i have recently started a little cleaning job (which i have told IP about) and they pay by cheque weekly. Its mildly frustrating that it takes so long for the cheque to clear each week. To avoid this i was thinking of opening a simple account with Lloyds (cheque are through Lloyds) so that it would clear straight away and then transfer the money over to my current account. However, My IVA includes an over draft and loans for Lloyds tsb and would they allow me to open an account with ithem? Thought i would ask opinion before going through it all online for no reason Xxx
Hi there. I doubt that Lloyds would give you an account as they are one of your creditors. I don't know what the rules are these days, but the last time I was paid wages by cheque the employer had an arrangement with their bank ( Nat West) whereby they would simply cash the cheque in branch for me.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Even if you were able to open an account with Lloyds, it is first worth speaking to your IP to make sure Lloyds are not able to exercise their 'right to set-off' (ie: take money directly from your account without permission to repay the original debt).
Alternatively, I know with Barclays, you are able to draw against a deposited cheque the same day. If it bounces though, the fees are on you if you go OD. So, if they were not one of your creditors, they might be a better option. (Also supposed to be IVA-friendly). Good luck.
My opinions are just that: Based on my experience and being a self-employed IVA customer.
Could you not ask your employer to either pay you in cash or effect a direct transfer of funds? Cheques are so outdated these days, and it is not fair that you have to wait for them to clear.
