Banks and IVAs

[19ryanh93]

All

I am going forward with an IVA and i have been told that as one of my debts is with HSBC i have to close the account down

Is this a must or just advisable?

Thanks

[Foggy]

It is always advisable to change accounts if your bank is a creditor, to remeove the 'temptation' for them to offset bank balance against the debt !

Additionally HSBC ( and First Direct) are well known for closing accounts (often without notice) of those in an IVA, even if they are not a creditor -- they are simply 'IVA-unfriendly' !

[19ryanh93]

Thanks for the reply.

Bit of a pain i guess, ill get working on sorting it then.

Just need to tell everyone my account details are changing.

[Mrs_Brown]

I moved to co-op and whilst I am sure they could have done a switching over process for me, I did it myself. It wasn't too bad as most of the people I pay I was able to log in online and add new info. I also have a Monzo account and have never had any issue from there despite being in an IVA. Before this I was with first direct who are part of the same family as HSBC.

[Foggy]

I advocate manually changing over, rather than using a switching service. It is a pain, but it stops old DD's etc. on loans and the like 'following you' to the new account. We have had a few occasions where even a cancelled DD authorisation has been acted upon by a new 'switched' account.

[kallis3]

I agree with Foggy - you need to open a new account on your own - Co-op come highly recommended but you need to open it in store.