I have been in my IVA since June 2011 (a 72 month IVA) with Debtlifeboat.
Since i had a spread of debts with the mainstream banks getting a basic bank account has been not possible with any of the big names (although was with NatWest for 34 years prior to my defaults).
I applied for a Co-Op Cashminder account last month and asked the operator was it a problem i am in an IVA, she said not and duly posted me an application form.
This is submitted, along with ID info, checked and verified at the Brittania B/Soc (with whom i have had a savings account - £ 3.23 in it now!) so thought let's see.
This is the third application with Co-Op since my IVA, first two having been turned down (with no reason other than standard one sentence letter).
Last week i received a letter from the Co-Op saying was i still interested in making the application, and called the number to query.
The operator then said - yes, we send these a follow-ups but wait and i'll look at your application. A short pause then he replied saying yes the application is sucessful, you'll be receiving your card by the end of the week. Again i said that i was in an IVA and he said no problem.
Last night i arrived home to a letter fropm Co-Op saying my application has been declined!!!!!!
I am going to persue this with the Co-Op (cos' i will be on record on the recorded phone call to them) and i'm so dismayed.
This is my first post - what are the views on this business of Basic Bank Accounts and how to get one?
I feel dissafected and have to run a prepaid CardOne accound (£12.50 per month) as it's all i can get to allow me a cards for shops / ATM's.
Should there be some government legistation to help those of us in IVA's and trying to find the path back to social inclusion?
Celestail - well come to the forum. I have to admit i am NOT a fan of the Co-op as it appears bits of it have become disorganised.
I would also try the Yorkshire building society cash transactor account - it only offers a cash card - but the account pays interest and offer the facilities of Direct Debits etc.
It appears to becoming increasing difficult for people in an IVA to get even an basic account - so wonder if the paid accounts are becoming more frequent. I would also ask your IVA company if you can put the account charges as an expense as you have no option.
Yorkshire Building society - tends to have branches all over the UK - on their website you be able to see your local branch - however these days most things can be done on line or through the post.
You mentioned business accounts - Try Barclays, or i believe CashPlus (paid account) do a business account
I have never really understood the big high street banks being so averse to giving those in IVA's normal current accounts (unless they were a creditor), of course don't allow us an overdraft but surely just because of ending up in debt it shouldn't mean we can't have access to the money we put into a bank account (or that has to be paid into a bank account by employers) without having to pay for it?? Whilst I fully appreciate it is our own doing that has led to having to enter an IVA and it shouldn't be an easy ride, I do think it is unfair of the banks to charge you for a bank account (when people are having to budget for so many other things with allowances) and/or the big banks reject us for bank accounts, we aren't asking for credit.... you can only use debit cards if there is money in your account and take cash from the machine if it is in there so surely just restricting the use of an overdraft is sufficient.
I myself, am quite lucky (at the moment) that Santander have not yet downgraded or closed my 123 current account but I am prepared in case they do and have a flexaccount that was opened with Nationwide pre-IVA (again I dont know if they will downgrade if find out about IVA) so for now I can use my account as normal, I just don't have an overdraft!
Just seems a little harsh to be charging additional fees to people in IVA's who are already struggling to meet other expenses and repay debts. (Just like the mortgage providers too I guess, but they obviously know we wouldn't be able to mortgage elsewhere so can charge what they like in interest?!)
A lot of it - is to do with the running cost of the basic accounts - and the fact they cant then flog insurance/upgrades/mortgages etc - so there are not profitable for the banks
Last edited by ginger323232 on Thu Aug 15, 2013 2:49 pm, edited 1 time in total.
I have a co-op cash minder account and had no issue with opening this whilst in an IVA. I have had no issue with them throughout the process and have found their online services second to none.
I guess things have changed somewhat over the last 7 years ....
That they have Zeb1104 - some for better some for worse....
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See my recent post regarding this issue being reported. I thought there was some sort of legislation in place that meant everyone in the UK should have access to a (free) bank account?
I'll put this in my other post too as someone may know. I have done some digging on the net and there is plenty on there confirming that Alistair Darlings pre 2010 budget report confirms that everyone in the UK is entitled to a basic/free bank account. Does anyone know what became of this? Can't see anything in the final 2010 budget but may have missed something 'wordy'. If not, I'll contact UKGov direct and see what the position is.
