the Account Holder's responsibility to run the account within it's limits.

 

That said often "good" customers have what is known as an "anticipatory limit", ie an "allowable" limit over and above the agreed limit that they know about. This is normally calculated given the account holder's good standing with the bank, their income, their normal expenses, how often they have been over limit etc.

 

Therefore what the customer THINKS is their limit is NOT necessarily the case and the bank may continue to allow payments of debits even though the account holder is over their limit.

 

Again it's up to the account holder to check and to ensure that they stay within their limit.

 

As indebstudent points out, an ATM may pay out when you are over your limit, it may not.

 

To further complicate matters there is also the subject of uncleared funds to consider. SOME banks/accounts allow the customer to drawn against cheques that have not cleared. But if they bounce, the customer is overdrawn.

 

Also SOME banks allow you access on a Saturday to funds not actually physically in the account until the Monday. Again, if anything happens in the meantime the account will go overdrawn.

 

As you will see from all of the above, there is no hard and fast answer. Other than writing down everything you pay in and out of the account and working within the balance you know you have "available" (ie after cheques you've written out etc) as opposed to what the ATM or online banking shows to be your balance.

 

Re-reading this I only hope I've explained this properly!

 

[NitrousOxide]

I've used the Co-op cashminder. It's ok if you can't get anything else.

[rory32]

Therefore what the customer THINKS is their limit is NOT necessarily the case and the bank may continue to allow payments of debits even though the account holder is over their limit.

I completely agree with this. When I used to earn a lot of money I had an authorised overdraft limit of £900 but I was often overdrawn £1600 or £1700 a month and transactions were never declined, e.g. DD's and cheques, nor was I ever charged for going over my authorised overdraft. This was only about 6 or 7 years ago.

[kennythecelt]

When a customer applys for an overdraft they are given a limit, why is it you can go over this limit ? surely when you reach your LIMIT then your account should decline payment not alow you to go over which then allows the bank to charge £25 in my case ?

 

......................................

 

Some customers will find that everything bounces after they reach their limit, others will find the items paid, others will find they've been charged for the priviledge of either of these eventualities.

 

........................................

If you are say with a couple of pounds of your limit and a DD comes out taking you overdrawn then they can do two things.

1. Bounce it and charge you or

2. Pay it and charge you, or, if you are a "good" customer,

3. pay it and not charge you!

 

 

 

Agreed.

 

The "good" customers for the banks or the cash cows/ bonus ball are option 2 customers --.Pay out and charge you.

 

Keep you in the system and milk you dry. Then offer consolidation loans to further increase the misery and if you have a home, get you to release equity by borrowing further mortgage extension.

[CAGisforME]

You are of course absolutely right KTC !

 

(I just thought that might confuse the answer I was giving even more!!)

 

 

Another example. True Story. It was a case of fraud, but demonstrates the "unknown limit" perfectly.

 

 

My parents HAD an account with a high street bank for 40 years. They now live abroad, but their pension is paid into their UK account and transferred. They were in the UK in order to visit family and travel for several weeks to the other side of the world and nipped to the ATM "last minute" to grab some UK cash for the airport. Their ATM card was declined.

 

They went in to the bank to find they were just short of £10,000 overdrawn. Yes, I said £10,000.

 

As far as they were aware they didn't have an overdraft facility at all.

 

Their limit was £0 as far as they were concerned.

 

It was a case of fraud by someone who knew the system. They had ordered another ATM card and PIN for my Dad, who never uses his, got it sent to the branch as my parents are abroad (this is a SECURITY arrangement my parents had in place as a member of the family could collect the cards if they showed id) , and started to withdraw their daily limit out of the ATM every day for WEEKS.

 

Had they not visited the ATM just before driving to the airport they would not have known and would have been stuffed on holiday.

 

However the point here is that the "anticipatory" limit had been added WITHOUT their knowledge, NO CONTACT had been made to tell them that they were so far overdrawn, they would not have known until they got their next statement had they not been going away.

 

The banks answer when my parents asked how so much could be taken from what was in effect an empty account, once the fraudster had removed the ACTUAL balance, was:

 

"Well, you're such good customers, you've never been charged, you pay in regularly, so we know you are good for it."

 

NOT ONE charge had been applied to the account. BUT the bank also said:

 

"We can sort you a loan out right now to pay it off until you get back and then we can sort out what's happened. Are you sure one of your grand-children hasn't been playing with your wallet Sir?"

