standing-order on my account referenced 'IVA'

[steve.j]

On the 16th July I entered into an IVA. Prior to its approval I changed bank accounts from Lloyds TSB (my biggest creditor) to First Direct (a non-creditor). I made my first IVA payment from my new account but then had a telephone call from First Direct saying that they had noticed a standing-order on my account referenced 'IVA'. They now say that they don't offer bank accounts to people in my situation and verbally gave me 30 days notice that they will be closing my account.
My first question is can they do this, as I haven't even been notified in writing, and secondly can you recommend any banks that will accept people with IVA's?

Thanks in advance for your help.

[Lisa2009]

I believe halifax and nat west do standard bank accounts for people in IVA. There are others too if you read some of the posts on this forum

[Skippy]

Sadly yes they can close your account providing they give you the notice specified in your terms and conditions.

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/

[lily]

HSBC and first direct have done this to quite a few people in IVA's.

You would be given an account with think-banking but there is a monthly charge.

Coop offer a cashminder account with a debit card, you could try any bank that is not a creditor. The abbey do a basic account also. It is so much more fruitful if you go into the branch in person.

Good luck

lily

[steve.j]

Thanks! The forum has been a great help in pointing me in the direction of suitable bank account options.
First Direct still haven't notified me in writing and this is stipulated in their T&C's. It's a shame because they seemed like a very user friendly bank especially after having previously banked with Lloyds TSB for over 20 years who did nothing to help with my pre-IVA situation.

[jasperyogi]

I know what you mean about lloyds, I had banked with them for 16yrs and they were the only creditor out of 11 that would not accept our DMP kept adding charges and interest and so had to enter an IVA and still they keep ringing, they must like my accent or something!

Why spend life worrying...when you can spend it smiling!!

[katy]

I had huge trouble with First Direct, even before they became one of my biggest creditors in my (now failed) IVA. I would get back onto them and point out their terms and conditions to them.

[ray_a]

Agree try CO Op Cash minder and also look at Cash Plus Mastercard so that you can have a credit card type of transaction

Just one question why was an IVA mentioned on the entry? I set my stabnding order to go to the firm and had no mention of an IVA!

Good Luck

Ray

[kpw]

Hi
I had no problem opening a basic bank a/c with HSBC when I was in my IVA. Now I have finished they have upgraded it to a normal current a/c with a meastro debit card with a £100 cheque guarantee.
Mind you I do not have any more debt and income regularly going in. So there is light at the end of the tunnel, even though at one time I couldn't see a way out of my debt situation.

[lily]

It is now HSBC and First direct policy not to accept people who are in IVA's. I would not bother trying to argue with them, you need an account and fast.

lily

[ray_a]

KPW

Interesting that you have reverted back to a normal bank account after finishing an IVA.

How long did it take you to get it as I am in the process of coming out of an IVA!

Thanks

Ray

[steve.j]

[quote]Originally posted by ray_a

Agree try CO Op Cash minder and also look at Cash Plus Mastercard so that you can have a credit card type of transaction

Just one question why was an IVA mentioned on the entry? I set my stabnding order to go to the firm and had no mention of an IVA!

Good Luck

Ray

I was stupid! I applied to First Direct for an account whilst my IVA application was in progress and in fact my IVA was approved on the same day that First Direct transferred my old Lloyds TSB account to the new one. As they had approved my account and their T&C's didn't prohibit IVA's I didn't think that there would be a problem so included 'IVA' in my standing order details for future reverence. I think I was also just so elated that my IVA had been approved and my finances were now going to be easy to manage that I was too liberal with my honesty...Lesson learnt!

[Skippy]

They would probably have closed the account eventually anyway - they check the insolvency register for people in IVAs!

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/

[katy]

You could try the Abbey, they accepted us when we entered into a IVA. They gave us a cheque book and a visa electron card with no overdraft facility. They also do a very basic bank account, i've found them to be very good but have sadly lost this account now i'm bankrupt.

[lily]

I was totally honest about the debts with coop and they were really nice to me.

lily