www.iva.co.uk

Hey guys can you work this out please? My IVA was approved 2 weeks ago. I have current account with the Co-op and have just applied for a basic savings account. The guy from co-op was really nice and went through the application but I was unscuccessful! Can't understand it, I already have an account with them and I haven't applied for credit! I am worried now in case they say I can't have a current account! Please advise!

I can never understand why anyone could be refused a savings account as no credit is involved??

you should be ok with your current account. I suppose the reasoning might be that if you are in an iva then it is unlikley that you will be able to save a lot and the cost to the Co-op of setting up the account is probably not re-couped if the account does have much deposited in it. Basically how banks work is that they lend a high proportion of the money people save to other people and through how it then works with the holding banks they can multiply this lending several times over and it is based on the assumption that there will only be a few that withdraw savings allowing more lending to take place. Thats why Northen Rock really declined fast when people were withdrawing savings so fast and hence that banks are unwilling to lend at the moment as people are not increasing thier savings or worse still the savings are reducing.

So where are you supposed to put the money you put by each month for, car tax, servicing, emergencies, under the mattress????

wantmylifeback wrote:

So where are you supposed to put the money you put by each month for, car tax, servicing, emergencies, under the mattress????

Mine goes in a tin can in the kitchen cupboard right at the back beside the cup a soups...................damn I have said too much!!![:0]

It remains a mystery to me! How can it be a risk to a bank giving someone a savings account - when you already have a current account with them! In fact it is beneficial for them!

do the post office do savings accounts?

Hi
Yes this is a real mystery, I think a similar thing happened to Skippy with her bank.
Would love to know the reasoning behind this decision
Regards

Skippy did have trouble with a savings account with the Co-op - I think she has managed to get one now though.

These banks must be daft! Why on earth turn someone down who wants a basic savings account? I will find out if Secure Trust do one, I am sure they would.

I'm pretty sure you can do an e-savings account with Nationwide.

I agree though Melanie - it's not as though you are asking for credit is it? It's your money!

Ask the co-op to appeal the decision. They did it for me and i've now got one.

Hi
That is interesting, I guess the computor said "no" until a real person looked at it.
Regards

Hi,I also was declined, I asked if they could appeal the decision (which they did) and I was accepted after about three weeks of waiting for a decision. I now have a second account with them and when I applied for this one it also had to be referred. it was worth doing though.

I would appeal but I am wary they might downgrade my current account which is a visa debit with a chequebook (no overdraft facility).