 

Two word answer from my Father (before he called the Police) ... the second one was "off"

[deadlykiss]

hi ethical can you explain why banks dont help people on benefits when they have been charged excessive amounts i once approached my bank regarding charges and asked them if they could take charges off in seperate payments rather than a whole £90 as i only get £100 week , i was told politely tough cookie i dont think thats the kind of help i wanted ,, ahh well the fight goes

 

good luck anyway

[CAGisforME]

As previously mentioned the OP has stopped anwering questions.

 

Actually I think they only answered one and that wasn't really well answered or explained - in my opinion.

 

Trusting that your question was rhetorical deadlykiss, I think we all know the answer. They think they are above the law with regard to benefits and they are chargind to make even bigger profits from those who can least afford it.

 

Why?

 

Because until the good people on this website and similar came along, no-one had stood up to them!

 

[indebtstudent]

I concur, bearing in mind Occam's razor (spelling) I would have to say that banks have had things all thier own way for so long they have just got used to doing what they like.

 

Whilst I can understand people's frustrations (indeed I sahre them) I think in future we would be best served by taking up an offer of somebodies help and thereby assess if they are a plant or not.

[remus]

 

I think the direct debit sustem is a scandle and a shambles, perhaps intetionally so...

 

Indebtstudent, this is a subject close to my heart:rolleyes: , are you able to expand?

 

FOS DD's and me

[Edz11]

Having read Ethical's posts there's one thing that seems to have been missed. She came on saying how she could give lots of wonderful advice on how to avoid charges and give us lots of useful information - all we had to do was ask the right question!

 

Well, if there are wonderful ways of avoiding charges then they should be on page one of every bank website. But they aren't... Look on the Co-op Bank website. No page tells of the availability of a "blanket stop". No advice at all on ways to avoid charges.

 

If Ethical was serious, there was nothing stopping him/her spilling all on day one. Why did we have to ask the "right" question - we aren't doing the Times crossword on here. I think Ethical is imbued with the Banking spirit and it goes to her very core.

[Oh Boy!]

Whats with the SAVAGE attack on Ehtical, he is only offering advice,

 

Calm down Members, and ask the questions that need answering, here is a person waiting to offer a insight into the banks, and some advice that during banking hours, he cannot give on the phone even if you paid him.

 

Advantage people.!

 

__________________

** Credentials **

 

10 Years Finance Fraud Investigator

 

5 Year High Court Sheriffs

 

2 Years Tip Staff Royal Courts

 

Currently : HMCS Enforcement Officer

[rory32]

If you look at post #82 you will see that this is quite an old thread and that Ethical left on 4th September...without really giving any advice that most people don't already know.

[Edz11]

I'd read that ethical had left before posting. It just struck me that rather than offering information we had to "guess the right sequence of numbers".

 

If Bank employees want to help then they should help, not make a vague offer. Iwould have liked to ask how to avoid DD failure charges.

 

If I knew that there wouldn't be enough funds in my account to pay a direct debit then I would ring the Bank before the business closed and say "please cancel my direct debit". They always huffed and puffed but they did it. One did say "in writing first" but I pointed out that the DD guarantee said "anytime" and did not mention "in writing".

 

The DD guarantee has been changed so that it now has to be "in writing". So I have the fax number of my Bank so that they can't get out of it that way. But the point is that it isn't made easy to know how to avoid charges - the Bank don't give that advice and the offer of assistance from ethical was not wholehearted I think.

[gt94sss2]

My opinion is that the Act is quite clear:

 

187- Subject to the provisions of this Act, every assignment of, or charge on-

(a)benefit as defined in section 122 of the Contributions and Benefits Act;

(b)any income-related benefit; or

©child benefit,

and every agreement to assign or charge such benefit shall be void; and, on the bankruptcy of the beneficiary, such benefit shall not pass to any trustee or other person acting on behalf of his creditors

No charges can lawfully be made on benefits.

 

I'm afraid your opinion is wrong then.

 

I used to be responsible for drafting some government legalisation to do with aid payments and subsidies and the language used above is very familiar.

 

It doesn't mean that banks can't take out 'penalty' or interest charges where the source of the income is benefits.

 

Instead it means that a financial institution cannot use your benefit payments as 'security' against a loan - just like a mortgage is secured against a property (legally called a 'charge')

 

If such a rule didn't exist, the benefits agency would be in the position of directly paying any benefits directly to the loan company if any loan went into default.. (much like an attachment on earnings)

 

Regards

Sunil

[willtheywontthey]

I'd be interested to know from the ethical coop person whether he could elaborate on the coop's policy in contacting customers via telephone - several times a day and to elaborate their use of automated phone calls as well? How many times a day is 'acceptable'? Is this a cost-cutting method instead of sending a letter so that the 'late charges' etc have higher profit margins?