| Author |
 Topic  |
|
kalf
IVA Novice
United Kingdom
32 Posts |
 Posted - 06 March 2010 : 11:26:57
|
Hi,
I have a Co-op Cashminder Account, which is great. But I am self-employed and wanted to put my tax & NICS contributions into a savings account, separate to the cashminder account. I telephoned the Co-op and strangely the savings account they gave me was an ISA. This was completely inappropriate, firstly because any savings in an ISA should by rights go into the IVA, but all I wanted was a savings account with instant access. Being self-employed my tax & NICS get paid once a year, so thought it would be better to put this money elsewhere. Anyway I telephoned the Co-op, explained that they had given me the wrong account, that I did not want an ISA, just a simple savings account. I went through the application and was refused. How hard is it to simply put your money into a bank!!! I asked why I was refused, as I had been completely up front about the IVA. She said on that particular account they do a credit check, whereas on the ISA they don't. But I pointed out that I already have a cashminder account with them, and surely they did a credit check then too. Anyway I wanted to know what I can do about it. I read recently that they are bound by rules, and feel they are being discriminatory to those in IVAs. Incidently since then I have tried a few different banks (those recommended on here) and they too have refused me. All I want to do is place money with them and have instant access when needed. Any help would be appreciated.
Many thanks. |
|
|
PoorbutHappy
IVA Junior
United Kingdom
83 Posts |
Posted - 06 March 2010 : 11:40:29
|
I use Nationwide as my main account and I have opened multiple savings accounts there (online) with no issues (mainly to seperate out my fuel and car maintenance funds).
The only problem I have had with them was when you first start a savings acount, you put some money into it. This money comes out of your account, but it days a few days for the savings account to appear, so for a while you have no access to those funds. SO I only open them with £10 initially till they up and running.
When I first started my IVA I opened a new HSBC account. Having heard about their IVA policy, I tried Co-op. Having had not much response from them, I went to nationwide (over the phone). Eventually I ended up with both Co-op and natiowide, as the coop where just a bit slow on working out who I was.
I found the nationwide much more useful online so stuck with them, and use the co-op for hobbies and stuff now. (part of my misc budget)
My initial approach to Natiowide, at the start of my IVA, failed, mainly because the local branch was trying to open me a normal current account rather than a basic one. My second attempt was about a year later. Probably helped that our move just before the IVA was showing up on all our records
PBH
PS Just checked my HSBC account. Stillup and running despite no use for 3 years hehe |
Edited by - PoorbutHappy on 06 March 2010 11:44:41 |
 |
|
|
Andy Davie
Administrator
IVA completed.
10766 Posts |
Posted - 06 March 2010 : 11:55:45
|
Hi
Isn't it crazy ? Credit checks to open a savings account, when you already have a current account with them.
Why would a poor credit record/IVA affect a savings account ?
By the way anything that you save in an IVA from your expenditure allowance or from overtime/commission is yours to do as you wish, you could open an ISA if you wanted to
Regards |
Andy Davie, IVA.co.uk spokesperson and a Debt Advisor
If you need any help or advice about the various debt solutions available please contact me via my website at www.andydavie.com
Author of "Real life IVA stories" and Debt Counsellor of the year finalist 2010 |
|
|
|
confuzzled
IVA Novice
43 Posts |
Posted - 06 March 2010 : 12:23:51
|
It does seem ridiculous.
Surely people shouldn't be forced into resorting to 'under the mattress / in the tea caddy' etc?
Just don't do what my Gran did and 'keep it safe' in a cornflakes packet... only to forget and throw the packet out!!!  |
|
|
|
jen245
New Member
United Kingdom
17 Posts |
Posted - 06 March 2010 : 13:57:40
|
| Have you thought about opening a Natwest First Reserve Savings account? Both me and my hubby have one of these (applied for during the IVA) and had no problem with credit checks, and you also get a Solo debit card which comes in very handy, plus on-line banking |
|
|
|
johnB
IVA Junior
IVA completed.
United Kingdom
130 Posts |
Posted - 06 March 2010 : 14:06:26
|
I had a similar problem to this. I was declined a savings account with Sainsburys, as they said I was bankrupt??
I have savings accounts with my local building society and with NS&I (savings book account) and had no problems opening it. |
|
|
|
struggling63
IVA Junior
69 Posts |
Posted - 06 March 2010 : 14:30:04
|
Funnily enough, I had no problems with Sainsbury's after being turned down by the Co-Op who I have my Cashminder account with!
It had a decent interest rate to begin with, but alas no more, although to be honest I only use it to put £20 or so in, just to make sure I've got money left for the tail end of the month! |
|
|
|
plasticdaft
Forum Expert
United Kingdom
4145 Posts |
Posted - 06 March 2010 : 16:55:21
|
Funny how some people in the same boat can get differing results from the banks and building societies?!? How crazy is that,surely one set of rules/guidelines?
I know what we can save is ours to keep but wouldnt want to show my IP an ISA if I had one. I will have one,one day,in the future when I dont have any debts(except the mortgage).
Paul,(skint but getting there!!!) |
24 payments down in our protected trust deed. With 18 to go we are on the downhill stretch!! |
|
|
|
kallis3
Moderator
27 month\s down 33 month\s to go.
United Kingdom
35545 Posts |
Posted - 06 March 2010 : 18:49:30
|
The Co-op are funny about savings accounts for some reason. It is stupid when it is your money and you can't go overdrawn at all!
I think you are allowed to put your savings anywhere you want! |
Buckle your seat belt Dorothy, 'cos Kansas is going bye bye.
27 down, 33 to go.
Jan
xx
|
|
|
|
Helen
Forum Expert
IVA completed.
