First Direct closing my account

[Vesta]

Hello I have thankfully just discovered your site ...I am feeling despair... can you help me?
I have recently entered into an IVA and prior to the IVA, and in readiness for the IVA, I opened a new bank account (with First Direct online banking). The account has been running well for almost 6 months; and I intended to keep managing it well; and it is and has always been in credit; and I have a good secure job. It is not part of my IVA and I do not have any connections with First Direct's partner banks.
However on 27th Dec!! I received a call from First Direct saying that they had found out that I have an IVA! and they are closing my account (I was given 1 months notice). They say it is their policy not to have customers with an IVA!
I have begged them to keep me (and then I begged them to give me a little more time to find a new bank and to change all my DD's and have my wages re routed, etc) but they cruelly remain firm and say I will be closed down on the date given!
I have been spoken to as though I am a criminal and all the despair I had prior to entering into my IVA has returned.
This IVA gave me hope after years of struggling and I was just beginning to smile again .... till the call on 27th shattered all that!
I am trying to claw my way out of this 'slimy muddy pit' that I slid into after misfortune took its toll and this IVA seemed the life line I needed ... but now I am without a bank.
(I am so terrified too that my employers will find out about my IVA and now I have no bank to pay my wage into they might!)
Could you advise me please ....will I be accepted by a new bank now that I have an IVA in place?
Could you advise me on which banks or Building Societies to approach ..... (LLoyds TSB, are not an option for me as they are in my IVA)?
How do I approach applying to a new bank .... do I tell them up front that I have an IVA? (I suppose I should given what has happened with First Direct.)
What will I do if I cannot get a new bank account?
I need an account ASAP too as my employer will need time to re route my pay.
This is a nightmare (again)!
Many Many thanks for your site it has helped me tonight to read that I am not alone in this IVA world and it has given me hope!

[Beechy]

Co-op, Allience and Liecester could be a good place to start

Dave Beech

[Lisa2009]

Theres also halifax easy cash, they give you online banking and a visa electron debit card. Thats who my hubby set his account with and they were ok about the IVA

[Vesta]

Thankyou for your suggestions, I am trying Co-op over phone and so far so good. Apparently I might be able to have a Cashminder account. Fingers crossed! They are sending papers out to me.
Thank God for angels!

[ray_a]

Fingers crossed for you!!!!

Also have a look at the cash plus Mastercard as it will also help with credit card transactions which you use to have and still need. Don't worry it is a credit card which is front loaded!

[debbiw]

I have an account with natwest which is their step account. It is fantastic, and I've had no problems with it

[wen]

Vesta, do not panic or worry. Not wanting to take away from the stress of the phonecall from First Direct, but unfortunately you are part of the one banking group (HSBC) that do have a policy on no IVA accounts.

I have a co-op cashminder, which you can apply for over the phone (not sure why they're sending you papers, but feel free to call up straight away and apply over the phone.) You can pay cheques and cash in, in the post office, and their 24/7 UK call centres are excellent. You get internet banking and visa electron card too.

Good alternatives for IVA are Natwest and Halifax/BOS, though make sure you don't have any past debts with them.

Please don't worry though, I was with HSBC for nearly 15 years and had to walk away from them due to my impending bankruptcy, and i've got nothing but praise for the co-op, so change can be good!!

There shouldn't be any reason why you'd be turned down for one, although they may refer you to their credit department for a couple of days, but again don't panic, it happened to me and all was ok.

I also agree with Ray, that the Cashplus card www.cashplus.co.uk is an excellent card to loan money on and use in places where a visa electron may not be accepted, or if you get the urge to flash a mastercard around - yet you're not racking up more credit!! [:D]

[luluj]

We faced the same, although ours was a letter on xmas eve giving us till the 14th January to clear off! We have basic accounts with Co-Op Smile and Halifax EasyCash. The Smile account gives you a visa debit and cheque book, the Halifax just a Visa Electron.

What annoyed me most was the fact that no where in First Direct's regulations does it say that IVA / bankrupts cannot have accounts with them. I asked them to send me their documentation that states this and they could not - simply told me that it was company policy!

There loss I say, because when i am out of my IVA and looking to step back on the housing market - I know which bank I won't go to for a mortgage or any other financial advise.

Keep smiling - it does get better. Just paid my fourth payment to my IP and had a debt free xmas.



Lulu

[louisa.s]

I will back what everyone else has been saying. Halifax easycash and Co-op accounts are great. We are now 20 months in and although have a current account with TSB applied successfully for both accounts. Although i've still got to ring up Co-op to set up my internet banking it all works a dream and very easy to do.

Good luck!

[Vesta]

Thankyou sooo Much everyone! ....... I wish I had known about this site months ago. Never mind ..... I know now and it is the best support for my IVA journey and just what I need just in time!!
BTW - [:I]I am spiritual minded and believe in a Universal Source and in ever helpful angels!
I hope angels will help all of you to travel this IVA path to freedom and joy .... you just have to ask them! (and yes I have to work on remembering TOO to ask angels for guidance and support because I have in the past clearly all too often forgotten this and gone it 'alone'!!... doh!)
And if 'angels' are difficult to accept maybe 'Cosmic Ordering' could be of interest (tis same thing really[:)]).
Love and Light.
[8)]

[nekhen]

well,well,well.... First Direct acting in an arbitrary way again. Them closing my account has also taken place and yes they were rude,obnoxious, squirming little *****!! However,not being one to lie down I have taken the fight up with them. As many of you have said they have a 'policy' as was also mentioned to me by Tony Preece at First Direct on Saturday 01/03/08. Asking to see it he refused. Well, if it existslets see it them. No. It is not in the public domain. Funny that. It is no where in their literature or tems and conditions. Basically it is a have. I have managed to get at least a dozen different excuses as to why I cant have a bank account with an IVA, uncconected to any debt and in credit, none of which ARE in any writing anywhere. Just a voice on the phone. Also their letters are insinuations bordering on false claims of dishonesty on the IVA bearer.
Give me your horror stories. The more amo i have the better.

Thankyou sooo Much everyone! ....... I wish I had known about this site months ago. Never mind ..... I know now and it is the best support for my IVA journey and just what I need just in time!!
BTW - [:I]I am spiritual minded and believe in a Universal Source and in ever helpful angels!
I hope angels will help all of you to travel this IVA path to freedom and joy .... you just have to ask them! (and yes I have to work on remembering TOO to ask angels for guidance and support because I have in the past clearly all too often forgotten this and gone it 'alone'!!... doh!)
And if 'angels' are difficult to accept maybe 'Cosmic Ordering' could be of interest (tis same thing really[:)]).
Love and Light.
[8)]

[Vesta]

Yes FIRST DIRECT are obnoxious! I was kicked out just as First Direct threatened ..... but thanks to all the lovely advise given to me via this site I successfully opened a Co-op account! Good old Co-op eh!!
I never did see First Directs supposed Terms and Conditions on IVA's either and I told them that too ...... but they don't listen to us IVA's folks ... I think they feel we are beneath them! Those people on the phones and those people in charge of replying to letters .... same attitude ..... same smugness!!
Good Luck,
Vesta

[wen]

Perhaps put a written complaint to First Direct demanding to see the T&C. If they say you can't see them, then escalate it further to the Financial Ombudsman.

Having said that, nekhen, do you really want to stay with a bank that has such a low opinion of customers in IVAs?