First Direct Closing My Account

[johndoe]

Hi,
I've just taken a call from First Direct, they where the bank I chose to use as my new bank at the time my IVA was being setup. They called to inform me that they are closing my account giving me 60days notice. They found that I have an IVA via a public register and say it's their policy to not do business with people who are on an IVA or have been declared bankrupt.

I am now very worried that I will struggle to find another bank who will give me an account since the IVA has been processed I assume all checks the new bank do will show up the IVA and my credit history.

Can anyone tell me first of all if First Direct can just do this, I think I already know the answer because as a business they can choose to do business with anyone they please (or not as is happens). It's just so very frustrating to be thrown this curve-ball now.

Also is there any advise on who I can get a new account with that won't give me a problem. My financial problems were origionally with Natwest, so it can't be anyone in the RBS group.

Thanks
Ian

[kazzafunk]

Hi John - Yes I'm afraid HSBC / First Direct do this to people even when they are not a creditor.

You can try Co-op cashminder or Yorkshire Building Society. I believe Nationwide are also IVA friendly. I am with the Co-op and have had no problems so far.

[KAYKAY]

You could try the Santander Basic Account

[nepensioner]

Hi John
Depending where you are in the country, Yorkshire Bank Readycash Account are also very good...

[ginger3232]

Just to add - Barclays as well

As Kazzafunk mentioned this is normal prctice for HSBC/First Direct - Can i ask who recommended HSBC to you?

[herbekj]

Todays bankrupts are future debt free, surplus cash customers.

Banks should remember that.

[frost]

Hi, we are with the co-op and they are great, totally IVA friendly.

[kaza]

Hi we were with First Direct prior to IVA and didnt owe them anything, they were awful with us when we told them about the IVA, closed our accounts and were very rude about the whole IVA. We went with LLoyds who so far have been great but the dont know about the IVA.

As herbekj has said......we are the future debt free (learnt our lesson in a big way) I cant wait to reject their credit offers lol xx

[johndoe]

Thanks everyone for the advise, I will have a look at each of the suggestions and see which is best. I really rely on internet banking to be able to keep a close eye on my account to make sure I know what's happening at all times.

To: ginger3232
They weren't recommended to me, I had a look around to see what was the best account I could find at the time, they were online which suited me perfectly so I chose them.

[kazzafunk]

It's a shame they are that way. Not many people on here will have a positive word to say about HSBC / First Direct. They've been great with me for 27 years then turned into a nightmare bank.
I do my banking on-line with Co-op - it can be a couple of days behind though. I keep a spreadsheet on my laptop of all my expenditure so I always know where I am.

[MelanieGiles]

It is a well known fact that First Direct will not support customers with IVAs. I am suprised that your IP did not share this with you when he/she was first instructed.

[kallis3]

I hope you get a new account sorted out John - as the others have said, the Co-op come highly recommended!

[lukeofyorkshire]

Hi John sorry to hear about your issues with First Direct but as said before as they are part of HSBC they always do this.

As Kaza said we are the future cash surplus people and they are idiots to foget that. Then again they know we are wise to Financial Institutions now and will unlikely borrow miney. Therefore little money to be made from us.

People like us have long memories and I would urge you to remember this when your IVA is over and stay away from HSBS/First Direct.

I too also look forward to telling them in no uncertain terms to get stuffed as where were they when I needed them!

[johndoe]

Just a bit of an update. (And thanks to everyone for the advise)

I've been to the Co-Op Bank who have approved an account, the Cash Minder basic account. They have however not approved a basic savings account on the basis that I don't meet their criteria. The explanation was that as far as they are concerned while under an IVA one should be paying off your debt and not saving. I have tried to explain that it's not really saving, just budgeting because there are things I pay annually, like car tax and MOT, and there are some month a few quid left from the incidentals allowance, so it's nice to have those separate so you know what's going on, but they don't seem to get it.

Surprisingly they have allowed me to open a 2nd Cash Minder account instead. Seems a bit silly really but what can you do.

Anyway just waiting on the paperwork now and for the most part I am sorted.

Thanks again everyone.
Ian

[lukeofyorkshire]

A good update John.

As for the reasoning they give for not allowing Saving's Accounts that is stupid. Makes no sense whatsoever, seems in order to work in Banking at the higher Managerial Levels you only need the IQ of a turnip and zero common sense! Where do I apply???? [:D]