The bank I owed money to have transferred the debt to my new bank. Can they do this ?

[kaz evans]

i have opened a basic bank account with a different bank from the one i owed money from or so i thought the iva was approved this week and then i got a letter from the bank i owed money to and they have transferred the debt to my new bank can they do this

[Adam Davies]

Hi and welcome

Which banks are we talking about ?

Once IVA is agreed the creditor can't offset from one account to another to get the money back, only before the IVA is agreed can they do this

Regards

[Little miss trouble]

Not sure on this. Possibly maybe if they are linked. I'm sure the experts will advice, but they need to know which banks to help x

[kaz evans]

the banks were lloyds and tsb (i know) but i have always been reliably informed that these were 2 separate banks i checked and checked that my debt would remain with tsb and was always told yes when the iva was approved and all set up tsb moved the debt to lloyds

[Adam Davies]

Hi

If the debt is included in your IVA then the bank can't try to claw it back.
Speak to your Insolvency Practitioner


Regards

[kaz evans]

yes the debt was included in the iva and i will talk with my insolvency practitioner thankyou

[Little miss trouble]

Good luck, and get yr money back!! X

[UpToMyNeckInIt]

Hi Kaz,

as I am sure you are nowa aware, Lloyds/TSB are part of the same banking group, and so have exercised their right to 'set-off' the debt.

I find it staggering that your IVA company did not adivse you to open a bank account with a non-creditor AND non-linked bank to avoid just this sort of complication.

Hope you get the matter sorted out soon.

[kaz evans]

i asked this question at the start and to all intense and purposes was told they are separate banks been to the coop this morning to open a basic bank account so hopefully things will be okay