Bank accounts once IVA approved

[dcl]

I was just wondering that if you are in an IVA and you owed money to a bank which as the IVA is approved they are bound by would you then be able to open a basic bank account with them or can they still offset their money from your account.

[aguise]

Better to go with someone not associated with your debts, dont know that they could take the money from your ac but safer not to find out.
Ang

[Oliver]

Once you are in an IVA you are protected from the right of offset by the agreement. However, all accounts where you owe money to are likely to be frozen and you are unlikely to be able to open an account with one of your creditors.

Best Regards
Oliver

Thomas Charles and Co Ltd.
Experts in personal debt solutions.
Read customer feedback at: www.thomascharles.com/about_us.asp

[dcl]

I'm not intending to go back with my old bank account but I think it poses an interesting question as the an IVA is a legally binding agreement. If you did get a basic account with a bank you owed money would they be legally allowed to take your money to offset the debt or not. Has anyone stayed with their old bank (that they owed money to) during an IVA?

[Oliver]

As I said the IVA protects you from the right of offset so there is nothing stopping you having a basic (no credit product) account with one of your creditors, as long as the creditor approves it.


Best Regards
Oliver

Thomas Charles and Co Ltd.
Experts in personal debt solutions.
Read customer feedback at: www.thomascharles.com/about_us.asp

[dcl]

Sorry I think our posts crossed. I was asking because I am currently with HSBC so I wanted to open a new account in case HSBC closed mine. I did get a new account with the Alliance & Leicester but I also tried Natwest (who I owed around £30k to out of a £64k debt) and they accepted me for a Step (Basic) Account but phoned me to offer me the full current account which I declined.

[Adam Davies]

As Thomas Charles states you are protected from this BUT banks may still try to do this,and it has happened to myself and a couple of other people on this forum.It,s not worth the hassle trying to get the money refunded[had to go to the banking ombudsman].So open an account with a creditor that you do not have a debt with.
Regards

Andy Davie
IVA.co.uk Spokesperson and site manager
(aka Neverending)

Please check out my blog: http://andydavie.blogs.iva.co.uk

View my profile here:
http://www.iva.co.uk/andy_davie_profile.asp

[Oliver]

I have to agree with Andy and would encourage everyone to open an account with a company that they don't owe money to.

Best Regards
Oliver

Thomas Charles and Co Ltd.
Experts in personal debt solutions.
Read customer feedback at: www.thomascharles.com/about_us.asp

[freelili]

Hi

HSBC?first direct have been known to close accounts of people that are in IVA even if they dont owe them any money.

LILY

fly me beyond the distant star, I will wish on tonight to see you smile just once more to know youre there.

[Oliver]

That's an excellent point Lilly. HSBC and First Direct have both been known to close accounts of people who are in IVAs even if they are not one of the creditors. I would reccomend avoiding both of these.

Best Regards
Oliver

Thomas Charles and Co Ltd.
Experts in personal debt solutions.
Read customer feedback at: www.thomascharles.com/about_us.asp

[Hunter1]

Hi dcl,

I was with HSBC and owed them about £14K. I took the advice on this forum and opened a basic account with Nationwide before starting my IVA and switched my salary to the new account.

As soon as I wrote to HSBC saying I was insolvent and proposing an IVA they froze all my accounts. If I hadn't arranged another account I would have been completely stuffed as my salary would have been swallowed up by HBSC.

I'm certain they wouldn't have given me the money back without a protracted fight.

My advice - go with Nationwide but apply in person at a branch as you will definatley be accepted for at least a Basic Account. Takes 10 minutes and my local branch have been great.