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(EstateNewsWire.com, December 27, 2012 ) England, U.K -- The new bankruptcy laws in England and Wales are in the midst of being changed in order to allow easing of undischarged bankrupts to get bank accounts.
The maneuver was brought forth by the Insolvency Service, and is intended to restrict some of the mobility and maneuverability of those in bankruptcy can take in making a claim against a bank.
Currently, there are no laws that are in place which prevent an individual from having a bank account, even when in the midst of claiming bankruptcy. Due to the trustee in the bankruptcy being able to pursue the bank for loss of capital, many do not bother even offering service to those individuals.
A co-op revealed that it was pulling its offering for persons recovering from bankruptcy, and in doing so Barclay is the only high-street lender which allowed undischarged bankrupts to sign up.
Managing Director of Retail Banking at the Co-op, stated that the decision stemmed from the reality that it caused an unlevel playing field in the industry. That meant that lenders currently had an unfair advantage when it came to market shares of the bank account market.
Business Minister Jo Swinson stated that those who hold the chips must recognize the law can make it difficult for a bank, and that is the reason rules are being amended. By making such an amendment, it makes it so all benefit from a simpler process.
"Having access to a bank account means being able to make vital transactions quickly and safely, avoiding the risk of carrying around large sums of money. Most of us take these everyday tasks for granted, but for bankrupts attempting to make a fresh start, they can be a whole lot more stressful," she added.
The move will still assert that lenders have the capability of deciding whether or not to offer accounts, and she is confident it help offer a “new lifeline to vulnerable people who have struggled to access basic financial services".
Gillian Guy, Citizen's Advice Chief Executive, states that it is essential that individuals in the United Kingdom are afforded basic services such as bank accounts.
She remarked: "The proposed change in the law is very welcome and will mean there is no reason for banks not to provide accounts to these customers. The change needs to be brought in as a matter of urgency to help undischarged bankrupts who are currently excluded from mainstream banking."
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Source: EmailWire.Com 
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