Bank Account still open

[Kazzy E]

Hi Guys. We switched our bank account at the direction of our IP and thought that as soon as our existing bank found out about our proposed IVA, (we have loans and cc's with them), they would freeze the account. I don't use the account anymore but have just been online and it still sits there, accessible and still with a £250 O/D facility. I felt sure they would have closed it by now. Is this normal, or are they waiting for the outcome of our meeting? Kazzy x

[nolongeranxious]

I don't really know, sorry. I had a current account and cc with HSBC and they sent me a letter before my meeting to say they'd frozen my accont and that i needed to send the cards and cheque book back to them.
Sorry i can't be more help x

[Adam Davies]

Hi
They will pull your overdraft facility once your IVA is agreed but will probably keep your account open.
One of the reasons for changing accounts prior to an IVA is that your Bank has a right to take money from your account to make up the full payments on your loans and credit cards,even if you cancel DDs or send only token payments.This could gobble up your salary payments and leave you nothing to live on
Regards

[chardonnay]

Hi There,
Like you I was advised to switch bank accounts, which I did so my salary wasn't swallowed up!! My old account, complete with overdraught is still open when I look on th website and I've been in an IVA for nearly 3 months!! I wonder if they are hoping I accidently pay something in and they will be able to snatch it!!!
Hugs,
Chardonnay

[kallis3]

HSBC closed ours months before our IVA (we were in DMP then). We had a joint account and I had a gold card with them.

Not sympathetic at all, I won't be doing any more business with them!

[Adam Davies]

Hi
HSBC and First Direct are known to close accounts of people in an IVA even if you owe them nothing.They regularly search the Insolvency Register to do this
Regards

[kallis3]

What nasty people they are, particularly if you don't owe them anything!

[plasticdaft]

Our tsb account is sitting there with £23 in it plus a 700o/d. tried to get the 23 out but the machine says we are not authorised to withdraw the cash. Thought it would have kept our cards but nope,just wont let us to the money!!!

[Kazzy E]

Hi again, thanks for your replies. Plasticdaft, that will probably apply to us then with TSB if we attempted to draw from the account. Luckily our three a/cs are all at NIL balances so nothing to worry about. Just thought it was strange that they still allow internet access etc. I will wait for my meeting, then will probably write to them to close the accounts. Kazzy x

[rockbottom]

does anyone know if all banks check the insolvency register searching to see if their customers are on there, im with the halifax but dont owe them anything, i would like to keep that account as it has a debit card and everything is set up already, also if you are in an iva am i right in thinking you cant have an overdraft facility on your account, would the halifax think it was odd if i asked them to remove it, would that maybe prompt them to search the register.

[Viki.W]

Hey rb, hope you're ok. When I transferred my account to natwest they were going to give me an overdraft but I said I absolutely didn't want one, the guy didn't seem too bothered, probably thought I just didn't want to get into debt(if only he knew[:(]) so I shouldn't think you would have a problem. I've only heard of HSBC and FD searching the Insolvency Register. X

[Soulgrowth]

Both my RBS and BOS business accounts are still open and seem to be functioning normally although they weren't my main creditors, just through association. I've tested the water and put a bit of money in and written a few cheques and it all seems ok ... but I wouldn't trust it with any large sums of money ... that's if I had some!

Debbie

[rockbottom]

as always thanks guys

rb