NatWest overdraft with IVA

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LeeRogers84

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Post by LeeRogers84 » Tue Sep 10, 2019 8:36 pm
Hi, I opened an Iva with creditfix last month and this month was my first payment.. when setting up the Iva I was told I could keep my account with NatWest along with the overdraft, I asked for it not to be included in the Iva as I was happy to pay it back over time along with my car payments, I was told this was no problem.. today NatWest has frozen my account which has nearly £900 in there which is basically every bill/rent/payment I have to pays money and the over draft with NatWest is £1500, the text I received stated that it was frozen until they had confirmation from my insolvency practitioner to say I am able to keep the account during my insolvency. Will NatWest unfreeze my account and allow me to pay the overdraft back monthly?

Thanks in advance for any help

kallis3

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Post by kallis3 » Tue Sep 10, 2019 8:50 pm
Hi,

You should not have an overdraft in an IVA - it should have been included and you should have been told to open a new account and transfer everything across.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley.
http://kallis3.blogs.iva.co.uk

LeeRogers84

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Post by LeeRogers84 » Tue Sep 10, 2019 8:58 pm
I was never informed of any of this when opening my Iva, am I to assume that NatWest won’t release any of the money in my account now?

abbiesmum2003

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Post by abbiesmum2003 » Tue Sep 10, 2019 9:56 pm
As said should not have any credit with a IVA which includes an overdraft (you cant pick and choose which debts you include/dont include)
It Should have been included in the IVA and you shoukd have been advised to get a new account with a bank you have no credit links too and one with only basic features (no additional services or OD).
Hopefully they will unblock account amd release funds but need to get a new account with a non-creditor asap and transfer your essential direct debits and salary.

Foggy

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Post by Foggy » Wed Sep 11, 2019 6:57 am
Some banks, on hearing of the IVA, treat this the same way (in error) as bankruptcy, where everything is frozen until released by the OR. Usually a call to the bank explaining their error puts things right.

However, CF have dropped an almightly clanger here in excluding a debt. Which they should not do and the bank are within their rights to cancel any overdraft facility as you are no longer creditworthy.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
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Lisa Thomas

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Post by Lisa Thomas » Wed Sep 11, 2019 8:39 am
Are you absolutely certain that was the advice you were given?

Did you get it in writing?

Are you sure the overdraft is not included in your list of creditors?
I'm a licensed IP with 16+ yrs at Neville & Co covering the South West area. I have a YouTube channel with advisory videos on here: https://www.youtube.com/channel/UCMPTTu ... Z5k9ZcC2MA http://www.nevilleco.co.uk 01752 786800 Lisa@nevilleco.co.uk

kallis3

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Post by kallis3 » Wed Sep 11, 2019 9:11 am
Double check your paperwork and see what it says. It could be you need to speak to CF.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley.
http://kallis3.blogs.iva.co.uk
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