A new report has shown that people without a bank account pay an extra £485 per year for everyday bills and services.

An estimated 1.2 million people in the UK do not have a bank account, and they therefore miss out on discounts offered to those who pay bills by Direct Debit.

Areas in which these people are worse off include:

  • energy bills and broadband providers, which offer discounts to those paying by direct debit
  • mobile phone providers, which offer better deals via direct debit than via pay-as-you-go
  • limited access to credit, which may force them to turn to ‘doorstep loan’ providers, offering cash loans at high interest rates.

People can be refused for a bank account if they have poor credit, or lack sufficient ID.

For more on this, see the BBC article.

 

The Stop Loan Sharks national newsletter has been published recently, if you are interested in this subject area. It includes:

  • Loan Smart – a new tool developed by a charity to help consumers check whether their loan is regulated by the Financial Conduct Authority
  • Free Stop Loan Sharks teaching resources

You can download the newsletter by clicking here. Stop Loan Sharks Winter Newsletter 2019 Final

To report an illegal loan shark, call 0300 555 2222