NatWest/RBS say that their basic bank account holders won’t be able to use rival banks’ cash machines.
If you’ve been declared bankrupt, had debt problems or don’t have a credit history, a basic bank account may be the only account you can get.
If you bank with NatWest or Royal Bank of Scotland and you have a basic bank account, which is one where you can’t go overdrawn and that has limited facilities, you’ll only be able to take cash out at NatWest/RBS or Tesco cash machines in the future – or take money out at the Post Office counter. The bank is writing to its one million basic bank account customers, telling them about the change.
Government cutbacks mean less funding for debt charities. But that doesn’t mean you have to go to a fee-charging debt adviser.
If you’re having problems paying back your loans or credit card bills your first step should be to get in touch with the bank or card provider. They’re supposed to help you deal with your debts (rather than solely concentrate on getting their money repaid). If your debt problems are serious or if you’re not getting anywhere with your lender, you should contact a debt advice specialist. And preferably a charity such as CCCS, Citizens Advice or National Debtline as the advice they give will be completely free.
The OFT is clamping down on ‘charging orders’ where lenders can turn unsecured debt into debt secured on your home.
The Office of Fair Trading found that some banks used charging orders for arrears of only £600.
Updated 26th February 2011.
If you owe money on your credit card or a personal loan the last thing you imagine is that your home could be at risk. But banks and card companies have the right to turn unsecured debts (which includes loans and credit cards) into secured debts, which means it's linked to your property. The way they do this is through charging orders. Now the Office of Fair Trading has criticised four lenders - including subsidiaries of high street names - for the way they’ve been using charging orders.
