Basic or Current Account?

[lonely]

Hi all

I need to apply for a new bank account but I have read conflicting advice. Some people have said that you can hold a current account with an IVA, as long as it doesn't have an overdraft, whereas others are saying it must be a basic account.

Does anyone know which is true?

Thanks.

[Oliver]

You are allowed to have a current account whilst in an IVA. What you must not have are any credit products without the express permission of your IP.



Best Regards
Oliver

Thomas Charles and Co Ltd.
Experts in personal debt solutions.
Read customer feedback at: www.thomascharles.com/about_us.asp

[lonely]

Can anyone tell me why you are advised to open a new "basic" account then? Is it because if you open a new current account, you run the risk of them closing it down once the find out about your IVA or DMP?

[MelanieGiles]

Just because a basic account is what is says - an account with no credit facilities, but with a cheque and debit card facility.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[lonely]

The problem is I would like a new current account so I can have a debit card and use my card at shops or anywhere else - not keen on carrying wads of cash around with me. But I won't be applying for an overdraft or any other credit products, so I hope I can get one. I have already been turned down for a Nationwide flex account for being overcommited - I'm thinking of appealing. Also thinking of trying Abbey or Natwest, as none of these are linked to my debt. Any thoughts?

[fionaj]

I have a Natwest Step Account. I find it perfectly good. With it you get a Solo card - which these days I find the majority of shops will accept. There are places that do not accept it, but to be honest they are few and far between, and it is not a major problem. Also the online facilities are good, you can make online payments, and it is easy to track payments and keep up to date with things. Give it a try!

[MelanieGiles]

Natwest are a very good bank. Give them a try.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[iva experts]

Hi lonely,

If you have no luck with Abbey or Natwest, you might want to also try the Barclays Cash Card Account. I know you mentioned that you didn't want to carry a lot of cash around with you but keep this in mind as a last resort.

Good Luck


Hope this information is of use

Regards. IVA Experts

[hellybelly]

I have a Halifax cardcash account, no overdraft is offered and thats fine with me!

I have everything i need, a cheque book and no problems with direct debits etc. i have a Visa Electron, which is fine, and most places accept it. The only place not to accept, that Ive come across, is my local authority to pay the council tax online.

[razamataz_]

Hi Lonely,
There seems confusion with so called Basic accounts now as they usually do not have a cheque book only a cash card.

Clydesdale also have a Basic cashcard that is dual and you can have online facility but no cheque book.I once went into local Nationwide and asked for a Basic cashcard account and I could not get through to the adviser that I did not want a Current Basic account, this switch of banks adding in the word Current i think gives them access to using credit ref files.But you need to ask and question every detail as life is full of hidden agendas.
razamataz_

Hi all

I need to apply for a new bank account but I have read conflicting advice. Some people have said that you can hold a current account with an IVA, as long as it doesn't have an overdraft, whereas others are saying it must be a basic account.

Does anyone know which is true?

Thanks.