Research carried out by the National Consumer Council states that people with basic bank accounts are more likely to have financial problems than those without.

These basic bank accounts fail to meet the needs of the customers, as they do not offer facilities such as overdrafts and cheque books. The basic bank account was introduced five years ago, designed for the “poorer” person, and there are now six million accounts in existence.

Claire Whyley, Deputy head of policy for the National Consumer Council stated, “There is a mismatch between the needs of the poorest to keep close track of their income and spending and to avoid debt, and existing bank account design which doesn't help them achieve this.”

The National Consumer Council state that these basic bank accounts should be made more flexible by offering an overdraft and a weekly direct debit facility.

Brian Capon of the British Bankers Association said that these accounts are capable of being more flexible and stated, “The frequency with which direct debits are paid depends entirely on the frequency with which they are originated. Provided there is sufficient money on the account and the debit is in accordance with the customer's instructions, the bank will pay them as they are received, whether this is weekly, monthly or any other frequency.

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