Just found out HSBC bank has frozen our accounts. Never told by PayPlan. What do we do ?

[redbeetle13]

just found out that HSBc bank has frozen our account, we have been given no notice, never been told by payplan who have sorted our IVA to get a new account. what do we do?

[Kelly O]

I am sorry that HSBC have frozen your accounts, i am surprised that Payplan didn't warn you that HSBC do not like IVAs and when they find out you are in one will close the account.

Try and open another account asap with Co op or Barclays cash account if you do not owe them any money?

Have you spoken to HSBC? were they a creditor in your IVA?

[redbeetle13]

hi, we have spoken to HSBC and my husband has sent them a letter from Payplan so they can review our case, as no they are not one of our creditors but we are not holding out much hope after reading about their reputation on your site. we are going to go Barclay's in the morning to hopefully see about a new account but feel so upset about the way that HSBC have treated us.

[Kelly O]

I do hope you get something sorted out, the inconvenience this causes people is a nightmare!

The Barclays account is a good account so fingers crossed they can help you tomorrow, they might transfer your direct debits over from HSBC if you ask

[redbeetle13]

thank you, will let you know how we get on. Just when we thought we had got things sorted, we have been hit with this.

[LeFran]

If you have debts with HSBC and any associated company then they will do but looking at your posts you don't. Again and referring to my previous posts, this is disgusting, especially with a bank you owe nothing too. For example you may have requirements to access that account, emergencies, requirements of medication that needs paying, basic living requirements or a child who has special needs that you require funds to address. I thought banks should give you notice before closure? I noticed there were previous posts where the IVA experts have raised this issue, but what are the conclusions? We are seeing this issue time and time again and from what I can see, there needs some regulation or correct information regarding bank accounts from an official source. This is causing no end of grief and in this day and age, dangerous and upsetting for people and not in line with human rights. Again, who can we write too, Bank of England, Ombudsman, MP, any ideas?

[Sally1966]

I'm with first direct and I changed my account to somewhere else because I was worried they would close my account . I've been in my IVA since June and its still active

[back on track]

I was told that's the first thing to do is change bank accounts and that my proposal would not be submitted until that was in place.im with payplan.thought that was common knowledge that you must do this first.

[Michael Peoples]

It is well known about HSBC's attitude to IVAs and if you were not warned that was pretty slack of your dvisor.

[Radish]

I owe the biggest chunk of my debt to the Halifax. I opened a new account with Yorkshire Bank when starting my IVA in 2008 (YB have been brilliant). I did however, keep my old current account with Halifax open. I put money in there every month for budgeting reasons, and have not had a single problem with them either. Dont know if that is any help but wanted to share my experience.

[Kelly O]

Hi Sally1966,

I hope you managed to open a new account?

Pop back and let us know how you got on

[Sally1966]

Yes Kelly I opened one before my IVA was approved because people had said on here that first direct would close my account . I've had some run ins with not very nice people at first direct , my account was still open so I closed it myself yesterday I'm with Barclays now and they have been fine

[Adam Davies]

Hi

Did they give any notice before freezing your account Redbeetle13 ?

Regards

[Tina Shortland]

Glad to read you got an account sorted Sally 1966 - hope the same goes for you Redbeetle13.

[MelanieGiles]

A warning to all persons reading the forum and thinking about entering an IVA with their creditors.

Do not open an account with either HSBC nor First Direct - as they have a rather odd internal policy not to support customers who have suffered from financial difficulties, but are doing their best to address them.