United Kingdom
6018 Posts |
|
|
kallis3
Moderator
27 month\s down 33 month\s to go.
United Kingdom
35545 Posts |
Posted - 06 March 2010 : 18:54:29
|
| Good idea H! |
Buckle your seat belt Dorothy, 'cos Kansas is going bye bye.
27 down, 33 to go.
Jan
xx
|
|
|
|
kalf
IVA Novice
United Kingdom
32 Posts |
Posted - 07 March 2010 : 10:57:54
|
thanks for all your help. Will try NatWest I think, but a bit concerned that I am being turned down and they won't give a reason why, especially in light of the fact I tell them I am in an IVA.
Only started this IVA in October, and to be frank I had no idea the effect being in an IVA does to you. My husband and I feel like lepers!!
For instance being self-employed I pay my taxes through self-assessment, (the same as my two daughters do, we are all in the same line of work. My accountant has recommended that we put everything through our limited company (which we have yet to start trading, been on the shelf over a year). So my daughter (partner & Director) applied to open a business account for the limited company. On Companies House I am listed as a partner but not a director. The Alliance & Leicester sent a letter wanting my details because they want to run a credit check on me. Surely they have already done this if they are asking. The shares within the company are split between myself and two daughters. We have requested that the only signatories on the account are my two daughters. Because of me being in an IVA we thought it would be better to have daughters as Directors and the only signatories on the account. I am simply a shareholder, but they must have looked up my name, otherwise why ask my permission to run a credit check on me. Again, feel like I am being discriminated against. So basically without a business account, we will have to continue to do self-assessment. Not a huge problem, we can continue to do self-assessment, but we would have saved more money by paying corporation tax rather than self assessment tax & NICS. I just feel very angry that banks are doing this to me. I responsibly enter an IVA in order to sort out our finances and now feel we may as well have gone bankrupt, because we are seen by banks as exactly the same. Does anyone else agree with me? |
|
|
|
kallis3
Moderator
27 month\s down 33 month\s to go.
United Kingdom
35545 Posts |
Posted - 07 March 2010 : 11:15:36
|
I totally agree.
We have taken the responsible step of realising we have too much debt and are doing something about it. We should not be discriminated against. |
Buckle your seat belt Dorothy, 'cos Kansas is going bye bye.
27 down, 33 to go.
Jan
xx
|
|
|
|
back on track
IVA Junior
20 month\s down 40 month\s to go.
United Kingdom
198 Posts |
Posted - 07 March 2010 : 19:05:47
|
and heres me thinking i was bad for getting into debt and not knowing how to handle money.
when all along the banks are acting like this.
they are bonkers all right
makes me wonder now how this country gets by at all with the looneys at the banks working in such a mis-managed way |
|
|
|
johnB
IVA Junior
IVA completed.
United Kingdom
130 Posts |
Posted - 08 March 2010 : 01:12:17
|
I totally agree also.
So banks seem to hate people in IVAs (I tried recently to swap from Co-op to Barclays) and got turned down for their basic account. I tried to open a savings account with Sainsburys and got turned down!!
I like you only wanted to save a little for a rainy day having tried to do the right thing, but it was a hard journey. You will make it, and you will find places which will take your cash. Try your local building society (where abouts in the UK are you?).
Mine didn't even ask about IVAs or bankruptcy. Also have a savings account with NS&I and they seem fine.
Good luck |
|
|
|
kallis3
Moderator
27 month\s down 33 month\s to go.
United Kingdom
35545 Posts |
Posted - 08 March 2010 : 09:09:56
|
Surprised at Barclays as they are usually ok as far as the basic account goes.
HSBC and First Direct are well known for closing down accounts for people in IVA/BR, others just don't want to know.
Annoying isn't it? |
Buckle your seat belt Dorothy, 'cos Kansas is going bye bye.
27 down, 33 to go.
Jan
xx
|
|
|
|
johnB
IVA Junior
IVA completed.
United Kingdom
130 Posts |
Posted - 08 March 2010 : 22:34:28
|
It is annoying.
I wasn't asking for an overdraft, cheque book or a credit card. But still made to feel like a criminal.
Now so many people are in an IVA perhaps some of the banks may change their approach to people who have had credit problems. |
|
|
|
kallis3
Moderator
27 month\s down 33 month\s to go.
United Kingdom
35545 Posts |
Posted - 08 March 2010 : 23:05:38
|
| Unless Natwest are one of your creditors, then you could try their basic account. |
Buckle your seat belt Dorothy, 'cos Kansas is going bye bye.
27 down, 33 to go.
Jan
xx
|
|
|
|
lesley_
Forum Expert
30 month\s down 30 month\s to go.
United Kingdom
8889 Posts |
Posted - 09 March 2010 : 07:51:35
|
| I have the Step Account and savings account with Natwest didn't have any problem opening either. |
http://thereisanend.blogs.iva.co.uk/
Downhill now 31/60.... |
|
|
|
kalf
IVA Novice
United Kingdom
32 Posts |
Posted - 10 March 2010 : 11:04:20
|
| I live in the West Midlands. Thanks for your advice. I think the best approach is to go to the bank themselves, explain my situation, and hope this will go some way to allowing me to put my bl**dy money in their banks. Unbelievable isn't it, that it is so difficult putting your own money into their grubby little coffers. It's nice to know I am not the only one who feels like this. |
|
|
|
johnpotter
New Member
7 Posts |
Posted - 10 March 2010 : 12:56:26
|
| Simple: Buy Premium Bonds every month. Never know you may win and pay your IVA off early!!! Interest from the Bank is no worth saving. |
|
|
|
Topic |
|
Can't open a Savings Account
