Is it possible to live without a Bank account?

[chris667]

but they're probably fiddling the VAT etc like most remaining cash only businesses.

I think it's really unfair to suggest that if a business doesn't want to be dependent on a bank for all of its transactions it is naturally fiddling the books. I took a sabbatical from work a few years ago and opened a shop and didn't open a merchant account (you needed to do this back then to have card facilities). As a retailer, you know where you are with cash - no chance of a chargeback a month later. Plus no extra fees. It is more straightforward for everyone.

I like cash. I don't like places that are card only, it's harder to know how much you're spending. On more than one occasion I've been charged twice for rounds of drinks, for example. You have to either write it off as an expensive night out, or go back with your bank statement.

As to bank accounts being closed on "moral grounds", whose morals are we talking about? Look at the massive Pornhub website and the way the credit card companies managed to get them to remove most of the content by removing their banking facilities. I'm not defending what companies like Pornhub do, but It is a very powerful lever and banks don't have enough oversight or accountability to hold it.

As to bank accounts, a long time ago I tried living without one for a while working cash in hand. It didn't work for a lot of things, and was very expensive for others. If I hadn't lived with my mum and dad I wouldn't have managed.

 

[PaulSB]

Accounts can be closed on moral grounds the co-operative bank have in the past done it. I know of one and was in part involved in closing an account. Which was held by an organisation that become shown to hold view's which went against the values and principles. Of both the bank and it's then owner the co-operative group. Equally members of a building society can force the issue by using what ever means the society rules allow.

Thanks, this is a very good point and one I hadn't thought of.

 

[Pale Rider]

My brother, as a retired senior bank manager, has found himself treasurer/finance director of several organisations.

Even he was surprised how difficult it was to open a new bank account for a heritage railway, even though they had money and did not require any borrowing.

At the time, Lloyds simply said they were not opening new business accounts.

The railway eventually got sorted with Barclays, although it took several months from the date they accepted the proposal to get the account up and running.

Same thing happened when he sorted out the previously shambolic banking arrangements of a credit union.

From what I can gather, most non-status personal applicants manage to open an account, but it remains very difficult to force a bank to open an account for someone it doesn't want to deal with.

 

[PaulSB]

My brother, as a retired senior bank manager, has found himself treasurer/finance director of several organisations.

Even he was surprised how difficult it was to open a new bank account for a heritage railway, even though they had money and did not require any borrowing.

At the time, Lloyds simply said they were not opening new business accounts.

The railway eventually got sorted with Barclays, although it took several months from the date they accepted the proposal to get the account up and running.

Same thing happened when he sorted out the previously shambolic banking arrangements of a credit union.

From what I can gather, most non-status personal applicants manage to open an account, but it remains very difficult to force a bank to open an account for someone it doesn't want to deal with.

As an ordinary individual with no experience of the banking system other than personal accounts and a small business account I can echo this.

18 months ago I became a trustee and Treasurer to a small charity. By small our turnover is just in five figures. With the change of Treasurer it was necessary to change simple bank details, mainly contact details and one signatory. It took five months to achieve these changes. The outgoing Treasurer had immediately ceased to be a trustee and so was not entitled to access to the account.

The situation was resolved three days after the bank delivered a new debit card in his name to his address. This gave me the ammunition I needed to put the bank right on the spot.

Details updated in 72 hours and £300 compensation in our account two days later. Basically the bank new it had breached its own security.

 

[PaulSB]

To be clear I am not making any political point whatsoever. This not an NACA remark but this news report is relevant to the discussion.

Coutts Bank has closed Nigel Farage's account because he no longer reaches the bank's wealth criteria. The report suggests seven other banks declined him an account.

BBC News - Nigel Farage bank account shut for falling below wealth limit
https://www.bbc.co.uk/news/business-66097039

 

[matticus]

To be clear I am not making any political point whatsoever. This not an NACA remark but this news report is relevant to the discussion.

Coutts Bank has closed Nigel Farage's account because he no longer reaches the bank's wealth criteria. The report suggests seven other banks declined him an account.

BBC News - Nigel Farage bank account shut for falling below wealth limit
https://www.bbc.co.uk/news/business-66097039

OK. And what do you think about that? ( in a non-NACA way, of course! :P )

 

[PaulSB]

1. OK. And what do you think about that? ( in a non-NACA way, of course! :P )

I think there are two points:

A bank can pretty much act as it wishes and if it can demonstrate the bank's rules have been broken, criteria no longer net etc. no matter how flimsy though this appears clear cut, then anyone can be dumped regardless of wealth.

I found it interesting that banks consider a "politically exposed person" to be a geater security risk as their position means they are more likely to be exposed to bribery and corruption.

 

[TheDoctor]

Farage was offered a NatWest account, after being given notice that Coutts would close his account.

 

[PeteXXX]

Farage was offered a NatWest account, after being given notice that Coutts would close his account.

Personal, but not Business, so I remember reading somewhere.

 

[Pale Rider]

Farage is saying the Nat West offer only arrived after he went public over the dispute.

I reckon there's more reputation management than banking going on for both sides.

 

[MrGrumpy]

This refusal of cash really peeves me!

On the other side of this, I know of several places that only take cash.

Should try handing over some of those Scottish notes when down south :-) the looks !

 

[PeteXXX]

Should try handing over some of those Scottish notes when down south :-) the looks !

I once palmed off a Scottish note to a Chinese Takeaway in Wales..... That was proper 'Looks' 😂

 

[oldwheels]

I once palmed off a Scottish note to a Chinese Takeaway in Wales..... That was proper 'Looks' 😂

I never had any problem in England despite my expectations. The only place with problems was in fact Wales.

At home we once made a bomb off a cruise ship passengers as they only had Isle of Man currency which everyone else refused. We did give the local bank a quick phone call who told us it was ok to take it.

 

[PeteXXX]

If your bank account is closed and you are unable to open a new one, what happens to your money? Obviously, they bank can't (I guess) keep it..
Would you have to withdraw it in cash and keep it under the mattress or somewhere?

 

[Ming the Merciless]

If your bank account is closed and you are unable to open a new one, what happens to your money? Obviously, they bank can't (I guess) keep it..
Would you have to withdraw it in cash and keep it under the mattress or somewhere?

Search the Cash for Mattresses scandal