Following on from the Citizens Advice taking the banks to task for treating bankrupts unfairly by refusing them bank accounts, finance expert Gary Miller-Cheevers has highlighted how prepaid card accounts can be a cost-effective solution.

In a press statement*, the Citizens Advice says that: “People going through bankruptcy are too often being banned from opening even a basic, no credit, bank account. Despite there being no legal reason why undischarged bankrupts shouldn’t be able to access one, only two out of the seventeen banks that provide basic bank accounts offer them to people who have recently been made bankrupt.”

A spokesman for the consumer group highlighted how most people take having a bank account for granted saying that without access to one, basic tasks such as receiving wages or benefits and paying bills can become huge and costly obstacles to overcome, particularly for people who are often at a vulnerable point in their lives.

Gary Miller-Cheevers agrees: “It’s amazing isn’t it? The banks land billions in dodgy sub-prime mortgages, and when the house of cards comes crashing down, who do they penalise? Normal working people!”

“You don’t need these bank accounts anymore, with a speed-e-card, the whole package comes with a guaranteed e-bank account and an online statement and we send you an SMS every time you spend money or go to an ATM, so you know straight away if someone is trying to fraud you. Also there’s no bank charges for failed items and no interest”

Citizens Advice say that among the options available to people who cannot get even a basic bank account are Managed Accounts - a specialist product aimed at people who have difficulty opening a mainstream bank account. A set up fee is around £25-30 and monthly fees around £12.50.

However, says Miller-Cheevers, a more viable option may be the speed-e-card prepaid card account. “The fees associated with having a speed-e-card account potentially works out a lot cheaper than the Managed Accounts, with a set up fee of £7.95 and a monthly fee of £2.99, plus any transaction fees** on top.

“This gives someone all the flexibility of having plastic, so they can pay for purchases and services in shops, online or over the telephone. Plus, the associated e-bank account can be run just like a traditional bank account, giving the user the ability to receive monies in and make payments out***.

He added that anyone aged 13 or over can have a speed-e-card and as a credit check is not carried out, their previous financial history is not an issue.

CONTACT: Gary Miller-Cheevers, speed-e-card.com, CEO, telephone: 0844 879 3199 or 07590 563377, email: gmc@speed-e-card.com

*http://www.citizensadvice.org.uk/press_20100709

** Tariff of charges

***Direct debit facilities are not available on prepaid card accounts