'Vulnerable' Scots struggling to open bank accounts with 160,000 going without

Citizens Advice Scotland says too many high street banks are failing to offer "readily accessible" no-frills accounts.

"Vulnerable" Scots are struggling to open bank accounts with an estimated 160,000 still going without any banking facilities, a charity has warned.

Citizens Advice Scotland (CAS) said Basic Bank Accounts – designed to help people who are financially vulnerable to manage their money – are still too difficult to access.

The charity has published a report, Holding To Account, which finds that of the 12 banks which are supposed to offer these no-frills accounts, only two of them do so in a way that is readily accessible.

Sarah-Jayne Dunn said, CAS Financial Health manager, said: "Across the UK there are 1.1 million people who do not have a bank account.

"That’s around 160,000 people in Scotland. This is the ultimate form of financial exclusion today.

"People who don’t have bank accounts include those who’ve been made bankrupt, refugees, ex-prisoners, homeless people and victim-survivors of domestic abuse.

"In other words, precisely the sort of people who are already financially vulnerable and need most help.

"if you don’t have a bank account, basic everyday tasks become impossible. You can’t receive your wages or any payments from benefits. You can’t get a tenancy agreement.

"Everyday bills are more expensive as you can’t take advantage of cheaper deals offered to those who pay by direct debt, and you’re blocked from accessing affordable credit.

"Banks are supposed to offer a basic form of account to such people. But in our research we’ve found that these accounts are difficult to access.

"Of the 12 banking institutions who offer these life-changing accounts, only 2 are easily accessible. Most only allow very limiting options of online-only applications or require you to physically go to a branch to open one, and the majority are not advertised. You can’t apply directly for a Basic Bank Account, it‘s up to the bank if they offer you one.

"Everyone who needs one should be able to get a Basic Bank Account. We are calling on both the UK and Scottish governments, financial firms, the financial regulator, charities and other consumer bodies to do their part.

"Basic Bank Accounts should be made more accessible so that anyone can apply and be financially included in our society, once and for all."

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