Online banking access withdrawn

Get expert opinion. This is the place for new questions to be posted.
5 posts Page 1 of 1
AgentJ
Posts: 5
by AgentJ » Tue Jun 12, 2018 8:16 am
Good morning

I recently entered into an IVA, where 3 accounts with one of my banks fell outside of the agreement due to being secured (mortgage etc) and a business account. There are no overdrafts or loans in place with them. So the bank in question were not affected.

Once notified of the IVA however, the bank have withdrawn all access to my online and telephone banking. When I complained, they stated that is is their standard procedure for all IVA and bankruptcy cases to put a marker against the person’s name, which then affects all accounts.

I emphasised that there was no adverse impact to them of my having online/telephone banking and asked if I could even just have viewing access to check transactions and balances, however, they stated that their online banking system only allows for all or nothing, with no ability to instead add restrictions or limitations on the facilities within online banking.

I’m guessing that they can do what they want regarding online/telephone banking rights, but any advice on the legalities of this, if applicable, would be appreciated please. Whilst I can cope with paper statements for the mortgage, it is making it impossible to run my business.

I have put my complaint in writing and await their formal response. Depending on what they say, I can then decide on any further course of action.

Many thanks in advance.
User avatar
Foggy
Forum Expert
Posts: 27085
Contact
by Foggy » Tue Jun 12, 2018 8:26 am
Some banks do mistakenly treat an IVA in the same way as BR, but usually restore access when corrected. Freezing accounts is a matter of BR regulations, rather than the banks policies. However, this bank seem to be taking an unusual approch (unless it is HSBC or First Direct, who often do this). It would be interesting to know which bank this is, so others here can avoid them, if this has become their official line.

I would ask the bank to show you, specifically, under what regulation or section of their Terms & Conditions they have taken this action. You need to know this before you can judge the legality of their action.
AgentJ
Posts: 5
by AgentJ » Tue Jun 12, 2018 8:32 am
Foggy wrote:
Some banks do mistakenly treat an IVA in the same way as BR, but usually restore access when corrected. Freezing accounts is a matter of BR regulations, rather than the banks policies. However, this bank seem to be taking an unusual approch (unless it is HSBC or First Direct, who often do this). It would be interesting to know which bank this is, so others here can avoid them, if this has become their official line.

I would ask the bank to show you, specifically, under what regulation or section of their Terms & Conditions they have taken this action. You need to know this before you can judge the legality of their action.



Thanks Foggy.

It is Barclays, who I have banked with for years!

My business account is in good standing, as are our joint accounts for our mortgage and mortgage reserve accounts (which are secured).

I have an appointment with Lloyd’s today to see about a business account switch. Not holding my breath, but worth a shot as it’s an in-person discretionary decision.
User avatar
Foggy
Forum Expert
Posts: 27085
Contact
by Foggy » Tue Jun 12, 2018 8:38 am
AgentJ wrote:
Foggy wrote:
Some banks do mistakenly treat an IVA in the same way as BR, but usually restore access when corrected. Freezing accounts is a matter of BR regulations, rather than the banks policies. However, this bank seem to be taking an unusual approch (unless it is HSBC or First Direct, who often do this). It would be interesting to know which bank this is, so others here can avoid them, if this has become their official line.

I would ask the bank to show you, specifically, under what regulation or section of their Terms & Conditions they have taken this action. You need to know this before you can judge the legality of their action.



Thanks Foggy.

It is Barclays, who I have banked with for years!

My business account is in good standing, as are our joint accounts for our mortgage and mortgage reserve accounts (which are secured).

I have an appointment with Lloyd’s today to see about a business account switch. Not holding my breath, but worth a shot as it’s an in-person discretionary decision.


Hmmm ... we have had posters, in the not too distant past, who have been granted business accounts with Barclays, whilst still in an IVA, admittedly after the intervention of the Branch or Business Manager (as "computer usually says No" ).
Good luck with Lloyds.
User avatar
MerlinL14
Posts: 1461
by MerlinL14 » Tue Jun 12, 2018 3:10 pm
I was with Barclays from year 4 in my IVA and found them to be very supporting of the fact I was in an IVA. Only got a basic account to start with, but almost as soon as my IVA dropped off the Insolvency register (3 days after final payment!) my account was upgraded to a full current account without my intervention. I have since had a Barclay Card credit card and opened another account to deal with my car PCP and mileage reimbursement, again a full current account. Initially I did sit down at a branch and talk with one of their financial customer service managers, who was a well informed and non judgemental lady.
5 posts Page 1 of 1
Return to “Ask IVA Forum and Industry experts”

Who is online

Users browsing this forum: No registered users and 30 guests