Links between banks

[lucy.f]

Hi All

Pleased to say things are moving on now and my wonderful IP (Melanie) is sorting us out.

We changed accounts after stopping our payments to creditors but now find out our new bank is financially linked to the same group, HBOS as one of our creditors! Default notices now arriving, although general blurb, says they have the right to remove funds from accounts held with them.

Is this say just Natwest taking money from Natwest account to repay Natwest debt. Or could they take money from other linked bank accounts?

Has anyone any experience of taking money in this way and if so, what is legal process and will I find out before money suddenly disappears?

I do have lots of creditors [:I] so near on impossible to open an account not financially linked to at least one of them. Who are Think Banking btw and who owns them?

Melanie, have e-mailed your office directly but thought that other posters may benefit from yours and other experts opinions as this didn't even occur to me until I read about it today. Hope you don't mind! Really don't want to change accounts again unless 100% absolutely necessary.

Any guidance appreciated.

[MelanieGiles]

Proposals are in the post tonight!

Banks generally have an automatic right of set-off if you have debts with them and also you hold current accounts. This does not necessarily extend to other part of the bank's group - but you do need to check the small print. To err on the safe side, do try and pick a bank who you don't owe any money to, or check with your own bank as to whether they will allow you to retain current account facilities with them.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[aguise]

Hi Lucy Thinkbanking are part of Ropyal Bank of Scotland but it doesnt matter if they are a creditor the ac is designed for those with money problems and they accept all. I have found it invaluable and a real support, you can look them up on www.thinkbanking.co.uk and look at the managed ac or phone them and they will explain all over the phone.

Ang

[lucy.f]

Thanks for both replies.

So Think Banking will not worry about me having debt to other banks within their group? If so, how long did it take to set up?

Melanie, have you heard of this happening with any of your other clients? We will change our bank accounts but just concerned that as we're being paid next week, won't have time to set up new account and get payroll depts. for both of us changed by then. How long does it take before they start taking money and will they tell us or just do it??

Any guidance from anyone (especially if this has happened to you) really appreciated.

[aguise]

Hi again Lucy
The ac can be opened over the phone. I had AA financial services which is part of rbos and does not matter.They accept regardless of creditors. I had an ac no within ten minutes and was able to change payroll the next day. Depends on your work though. I think you can still ring them now even. If you check the website it telld s you open to all no credit checks it is the nature of the account, has a maestro card but will only let you have what is in the ac seperates bill money from what you have so you cant overspend . Thjere is a 12.50 monthly charge but add on the cost of a prepaid card and works out the same .

Ang

[Adam Davies]

Lucy
Go for Think Banking,I bank with them and they will accept you.They charge £12.50 a month and you get a Maestro debit card.There is a £25 set up fee but there is no danger of any other fees.
It really is superb
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

[lucy.f]

Just another thought. The bank account is joint but creditor related remotely to bank is only a creditor of mine. If they took money from joint funds, how would they know how much of it was mine (if any?) Surely they can't take money not knowing whose it is??!!

[MelanieGiles]

No they can't - but if they do in error you will be left without funding until the matter gets sorted out. I am not a fan of Think banking, in view of the costs involved, but other forum members recommend them all the time and they are designed for people in IVA's.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[Adrian Ratcliffe]

Hi Lucy,
I had this after everything started going wrong I was advised to get a simple account at Natwest with a solo card.
After my IVA had been sorted out I noticed Natwest was on the list of creditors, even though I had never been a customer.
Turns out that I had a credit card with another company that Natwest had aquired and didn't change the company name.
So you think you may know your creditors, but do you.
I would like to know who actually owns who, as I think eventually if you open an account every credit lender and agency will automatically know.
Hence the computer will actually say no in most cases.
Regards
Adrian

[Skippy]

I'm with Melanie on this one - I had an account with Think Banking and I really begrudged the £12.50 as I didn't feel I was getting a great deal for it, so much so that I closed it after one month! Have you tried an account with the Co-op? The do a basic Cashminder account and they give you an Electron card with it. I do think that £150 per year (or £175 in the first year)is a lot of money, and I can't help feeling that they are taking advantage of people who are desperate. I know I'm in a minority on this one!

On the subject of pre-paid cards the cost depends on how often you use them. Mine comes with two options - either a flat fee of £5.95 per month, or you can change it so that you pay £1 per transaction. I only use it occasionally, so £1 per time suits me.

Yesterday is history, tomorrow is a mystery, today is the present - a gift to make the most of.

View my blog at http://skippy13.blogs.iva.co.uk/

[ray_a]

Sorry Andy I have to agree with Melanie and Skippy!

Better to look at the Co Op cash minder account and also go for cash plus mastercard although they charge an initial fee and a monthly charge of £4.95 but I find it helpful!

The cash plus web site is :- www.mycashplus.co.uk

Regards

Ray

[Adam Davies]

Hi
I agree that a bank that charges zero is better but the point that you are all missing is that Think banking do not charge for bounced direct debits,standing orders and probably the most important thing is that it stops you from spending money that is for bills etc as you cannot access this.
I doubt if free banking will be around for too much longer anyway
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

[ray_a]

Hi Andy

I must admit I was wondering about our bank accounts if the banks start charging which looks likely to happen within a foreseeable period.

I also take the point that Cirrus is a stronger card to use than VISA Electron.

What do you do for business bank accounts ? As I believe you run a business?

[Skippy]

I presume that you can claim the £12.50 for Think Banking as expenditure in an IVA? I'm wondering as if the banks all start charging then surely no-one in an IVA will be able to afford a bank account as you're not supposed to have any spare money.

Yesterday is history, tomorrow is a mystery, today is the present - a gift to make the most of.

View my blog at http://skippy13.blogs.iva.co.uk/

[aguise]

Hi Skippy and all.
I asked about claiming it on expenditure and they said no. I think you have to look at how you use your account.I wanted a debit card, I was going to get a pre paid and when I weighed up the cost of going to load it and the charges I dont think there was much in it, the only quick easy way was thinkbanking I have about 12 direct debits, they keep this from me, dont have to keep checking if there is enough for stuff to go out, Also when starting the iva I needed to get an account quickly, to save my wages going on bills, and could not go round the high streets due to working and also feeling really low at the time, and the account was set straight up over the phone. This account does what I need and previously I used secure homes for a lot of the bills , and they charge also , so for me it feels right and I am happy, but for some but as you say a basic account with no charges may be better, but I agree also with Andy, that I dont think it will be long before the banks all start charging, maybe to get back all the charges people are claiming back.
As with anything what is good for one may not be for another, you need to look at what you need from an account as to whether the charges are worth it.

Ang