Do banks normally freeze current accounts

[jj.a]

Do banks normally freeze current accounts whn IVA practioners advise them you have applied for an IVA, and seek to negotiate payment terms? Is this allowed?

[Adam Davies]

Hi
Not usually but a bank has a right to withdraw banking facilities at anytime,normally with notice
What bank are we talking about ?
regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[bagpuss]

Our account with LLoyds was frozen when we did our IVA...they where one of our creditors and we owed then about 11k (i think) overdraft....we were prepared for this though and had sorted out a new account with Alliance and Leicester prior to the IVA. They still sent me statements untill the IVA was completed but no requests for money.

Angie xx


My IVA Story......http://bagpuss.blogs.iva.co.uk/2007/09/ ... iva-story/

[Soulgrowth]

Hi jj.a ... if your current bank is one of your creditors it is a good idea to change your banking arrangements as soon as you start going down the road of an IVA. I had been with LloydsTSB for almost thirty years and I was really surprised at how moving away from them caused me a huge psychological rebirth when I changed to Nationwide on the advice of my IP as soon as I started going down the route of an IVA, it made me very aware of just how important one's relationship with one's banker is. BUT it made for a really fresh start to start with a new bank ... it was like a new, fresh beginning for me [:)]

Debbie

www.babynamings.co.uk

www.soulgrowth.co.uk

[bagpuss]

I agree 100% Debbie...we had been with Lloyds for years and it did feel odd...but it was soon a great feeling to check my account and not see DR before the £££....it really did feel like a fresh start....with the only direct debts being household and mortagage...non of those C/C, loans etc...

Angie xx


My IVA Story......http://bagpuss.blogs.iva.co.uk/2007/09/ ... iva-story/

[ray_a]

The best bit of my change of banking arrangements is that I get nice letters from them rather than nasty ones!!!!!!

[Soulgrowth]

Here, here ... and they offer you a cup of coffee when you go into the branch ... instead of throwing it AT you [:D]

Debbie

www.babynamings.co.uk

www.soulgrowth.co.uk

[bagpuss]

the only problem i got with my new bank was everytime i went in the poor girls at the till were made to ask every customer..."do you have a mortgage"....after months of them asking me and me saying thanks but we are tied in, i eventually said yes and i would like to know if there is anything you can offer me. They arranged a mortgage advisor to ring me and i told him about the IVA we had done and everything else...he said, ohh well as you are bankrupt we cant help you....i said we aint bankrupt we did an IVA....his reply was..."dress it up how you like".....charming man.

The next day i had to pay some chq's in and again the lady asked..."do you have a mortgage"...i could have swore but didnt.

Angie xx


My IVA Story......http://bagpuss.blogs.iva.co.uk/2007/09/ ... iva-story/

[Soulgrowth]

Perhaps we all should have little badges saying "I'm a Bankrupt, so don't bother trying to lend me any money!" [:D]

Debbie

www.babynamings.co.uk

www.soulgrowth.co.uk

[jj.a]

Thanks everyone, for their input. We've set up a new account this morning, but, to be honest, my feeling was the bank weren't exactly welcoming.

Andy, the bank I was referring to in my first message was the Halifax - I tried to reply yesterday but as I've just joined the site, I had trouble logging in.

[Adam Davies]

Hi
The problem is that Banks know that they will not earn any money from you as it's a basic account.You almost feel that they are doing you a favour.
If you can afford £12.50 a month then it's worth opening a Think Banking account,you will get a Maestro debit card and the account is very useful for people in IVAs as your money is split between two accounts,one to pay all your direct debits and standing orders and the other is to put your spare cash in that you access via your Maestro card.
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[zarron]

I was with Llyods TSB when I started down the IVA route and had been with them for 42 years! (my mum had opened my account with them when i was born!)

Closing my account and moving to a Nationwide Flexi account in preparation for my IVA did feel very strange after being with a bank all that time but as I had my loan and credit card with them it had to be done.

I totally agree with Debbie in that being with a new bank does help give you a new attitude and I did feel I was starting out afresh with a new attitude to money and spending which i think is a good thing when you have had been living under debts for so long!

Have since moved again to Halifax Easy Cash (for the Electron card) where I plan to stay now and make my new banking home!

[Soulgrowth]

Hi Zarron ... seems we have followed similar paths in life [:)]

Welcome to the forum

Debbie

www.babynamings.co.uk

www.soulgrowth.co.uk