My bank account was with Lloyds who were one of my creditors as I had a small unsecured loan with them.
My IVA supervisor requested I close any account with access to a debit card and overdraft - fair enough!
I have already opened a Halifax EasyCash account and moved direct debits etc over.
I have written to and rung Lloyds explaining that I am now in an IVA (gave them all the details) and explained that the terms of my IVA requested the account be closed...but I checked online today (I asked them to write to confirm account closure so I could forward letter to the supervissor) and it is still open - argh!
I am a bit concerned as there is one paragraph in the agreement which says that having access to an account with overdraft and debit card could lead to the IVA failing. I assume even if I don't use it!
Could any of the experts give me some reassurance that still having this account open while I try again to get it closed won't go against me?
I could send copies of letters to them and my cheque book and debit card, do you think this would help and 'show willing'
I know it sounds like a silly thing but I don't want any screw ups!
If you have requested the account to be closed but they havnt done then you cant be in the wrong. Its not like your running up more debt with them and if you cend them your debit card and cheque book then you have done everything you can and that cant be held against you surley.
Im sure one of the experts will be along to better advise soon
You can still have a debit card in an IVA, but not an overdraft.
My original bank account was with Barclays, who were one of my creditors. I still have that account open (don't use it at the moment though), it has no overdraft facility. I still have the cheque book and debit card though, and will retain these until my IVA is finished.
As long as you don't use it, I can't see a problem.
A few people on here have accounts with debit cards.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
I have a debit card on my account and had this included as part of my IVA agreement. It does seem to vary from IVA to IVA, so not sure whether there are any rules around it. Definately no overdraft though, despite Barclays repeatedly offering me one, but they have now got the message.
It clearly states "no access to an overdraft" so having the account open still naturally gives me access to an overdraft - hence me being so keen to close the bloomin thing!
I have contacted them again and they are sending me a closure pack out, so hopefully I will get this soon and it will all be done and dusted!
Our Lloydstsb account is still open(one of our big creditors),and all DD's switched to our co op account but as the tsb account is a select account they keep taking £7 a month out as an account fee. The select account gives aa cover to the wife and I and mobile phone insurance so we just keep depositing enough to pay for the account fee,much cheaper than getting new aa or rac cover and phone insurance!!!
Discharged today the 8th feb 2012. View is much brighter now.
Continuing to rebuild our credit worthiness.
I was/am with the LTSB before my IVA was agreed, just a current account with overdraft/debit card/loan agreement etc
Once my IVA was agreed I switched over to my co-op account and to be honest, I don't know whether my LTSB account is still open.
I presumed that when my IVA was in place that they would close it automatically as they were my main creditor.
I have not had any statements or letters to date saying either way and I have not logged in online since, can't remember my passwords etc anyway
Anyway, my I.P. knows about the LTSB account as obviously it was included in my IVA so thats the end of that account in my mind open or closed
Gonna be interesting once my IVA is completed to see what accounts are still open.[?]
Hi Angel
Long time no speak [:)]. Re your bank account problem. If you can still log into your account, set the OD limit to Zero. that way you won't accidentally go overdrawn. As has been said by others in this thread there is no reason why you can't have a debit card; its just a more convenient way to carry cash.
Ray
When I was young I was called a rugged individualist
When I was in my fifties I was considered eccentric
Here I am doing and saying the same things I did back then and now I'm labelled senile
