The Co-operative bank has decided to withdraw its free bank account, the cashminder account, for people who are bankrupt.
The Co-operative bank account was one of two bank accounts available for people who were bankrupt. It was a free banking service which offered the standard online and telephone banking facilities. Most other banks would refuse anybody who was currently bankrupt a bank account.
Barclays is the only bank providing a standard bank account now.
In the past the only reason a person would not get a bank account with Co-Op or Barclays would be if they had a record of fraud.
When entering bankruptcy a person requires a fresh bank account with a creditor they don't owe money to. This means switching bank if necessary. However, the Co-Operative has stated they will no longer accept people who are bankrupt for their basic cashminder account.
What Happens If I Have A Co-Op Bank Account?
If you currently bank with the Co-Op and don't owe them any money then you will be able to retain this bank account. If you recently applied for a Co-op bank account with the intention of entering an insolvency solution, like bankruptcy, then you will be asked to find alternative banking arrangements within 30 days.
The Co-Operative has stated that they are unfairly supporting the free banking industry for all, while other banks are refusing to help the most indebted individuals receive free banking help.
30% of the 330,000 Co-Op cashminder customers have been through an insolvency solution.
How Do Bankrupt People Bank?
Owning a bank account is essential in today's society. We need bank accounts to pay for shopping, receive our wages and for monthly direct debits.
People who are bankrupt and cannot get a free bank account are being forced to pay for a bank account. This can cost £20 per month, or a fee for every time money is withdrawn.
Seek Debt Help
You can seek debt help today from Debt Support Trust if you are struggling with a debt problem. We will advise you fully on the available debt solutions and the best ways to proceed.
You can contact Debt Support Trust on 0800 085 0226 or complete our debt analyser.