Among the countless remarkable matters, we encourage our clients is to guard their money. If you obtained piles of debt under the same bank where your current account, it is best to settle and talk to your bank urgently.
Your bank can take actions such as:
- leave any overdrafts from your current account
- assist you to decrease your overdraft at a rate that you can afford, and due to what you owe
- set you up for a new basic account
Moreover, we recommend that you open a basic account to other providers if your bank refuses to help you. If you failed to do so, there’s less possibility that your bank will take out money to pay your debts off, affecting your capacity to compensate for your necessary living costs.
Things you need to know about bank accounts
- Banks are entitled to utilize the right of set-off or combination of accounts. If your current account is at the same bank where you hold a loan or credit, the bank can take money from your account if you have delayed payments on your loan or credit. However, this is quite bizarre recently.
- An overdraft is a debt. It is considered debt by the bank just like any other debts. In some bizarre situations, when you have overdrafts, the bank will have to wait for the money to come in so they can take it out from your current account.
Can I open for a bank account if I have debts?
If you are looking for banks to set up a new bank account. You must consider a bank that is different from your current bank. Additionally, you must also find a bank that allows you to open a basic bank account. A basic bank account works the same as a standard account but can’t let you access overdraft.
Requirements to Open a Basic Bank Account
You need to have proof of identification and a document as a proof of address.
Valid IDs that can be accepted are as follows:
Any of these can be a proof of address:
- latest council tax bill
- driving license
- latest bank statement
- current utility bill or your TV license
- latest letter about benefits
What if the bank refuses to let me open an account?
You should be aware that regardless of your credit report rating, banks cannot use this as a reason not to let you open an account. The only time they can stop you from opening an account is when you are not discharged from your bankruptcy, or in cases of fraud.
If in case, banks won’t accept your application, make sure you specify that you’re opening for a basic account and not an ordinary account.
Should I change banks?
You have the liberty to chose where you want to bank. However, when you have overdrafts, not in the current financial struggle, you must let your institution know and resolve it with them. If they cannot offer help, there’s less chance that they can compensate for your loan, or overdrafts by taking money from your current account.
In contrast, if they tool money from your current account, there’s no way to return it. However, this rarely happens, and banks resort to this option.
If you are in the tailspin of bankruptcy, you need to consider FREE DEBT HELP. Our finance experts can give you best debt management plan, it is possible to get rid of your debt in no time. Should you wish to speak via phone, call us at 0800 193 1024 or online