www.iva.co.uk

hi

Just a bit worried here looking through some of the questions folks are asking about bank accounts, anyway I have had my iva for nearly 2 1/2 years and its running smoothly but I have a visa/debit card and an overdraft of 500.00 am I allowed this?

Hi There,

You can have a debit card, but definitly not an overdraft facility. Do you use the overdraft?

hi

yes I do use it sometimes but its getting less and less. Please can I ask why I am allowed an overdraft on my account?

You're not allowed an overdraft, it's a big no no in an IVA as it is credit. You need to speak to your IP and inform them of this. You could be in breach of your IVA.

hi

I will do 1st thing Monday but it still doesnt answer the question why I am allowed an overdraft? Also I am now very careful with my money and I have learnt my lesson, im confused....

Why are you allowed an overdraft? Did you get it automatically with your bank account before your credit rating was shot? I was offered one when I changed banks because I did it before it all went downhill. I didn't take it. Don't panic, pay it off as quick as you can, cancel the facility and let your IP know.

I was given an automatic £500 overdraft with my smile bank account, I mailed them through their secure service, got this removed and when I received the confirmation secure message it had been removed, I sent a copy of this to my IP to confirm I had no o/d.

Did you open a new bank account when you did your IVA? If so, they may just have given you one anyway because they woudn't have known. If it was an old bank account then it was probably already there.

You do need to get rid of it though as soon as possible.

The overdraft is a form of borrowing which isnt allowed during the iva. I would contact your bank to try and remove it from your account,although given the tiome your IVA has been going if your IP hasnt bothered about it by now they probably dont care(surely it shows on bank statements during reviews!!)

The having of an overdraft facility is not necessarily a problem with an IVA - but using the facility can be. I do not really feel that occasional use of a £500 facility is much to get excited about, but obviously it is better to try and not rely on that.

Melanie

I am really worried about this now, the comments made on here are scaring me....I have contacted my bank this morning and reduced it to £300.00, I will continue to reduce it each month, but I honestly did not know I was not allowed an overdraft!! also my ip does not ask me for bank statements just wage slips... my iva wont fail because of this will it as im nearly 1/2 way through it.... please advise thanks

Don't be scared Phil. The forum is here for discussion and not definitive advice. Please read my post above, where I have stated that you have a minor issue, and if you are going to gradually reduce the overdraft then this is sensible. At the end of the day if you are maintaining your payments into the IVA, your Supervisor is not going to fail it for a very minor default - especially if they did not make it clear to you that you were not allowed this facility.

ok Melanie thanks for that advice, I do pay slightly more into my iva each month think I will pay what I'm supposed to that way the overdraft will reduce quicker.I must admit my origional ip company were not very good but it was passed to another ip company who are much better.Do i need to contact my ip over this matter or can I just carry on and reduce the overdraft each month?

Hi
No need to contac your IP,just reduce the overdraft down,although as Melanie has stated it is no great problem
Regards

Thank you

I can relax a bit more now, I didnt sleep well last night worrying about this but feeling better now thanks to Melania, she has put my mind at ease.

what a great site keep up the good work.

once again Thanks