Wednesday 9th of September 2009
Britons who are declared bankrupt are refused basic banking services, which could highlight how an individual voluntary arrangement (IVA) could be a better debt solution.
Only the Co-operative Bank and Barclays offer basic bank accounts to undischarged bankrupts, with NatWest not offering such a service to people within the six-year bankruptcy period.
This means that until individuals are discharged from their bankruptcy, they are unable to hold basic debit cards or pay cheques into accounts.
Indeed, this could make good financial management difficult and instead, households may find an IVA gives them more flexibility when it comes to getting their monetary strategies back on track.
"Basic bank accounts allow people to have wages, benefits and state pensions paid directly into accounts, take money out at cash machines and pay bills by direct debits," The Mirror explains.
It was also recently revealed by moneysupermarket.com that lenders are charging more than ten per cent annual percentage rate on average for a £5,000 loan.
By Hayley Jones
- House price rise 'may not indicate recovery'
- Equity release 'needs to be increased'
- Need for IVA help could increase as expert predicts reduction in lending
- Government announces 'breathing space' for those needing IVA help
- Lack of subprime lending creating need for IVA help, expert suggests
- IVAs could help households with an out-of-work adult
