Co-operative Bank Cashminder Account

Advantages:

• No monthly account charge.
• The acceptance criteria include persons that are formally insolvent.
• Apply by telephone, or in-branch.
• Bank online, by telephone, or in-branch.
• A debit card is provided.
• You can set-up standing orders and direct debits.
• You can nominate a local Post Office for basic banking transactions if necessary.

Disadvantages:

• Limited Co-operative Bank branch network.
• You cannot apply for the account online.
• Charges will apply for unpaid items or going overdrawn.
• Repeated unpaid items are likely to result in the account being closed.

Trust Deed Forum View. The Co-operative Cashminder Account May Suitable If:

• You do not owe money to Co-operative bank, Smile, or Britannia.
• You do not regularly have insufficient funds in your account to make standing order or direct debit payments (otherwise bank charges will apply and your account may be closed).
• You are comfortable with the limited branch network.

Visit The Co-operative Bank’s Page: Cashminder Account

ClearCash Prepaid MasterCard & icount facility (Various Fees Apply)

Advantages:

• Guaranteed Acceptance. There is no credit check as part of the application process.
• Your salary and benefits can be paid into the account directly.
• You can pay direct debits, standing orders and bill payments from the account.
• Bank online or by telephone.
• Card purchase protection applies.
• Additional cardholders can be added to the account.
• Creditbuilder facility could help you to improve your credit rating.
• No penalty charges for missed payments. Cannot become overdrawn.

Disadvantages:

• Monthly account fees (and other fees) apply.
• There is no way to pay a cheque into the account.
• No branch network.

                                                              
Trust Deed Forum view. The ClearCash Prepaid Mastercard & icount Facility Account May Be Suitable If:

• You are having difficulty opening a bank account elsewhere.
• You are comfortable with banking online or by telephone.
• You do not need to be able to pay cheques into your account.
• You consider that a Creditbuilder facility might help you to improve your credit rating.

Visit the ClearCash website to apply: ClearCash Prepaid Mastercard *

Think Banking Account (Monthly Account Fee Applies)

Advantages:

• There is no credit check as part of the application process.
• Apply online or by telephone.
• Bank online or by telephone.
• A debit card is provided.
• You can set-up standing orders and direct debits.
• No charges apply for unpaid items or going overdrawn.

Disadvantages:

• A monthly account fee applies.
• No branch network.

Trust Deed Forum View. The Think Banking Account May Be Suitable If:

• You are having difficulty opening a bank account elsewhere.
• You wish to avoid bank charges for unpaid items or going overdrawn.
• It would be useful to have extra help with budgeting.
• You are comfortable with banking online or by telephone.

Why You May Need To Change Banks Before A Scottish Trust Deed

If you are about to enter a Scottish trust deed, the debt arrangement scheme, or bankruptcy, you are likely to be advised to move your current account to a new bank.

The reason for this is that it is likely that you already owe your current bank money. This might be in the form of an overdraft, loan, or a credit card for example. These are debts that will become creditors in your protected trust deed, debt arrangement scheme, or bankruptcy.

If you do not change your bank (to a bank that you do not owe money to) you are at risk of “set-off”. This is where a bank seizes money from one account to pay another. An example would be a situation where you did not pay your credit card bill to ABC Bank when it was due. If ABC Bank then discovers that you have just been paid, they may take this money from your current account to pay off your credit card. This risks you being left without cash to pay your mortgage/rent, council tax, utility bills, and housekeeping costs.

A second risk is that your bank is likely to prevent you from continuing to use your account if you owe them money. When they are informed that you are proceeding with a trust deed Scotland, Debt Arrangement Scheme, or sequestration (bankruptcy), they are unlikely to wish to retain you as an active current account client. This could leave you temporarily without access to banking facilities or cash which could be extremely inconvenient and cause major problems.

Why Apply For A Basic Bank Account For Your Trust Deed Term?

If your credit record is damaged already you are unlikely to be able to obtain bank accounts that incorporate extra features such as an overdraft or a chequebook.

Even if you were successful in obtaining such an account, your new bank is likely to close the account if they subsequently discover that you have entered a formal debt solution such as a Scottish trust deed, the Debt Arrangement Scheme, or bankruptcy (sequestration).

If your credit record is not currently damaged you may be able to obtain bank accounts that incorporate extra features such as an overdraft or a chequebook. However you are at significant risk of the account being closed when you enter a formal debt solution such as a trust deed. It is also clearly a bad idea to carry on using new credit during a protected trust deed, bankruptcy, or debt arrangement scheme (and in some instances a breach of rules with possible serious consequences).

Basic bank accounts typically do not offer credit facilities. However they can still provide good levels of functionality, convenience, service, and support whether you are in a trust deed or the other debt solution alternatives.

Further Questions About Bank Accounts

You may wish to visit our trust deed forum if you have further questions regarding bank accounts during a trust deed, sequestration, or debt arrangement scheme. Representatives from four different trust deed firms are available to answer your questions about bank accounts or any other matter relevant to the Scottish trust deed process.

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