The research has found that most of Britain's banks are lumping bankrupts in with fraudsters and refusing them even their simplest accounts.
Since 2003 542,834 people have been forced into bankruptcy and with the economic downturn still taking its toll this figure is only set to increase. However those attempting to get their lives back on track are forced to remain part of a banking underclass until their bankruptcy order has been discharged. With this process often taking many years, people are left with nowhere to turn.
Natwest offers no accounts for people within the six-year bankruptcy term, while Lloyds TSB will only offer discharged bankrupts a cash account that does give them a cash card, but no overdraft facility. Even Nationwide, Britain's biggest mutual excludes bankrupts from all its accounts within the first six years.
Jessica Bown at Talkaboutdebt.co.uk said: “Since the Government introduced basic bank accounts over half a million people have fallen into bankruptcy. For most this is a last resort, accompanied by a feeling of shame that is perpetuated because they are refused access to even the basic banking facilities necessary for modern life. By excluding them in this way, the banks are effectively treating them like criminals and making it harder for them to pick up the pieces of their lives and improve their financial situations.”
Talkaboutdebt.co.uk is calling on UK banks to revise their practices by enabling undischarged bankrupts to receive basic banking facilities. Those wishing to voice their support are encouraged to visit: http://www.talkaboutdebt.co.uk/petition/bank-account-petition
