Bank accounts 'should be available during bankruptcy'

Declaring bankruptcy should not prevent individuals from being able to have a basic bank account, according to the UK Insolvency Helpline.

Spokesperson Ian Boden-Smyth argues that bank account access should be open to all, whether that means an adult who has declared bankruptcy or a ten-year-old child.

However, he does concede that some elements of bank accounts - such as cheque books and overdrafts - might reasonably be expected to be subject to restricted access for some customers.

"There is no risk involved in giving someone a bank account; it is just a home for their money," he says.

"You can't expect credit facilities, but what I just said is a minimum."

He suggests that banks' reluctance to give accounts to people who have experienced financial difficulties could be due to the lower profit they can expect to make from those individuals.

For instance, there might be a reduced chance of selling them additional products, such as life insurance and mortgages, compared with other accountholders.

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