People ‘unable to get accounts due to bankruptcy’

Bankruptcy is one of the reasons over a million people are unable to get a bank account in the UK, new research suggests.

The study by Consumer Focus shows that circumstances such as bankruptcy are causing people to miss out on the cost-saving benefits of using banks.

Those questioned also highlighted existing debt as a reason behind them not being able to get an account.

Many of those affected survive purely in the cash economy and are unable to put their funds into a safe place.

Mike O’Connor, chief executive of Consumer Focus, said: “Life without a bank account can cost time, money and convenience. It is another stark reminder that those with less often end up paying more.”

People who are taking advantage of other banking services should be aware of the added cost that could come from borrowing money, with the average rate on a credit card being 18.7 per cent APR, according to Moneyfacts.co.uk.

By James Perkins