Bank charges

[fedup and broke]

My proposal for my IVA is in process. One of my creditors is my bank lloyds tsb - for which I have an overdraft of £1000 - however the bank took out charges at the beginning of april sending me £300 over my overdraft then bounced payments due to come out. I received a banks statement yesterday and they are charging me for them sending me overdrawn - a further £200 - I dont have the money to bring my overdraft back in line and feel like the bank are not helping. I did go in a see my bank manager and he just shrugged and said he couldnt help!!! Will this affect my IVA?

[Oliver]

This shouldn't have too much of an impact on your IVA as these monies will be included in your agreement.

[kallis3]

Hi,

HSBC were the same with me. We had a loan with them, and when I changed bank accounts originally, I cancelled the Standing Order. They reinstated it telling me that I couldn't cancel. They continued to take out money every month, thereby making my overdraft worse, then they would put the payment back but charge me £30! It didn't matter that I had told them we were havingt difficulties. This only stopped when they passed the debts on to Robinson Way. HSBC then closed the account and so we didn't have that problem anymore. Perhaps when your IVA is set up you can reclaim the charges?

[emma_t]

I don't think you will find the bank helpful if they are aware you are proposing and iva, but it should not matter with regards to acceptance of your iva as they will clam for whatever ammount your balance is.

Have you set up a new bank acount with another bank who is not a creditor?
I did this straight away and then just left hsbc to add whatever they liked the old account with the overdraft as it was included in my iva.

[kallis3]

Hi,

Yes I have. Did it some time ago and felt so much better to see a credit balance for once when my salary went in and also to know that mortgage and other utilities would be paid.

[angela18]

tsb are same with me, took bank loan payment when nothing in bank!! advised Melanies team and they said would be ok

[fedup and broke]

I am going tomorrow morning to open a basic bank account so I can pay my salary into. Do I hav to inform the bank that I am currently considering IVA?

[kallis3]

I don't see why you should as all you will be able to get probably is a basic bank account with just a cash card. We don't have a cheque book and no overdraft at all. Salaries get paid in there and all direct debits are set up. The fewer people who know about my problems the better.

[Moneystinks]

We didn't tell the bank e just requested a basic accoutn so that we could transfer the 'surplus' funds (we wish lol) over to it and use this account day to day so we were not spending the bill money.
Good luck.

[wen]

I had a loan with HSBC, and although they say you can't cancel the Direct Debit.. you can... (do it through internet banking). They keep reinstating it, but if you check every month before your due date and cancel it then you avoid the £25 DD bounce charges.