Any advice/tips would be much appreciated please: Sole trader in financial difficulty - how best can I ensure continued banking facilities in case I lose current ones shortly:
Background: In difficulty for about 18 months due to recession-related income drop. Unable clear overdrafts on business & personal accounts (should be in CR for 30 days p.a.) and term loan is on temporary token repayment, up for review shortly. Credit card with same bank ditto. Hope they will give more time - long time with same bank/branch and NEVER went outside T & Cs. But some say "they may pull the rug out from under you and close your accounts". So am really worried – how can I continue to operate if I don’t have banking facilities??
Deadline looming: Friend saw newspaper notice that from April 2011 my bank (BoI) will withdraw online banking facilities and discontinue direct debit payments etc on accounts not being operated within their T & Cs. This month I fall into that category as both accounts will have been continually overdrawn for just over 12 months.
For business - Must have online banking - not only for day-to-day convenience but because I sometimes receive fees through Paypal. Must continue to have a cheque book. Business/Personal - Must be able to continue direct debits (car insurance, broadband, waste collection, etc, & VHI – though the latter may be abandoned as unaffordable) as now cannot pay annual amounts up front.
My thinking Would like to open personal current account with another bank so that if I lose part or all of my banking facilities with BoI, I will be able to move direct debits over and attach new a/c to Paypal for receiving payments. I will NOT be seeking an overdraft facility or credit card. I favour approaching ptsb since they also issue the Visa Debit card.
Questions:
1. Should BoI close my accounts in due course, I assume it would be impossible to open a new business account anywhere, but there would be no operational problem for me (other than messier book-keeping) in conducting everything through the new personal account – all is in my own name only, business simple, turnover modest. Any problems around that?
2. What questions will I be asked when applying for a personal current account? Info online makes it sound simple – provide photo ID and utility bills – but I hear some people with damaged credit records are unable to get new bank accounts.
3. I read somewhere that if you are self-employed some banks, incl. ptsb, insist you open a business account. Will they find it strange that I want to leave my accounts active (though who knows for how long) at BoI but open a new account with them for “some other personal business”. How best should I present my request, so as not to set off unnecessary alarm bells?
4. Do they do a credit check even when overdraft facility or other credit is not being applied for? If they do, and see some late payments and a series of obviously token payments, will this affect my ability to get an account with them? Am not sure if a credit card default is already registered.
Sincerely sorry for long post. Cant think straight on this issue due to associated stress, & want to give my full position. Don’t like to ask accountant as have not been able to pay him for ages! Thanks very much for any tips/guidance.
Background: In difficulty for about 18 months due to recession-related income drop. Unable clear overdrafts on business & personal accounts (should be in CR for 30 days p.a.) and term loan is on temporary token repayment, up for review shortly. Credit card with same bank ditto. Hope they will give more time - long time with same bank/branch and NEVER went outside T & Cs. But some say "they may pull the rug out from under you and close your accounts". So am really worried – how can I continue to operate if I don’t have banking facilities??
Deadline looming: Friend saw newspaper notice that from April 2011 my bank (BoI) will withdraw online banking facilities and discontinue direct debit payments etc on accounts not being operated within their T & Cs. This month I fall into that category as both accounts will have been continually overdrawn for just over 12 months.
For business - Must have online banking - not only for day-to-day convenience but because I sometimes receive fees through Paypal. Must continue to have a cheque book. Business/Personal - Must be able to continue direct debits (car insurance, broadband, waste collection, etc, & VHI – though the latter may be abandoned as unaffordable) as now cannot pay annual amounts up front.
My thinking Would like to open personal current account with another bank so that if I lose part or all of my banking facilities with BoI, I will be able to move direct debits over and attach new a/c to Paypal for receiving payments. I will NOT be seeking an overdraft facility or credit card. I favour approaching ptsb since they also issue the Visa Debit card.
Questions:
1. Should BoI close my accounts in due course, I assume it would be impossible to open a new business account anywhere, but there would be no operational problem for me (other than messier book-keeping) in conducting everything through the new personal account – all is in my own name only, business simple, turnover modest. Any problems around that?
2. What questions will I be asked when applying for a personal current account? Info online makes it sound simple – provide photo ID and utility bills – but I hear some people with damaged credit records are unable to get new bank accounts.
3. I read somewhere that if you are self-employed some banks, incl. ptsb, insist you open a business account. Will they find it strange that I want to leave my accounts active (though who knows for how long) at BoI but open a new account with them for “some other personal business”. How best should I present my request, so as not to set off unnecessary alarm bells?
4. Do they do a credit check even when overdraft facility or other credit is not being applied for? If they do, and see some late payments and a series of obviously token payments, will this affect my ability to get an account with them? Am not sure if a credit card default is already registered.
Sincerely sorry for long post. Cant think straight on this issue due to associated stress, & want to give my full position. Don’t like to ask accountant as have not been able to pay him for ages! Thanks very much for any tips/guidance.
If the other banks are doing the same, things aint looking good for me! Why do they have to be so tough on the little people in trouble... What risk would new bank be running, if no credit facilities required? SOMEhow, then, i have to save at least basic banking facilities with BoI. If overdrafts are cancelled & sums o/drawn converted to term loan, I would in the short-term be able to make only token repayments... Re direct debits... suppose i have to deal with each as best i can. Wonder what chance they would allow me keep online banking on business account since if I cannot receive certain payments through Paypal i will lose even MORE income... Oh, no doubt there is a solution to everything - just when stressed cant easily see it!