www.iva.co.uk

I am in the process of setting up an IVA. As directed I have sent each of my creditors an explanatory letter and a small "token" payment via postal orders. However, i am unable to do this with my cooperative bank loan. The problem is, even though I have opened a new bank account it is too late to stop my wages going into my old cooperative bank account at the end of the month. The loan payment is taken by them automatically the next day. Can you think of any way I can stop this from happening??? (I am only able to take a max of £250 cash out of the bank in one day)

Hi Mel and welcome.

Unfortunately you probably won't be able to stop the bank doing this. HSBC did this to me all the time.

Can you go into the branch on payday and withdraw it all rather than use the cash machine?

I Guess the loan payment is taken by direct debit. I suggest you cancel the direct debit immediately. If your unable to do that, perhaps you could go into a coop branch and withdraw all the money from your account on payday. Your DD would then bounce, but the charges etc could then be part of your IVA Proposals best of luck Rich

It probably won't make any difference Rich. We tried that with HSBC. I even transferred across the DD to Barclays which was our new account at the time and cancelled it.

HSBC continued to take out the loan money, put it back because there was nothing there and charge me for the privilege.

Co Op has excellent online facilities, why not go online and transfer it over to the new account? That should work. If they take it anyway then the effect will be negligible as it is not your money that they are paying it with, you will owe less on the loan and more on any overdraft so it is as broad as it is long and though that may result in more charges intially then that is surely better than having less money to live on.

Regards.

Natwest continued taking repayments for their loan from my Natwest account even after I took all the money out. They just kept increasing the overdraft to accommodate so were setting off their own debt and all balanced out for the iva...as the loan went down the OD went up.

HSBC refused to put the overdraft up which was why they took it out every month, then when it went over limit they put it back in but added the charges!

my hubby had this with a loan,it kept bumping up interest charges which made us panic. in the end it made no difference to our IVA being accepted.

HSBC - they are cards aren't they!! I had a small forest arrive in the last couple of weeks where they were taking money out, putting it in and charging me. Do I care? - nah!!!

me too just take the money out at the counter and dont worry about charges and interest cuz they will all be added to IVA gotta love HSBC they sent me a small rain forest in letters too lol xx