can you help advise me to find bank account

[christian.p]

Hi, my son was diagnosed with a lung disease and I needed to take several months off work to help my wife with his care. As a result, my well paid salary was reduced to match my limited income and as a result I accumulated lots of debts (credit cards became a source of income etc..). I contacted CCCS and set up a debt management plan, which worked for a while, they then suggested an IVA. I then began speaking with an IP who began setting this up for me. In Sept 06, my son was then added to the Heart and Lung Transplant list, as this was a devastating time, my employers made me redundant with a good payout (£30,000+). My IP then set up an IVA with a one off payment of £23000, which was accepted by my creditors. This is running for 6 months - ending on the 15th May 07. I have no further actions to take other than ensure I do not have an overdraft and take out further credit. However, today I have been contacted by first direct who I now bank with, without owing any monies to!. They have now advised me that I must close all accounts with them due to the IVA. My questions are:
Is this usual practise?
Is there anything I can do about this ?
Is there an appeals process?
I am having trouble finding another bank who will offer me a basic Bank account, can you help advise me?
Will this be easier once the IVA is completed on 15th May 07?

I Am also about to start a new job on the 2nd April - finally!, however I need to open an account prior to starting work, the Business analyst role is also extremely well paid (50k+)and will help me to start a fresh from a financial point of view, can I use this to 'help' make the banks make the decision in my favour ?

All help and advice is very much appreciated.

Look forward to hearing from you.

[laleanne1]

Hi Christian

Quite a few people have had the dreaded letter or phone call from First Direct to inform them they are closing their account because they are in an IVA. I believe first direct and HSBC have recently introduced a part in their terms and conditions about not dealing with anyone involved in an IVA.

I myself am 6 months into my IVA and opened an account with HSBC before the IVA was approved but due to all the posts on this website I decided to open another account which has not been easy. I applied to Natwest who informed me I was bankrupt which is not the case, so I had to take all my IVA information into a local branch and explain my situation, and to my surprise no-one in the branch had ever heard of an IVA. However I received a letter this morning to state an account has been open for me.

So there are banks out there that will take you, you could try some of the following:

Natwest
Nationwide
Halifax
Co-operative
Lloyds TSB
Abbey

As long as any of these are not included in you IVA they should be able to help, but you best option is not to apply over the phone go to the bank yourself with all your info and take it from there. Hope this helps


l morris

[go_4_broke]

Hi christian

Here's a link you might find useful -

www.fsa.gov.uk/pubs/public/bank_account.pdf

-Best

'5 years sticking my head into the Lion's mouth of debt !'

[i_a]

Hi Christian,

I would recommend Nationwide as they sorted one out for me in 10 minutes face to face.

However I only have a cash card - no debit card or cheque book but do get Internet Banking.

[christian.p]

Thanks for everyones responses, I have had a nightmare over the past 24 hours with rejections coming from everywhere!!!
Following on from the earlier responses, Barclays also appear to offer a basic account - but it is basic - DDs allowed - SO's or Internet Banking not!

At least I can have my wages paid into an account.

Thanks again for everyone taking the time to respond.

Its a great help knowing that you are not alone in this debt nightmare - we have enough stresses and worries taking care of our sick son.

[:)][:x)]

[dcl]

I have been in my IVA for 3 years and after hearing the comments about HSBC with whom I opened an account just as I entered my IVA I have decided to open a second current account in case HSBC decide to close mine. I applied online for a Alliance and Leicester Premier Direct Current Account and within minutes via email they confirmed I couldn't have the Premier account but they would offer the standard current account with Visa Electron card and cheque book. Might be worth giving them a try if you're still struggling.