Anas Sarwar
Main Page: Anas Sarwar (Labour - Glasgow Central)Department Debates - View all Anas Sarwar's debates with the HM Treasury
Basic Bank Accounts (Scotland)
Anas Sarwar Excerpts(13 years, 3 months ago)
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Sheila Gilmore
I certainly agree. I shall speak later about how we can move this forward, and one way is by improving the practices of some banks in that regard.
There are several main reasons why people cannot access basic bank accounts, of which that may well be one. Another is having a poor credit history or, indeed, no credit history. I shall quote one example from the CAS survey:
“I had a full driving licence but never had a bill in my name as I live with my mum and dad. I am 28 years old and can’t get a bank account.”
There are people who have not taken any credit in the past and do not have a record.
Anas Sarwar (Glasgow Central) (Lab)
I congratulate my hon. Friend on securing this debate. I was a dentist in a previous life—I am a glutton for punishment, perhaps. I have a similar story. We employed a new dental nurse who had no credit history at all. She did not have a driving licence—she was straight out of school—or her birth certificate, which had been lost in her parents’ messy separation, so she was not able to open a bank account. Instead, every week she had to take her cheques to one of the local pawnshops and pay £3.50 to get her money. That is a simple story, but the situation affects thousands of people across the UK.
Sheila Gilmore
I thank my hon. Friend for that example. It is important to understand that these things do still happen in this day and age, although it might be surprising to some people.
On the inability to meet some of the identity requirements, the Financial Services Authority permits use of a wide range of identification, but local advice agencies in my constituency have told me that meeting the requirements can be problematic. Not all banks operate to the FSA guidelines. They demand either a passport or a driving licence, which not everyone has. Such things as a letter from a housing association or benefit entitlement documents are not accepted, so the whole process takes a long time.
Other people are in a situation where they owe money to a bank. Sometimes it is appropriate that they open up a basic bank account elsewhere to enable them to function while they are dealing with previous debts. There is a growing difficulty with the consolidation of banks, in that there are too few banks in many places. In some small towns in Scotland, there is very little choice.