hi all,
we are currently getting all paperwork together to start the iva process.we have had to set up a new bank account.we have opted for hsbc and transfered all essention direct debits, wages etc. im now getting worried that our creditors may have some connection to the bank and beable to take money from it. we owe to natwest,barclays,santander and halifax.Iv tried to look online but cant find any information. Any advise would be greatly appreciated. thankyou!!
Last edited by vimtolil on Tue May 08, 2012 10:17 am, edited 1 time in total.
Avoid HSBC as they tend to discriminate against those in IVAs and demand they move their business elsewhere. I would suggest a CoOp Cashminder account and this can be opened quickly over the phone.
thanks for the quick reply.not good then, as iv already set everything up and my wages will have to be paid into this account would we beable to set up a co op account when the iva is set up or will they likely refuse us? how would the bank know i was in an iva,would it be thru the direct debit? could i transfer the funds to another account and have the iva taken from that? sorry in advance for so many questions.
vimtolil - if the bank credit check or search the insolvency register your IVA will be mentioned on there. Yorkshire building society has a saver account which allows DD and S/O to be taken from it.
It is often suggested to set up your new account before the start of the IVA as it gives more options on the types of accounts on offer - also you may be lucky for them to offer a "full account" - as you can truthfully ignore the IVA question
The Co op cashminder is a good option and you will beable to open this account prior to entering your IVA or after you IVA has been accepted.
HSBC have been known to close accounts when they find out a customer is in an IVA or an undischarged bankrupt. They can find out through credit checking or the insolvency register at any time.
As michael suggests you may prefer to open another account and transfer you wages and direct debits.
PJG Recovery have a free online advice channel at www.debtadvicetv.com. If you are ready to ask us for specific advice or help, then get in touch at www.pjgrecovery.com/contact-us.asp . I look forward to speaking to you.
I think the Coop would be a good option for you. I appreciate it's a hassle to change it again but best to be safe than sorry. If HSBC do ask you to move accounts which is likely then you'll have it to do anyway. Give Co-op a ring be worth it in my opinion.
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.
As others have said HSBC and First Direct are well known for their automatic closure of accounts for those people who enter IVA or Bankruptcy.
We were in the position at the outset of our IVA and thought we had it all sorted, within three weeks we were sent a letter saying our account would close automatically in 14 days times.
Smile Current Account (internet bank) - part of the Co-Op were brilliant and allowed us to open an account with them with a Visa debit card and a cheque book.
Halifax also allowed us to open a easyCash account with a Electron card.
Good luck.
Sharing from experiences of dealing with debt
There is a solution for everyone .... Just need to stay positive !
Hi,
HSBC were actually recommended to me by my IVA company - i set up my new basic account before my IVA began, and 5 1/2 years later I've had absolutely no problems with them - maybe I've just been lucky?! I am, however, now thinking of changing accounts as I desperately need a debit card, which is not offered with HSBC's basic account. I'm in 2 minds as to whether to go with the coop or wait until November when my credit file will be clear and my IVA will have dropped off and just try to upgrade with HSBC.
Best of luck with whatever option you take, but I can certainly say I have had no problems with HSBC and have always found them more than helpful!
