Here’s a comparison of personal injury trust bank accounts across various platforms and banks, focusing on availability, required documents, fees, account opening timescales, and the necessity of branch appointments:
| Banking Services Provider | Personal Injury Trust Accounts | Documents Required to Open Account | Account Management Fees | Timescales to Open Account | Branch Appointment Needed |
|---|---|---|---|---|---|
| Monika Platform | Available | – Proof of ID (e.g., passport, driver’s license) – Proof of address (e.g., utility bill, bank statement) – copy of Trust Deed – Personal injury settlement documentation |
Free of Charge. | Accounts can be opened online within minutes after documents have been received and approved. Accounts provided by Zempler Bank | No, the process is managed entirely online and by telephone. |
| Metro Bank | Available | – Proof of ID – Proof of address – Trust Deed – Solicitor’s letter detailing trust setup – Settlement documentation |
£150 set up fee £5 per month for balances under £25,000 |
Account opening timescale varies; A possible ten-day timescale is quoted on website | Yes, a branch appointment is typically required. |
| Cater Allen | Available | – Proof of ID – Proof of address – Trust Deed – Personal injury settlement documentation – Solicitor’s confirmation |
No account opening or monthly fee. Some transaction fees may apply. | Account opening timescale varies; contacting the bank directly is recommended. | No, documents are sent via post to processing centre. NB: Accounts can only be opened via solicitor or financial advisor. |
| Barclays | Not openly available | N/A | N/A | N/A | N/A |
| Lloyds | Not openly available | N/A | N/A | N/A | N/A |
| HSBC | Not openly available | N/A | N/A | N/A | N/A |
| Nationwide | Not openly available | N/A | N/A | N/A | N/A |
Key Insights:
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- Monika Platform: Offers a streamlined, online process for opening personal injury trust accounts in partnership with various banks. Accounts can be opened within minutes without the need for a branch appointment.
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- Metro Bank: Provides personal injury trust accounts with no monthly fees for basic accounts. A branch appointment is typically required to open the account.
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- Cater Allen: Offers personal injury trust accounts with a standard monthly fee. Opening the account usually necessitates a branch appointment.
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- Barclays, Lloyds, HSBC, Nationwide: Do not openly offer dedicated personal injury trust accounts.
Please note that account opening timescales and requirements can vary. It’s advisable to contact the respective banks directly for the most accurate and up-to-date information.
Recent Developments in Trust Accounts and Banking Services
Recent developments in the UK have significantly impacted the provision of personal injury trust accounts and related banking services, particularly affecting vulnerable individuals who rely on these accounts for financial management.
Bank Withdrawals from Trust Account Services
Several high street banks and building societies have ceased offering trust accounts, citing high operational costs and stringent regulatory requirements. This trend has accelerated since the COVID-19 pandemic, leaving limited options for those in need of such services. Notably, Nationwide Building Society recently announced the closure of its trust accounts, affecting many customers who depend on these accounts for managing personal injury settlements and other funds.
Impact on Vulnerable Individuals
The discontinuation of trust accounts has had severe consequences for individuals with disabilities and learning difficulties. These accounts are essential for safeguarding their finances, ensuring eligibility for means-tested benefits, and covering crucial care expenses. The sudden closure or freezing of these accounts has left some individuals unable to access their funds, leading to financial hardship. For instance, there have been reports of account holders being unable to pay for essentials due to unexpected account restrictions.
Limited Alternatives
With the exit of major banks from the trust account market, options have become scarce. Currently, Metro Bank is one of the few high street banks still offering trust accounts, though they impose fees, including a one-time opening fee and monthly charges for balances below a certain threshold. Cater Allen, a private banking arm of Santander, also provides trust accounts, but applicants typically require a referral from a solicitor or financial adviser.
Regulatory Considerations
The Financial Conduct Authority (FCA) has acknowledged the impact of these closures on vulnerable consumers. While banks have the discretion to choose the products they offer, the FCA urges them to consider the effects on vulnerable customers and to mitigate adverse outcomes where possible. The regulator has engaged with disability charities and account providers to better understand the challenges arising from the lack of access to trust accounts.
Conclusion
The reduction in availability of personal injury trust accounts poses significant challenges for those who rely on them for financial security. Affected individuals are advised to seek guidance from financial advisers or legal professionals to explore alternative solutions and ensure continued protection of their assets.
Some linked articles:
