My new bank account has been frozen. Benefits due into this account this week.

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sarah841
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by sarah841 » Sun Jul 09, 2017 12:10 pm
Hi I've taken out an IVA and have paid the first payment on 1st June. I opened up a new bank account before I knew if I was accepted or not as was advised to do this. This all went through ok. Today however I have just found out my account is frozen and I have to call an insolvency team with my bank tmw. I do have a £300 overdraft facility with my new bank so am wondering if it is because of this. Can you advise?

Will I be able to us my new bank account anymore? Concerned single mummy with benefits due into this new account this week.
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Foggy
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by Foggy » Sun Jul 09, 2017 12:14 pm
Who is the new account with ? You should only have a basic account with no overdraft facility.

Speak to them and ask them why they have frozen it --- some bank employees think that an IVA is the same as bankruptcy and freeze the accounts in error. However, some banks simply do not like IVAs ( HSBC and First Direct).
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kallis3
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by kallis3 » Sun Jul 09, 2017 3:46 pm
Agree with Foggy - check with your new bank and also speak with DWP about your benefits.
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Michael Peoples
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by Michael Peoples » Mon Jul 10, 2017 8:07 am
It is possible that you opened the new account with the same bank. Many banks have different trading names but are the one large operation such as Lloyds TSB, Halifax and Bank of Scotland. All the one company although the TSB part has I believe been sold off.
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