EuroDebt partners with Secure Trust Bank to provide Prepaid Current Account for any UK resident

July 2009

EuroDebt has established a new partnership with Secure Trust Bank to provide clients with an innovative current account facility, including a MasterCard® prepaid card.

Secure Trust Bank, part of the Arbuthnot Banking Group, has designed the bank account and pre-paid card to appeal specifically to people in financial difficulty, providing a genuine alternative to traditional bank accounts.

"The reports of excessive bank charges for current accounts have been rife for years and we have been particularly concerned that families and individuals who are trying to get their finances back on track are facing exorbitant charges simply for having a current account", confirmed Kevin Still, Director, EuroDebt.

"We have therefore been looking to develop a proposition that we could offer to any of our clients which gives them the normal flexibility of a current account, but with low and totally transparent charges that don't penalise people in financial difficulties.

"We believe it will be an exceptionally strong proposition, giving brokers and intermediaries who are offering debt solutions to their clients another budgeting tool to help them manage their finances better," he said.

The partnership with Secure Trust Bank will see the Prepaid Current Account launched to EuroDebt clients mid July 2009, providing a number of powerful benefits.

The account provides a cost-effective and flexible current account solution for those who are already in arrears on credit accounts, and face higher charges on most traditional bank accounts as a result.

Owen Woodley, Deputy CEO of Secure Trust Bank, said: "We are delighted to be working in partnership with EuroDebt to deliver such an innovative proposition to help customers who are facing financial difficulty in today's uncertain economic climate.

"For more than five decades, Secure Trust Bank has worked with customers to ensure that their financial needs are provided for and this account is a new way of bringing banking services to everyone, regardless of their status and credit record."

Kevin continued: "More often than not, these types of higher-risk individuals will face high and varying charges on their current or basic bank account.

"But this seems immensely unfair when they are trying to manage their already stretched finances as well as possible. Our goal, in partnership with Secure Trust Bank has been to create a current account that gives holders certainty in terms of costs - and fair costs at that," he said.

Crucially, the account will offer virtually 'guaranteed acceptance', provided the applicant can prove their identity and residence. Their current level of debt will not affect their application, unlike other financial services.

"We find many new clients who come to us for assistance on a Debt Management Plan or an IVA have a concentration of debt with their bank, in the form of credit cards and loans," explained Kevin.

"One of the first things we advise them to do is protect their salary or wages by transferring these to a new bank account. With the launch of the new Prepaid Current Account we will be able to set this up at the client meeting enabling us to act on all of the client's unsecured debts much faster.

"We look forward to launching the account, through our franchise network and introducers, and direct via our website, in mid-July."

A summary of key benefits include:

Budget Planning

Account holders can only spend as much money as is loaded onto the card, meaning it is very suitable for clients who need to closely monitor their spending - especially those attempting to regain control of their finances.

Security

Since the card can be cancelled in case of loss, it is much more secure than carrying the cash equivalent. It also uses Chip&PIN technology, giving account holders added protection from fraud.

Convenience

The card can be used in any shop displaying the MasterCard acceptance mark, for Internet purchases, and to take money out of cash machines in the UK.

Multiple Cards

The added convenience of having more than one card on the same account also allows for even better budget planning, the customer can allocate a budget to the second card if needed.

No Credit Check

Since there is no credit agreement or credit check the card is ideal for clients with damaged credit histories.

Transparency

A summary of standard account charges include:

• £25 - A one off account activation fee (includes first month's management fee)
• £12.50 - Monthly account management fee
• £0.50 - Each time money is withdrawn from an ATM

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