hmm, i cancelled all of my dds to creditors last week. my bank is with lloyds (currently getting it switched) and i have 1 credit card with them. they seem to have taken the minimum payment from my current account to pay my card without my permissiona as the dd was cancelled for them too!! they dont yet know im trying to do an iva. can they do this? thanks R[?]
Unfortunately they can. They will keep on doing it as well until such time as your IVA is agreed when they will probably close the account.
HSBC did it to us with our loan. Didn't matter that the money wasn't there to pay it!
Don't worry about the charges you will get, they will all be covered by an IVA.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Hey rochelle, unfortunately I think they can because it's the same creditor. I may be wrong though. If you've gone overdrawn then that will be included in the IVA. Did you withdraw your money out to pay into your new account?
oh the cheeky bank!!lol. um its alway in an overdraft but as i just got paid into that bank its not taken me ove rit thankfully. Ive done all the paperwork for my new bank account but not had card, paying in book etc through yet and dont want to with draw all my cash as dont think this is safe when i have no where to put it plus all my rent, council tax etc direct debits are stil set up to come out of lloyds account. they dont even know im trying for an iva yet, surprised they can just take it from account like that.thanks for info
In the end rochelle I suppose it makes no difference as they are all one lender and although the overdraft is getting bigger the credit card balance got a bit smaller.
HSBC did the same to me up until my iva was approved, as others have said.
Good luck with things and I found the forum a great support to me while I was going through the iva process, so keep in touch x
Be positive & look after yourself, there are more important things in life than debts....
HSBC did this with my loan aswell even though i cancelled the DD they reinstated it to take the payments regardless of no money being in there to pay it.
Its probably a way in which the Bank can still state to regulators that it is a performing loan!
Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
I had an account with lloyds as well pre iva. They did the same though I just left the loans to default. They still took them over the overdraft and added charges, but it made no difference it was added to the iva.
It is so stressful at this point, I remember well, but stick with it you will be fine, do as your appointed company says, and if worried about anything just ring them they should always advise you or explain if you dont understand. (I must have been a right pain lol)
and of course we are all here for support anytime.
Hi, this happened to me with Lloyds too. Don't worry, it will all be sorted out in your IVA. The sooner your new bank account is ready the better. You don't have to worry about being overdrawn again which is a lovely feeling!
