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IVA Advice on HSBC/HFC

edited 30 November -1 at 1:00AM in IVA & DRO
12 replies 3.5K views
pikotw888pikotw888 Forumite
5 posts
edited 30 November -1 at 1:00AM in IVA & DRO
I am currently about to enter into an IVA, of which part of my debt is owed to HFC Bank (Part of HSBC Bank PLC), the best part of £8000.

I also hold a HSBC current account, which is in good standing, but has a £1000 overdraft.
I intend to cancel this overdraft before I enter into the IVA, as I need a account to use while I am in my IVA, and legally i cannot have credit while I am in a IVA.

I would like to know if I cancel my Overdraft, and keep my current account open, will HSBC still find out and close the current account, how good is their data link with HFC, and can HFC touch any money I put in the account? I really need to keep this account open, because I use it to send money to my parents abroad.

Any advice would be greatly appreciated.

pikotw888
«1

Replies

  • Hi Pikotw888 :hello:

    Welcome to the forum, who is your IVA with and have you done sufficent research to make sure an IVA is RIGHT For You?
    Click here for Martins (MSE) advice on who to contact with Debt Issues - YOU HAVE NO REASON TO USE A FEE PAYING DEBT MANAGEMENT COMPANY- THEY CANNOT DO ANYMORE FOR YOU THAN THOSE LISTED IN MY LINK ABOVE.

    All information given by myself is offered informally and without prejudice - if in doubt seek help from a qualified and insured professional
  • moneysavingplumbermoneysavingplumber Forumite
    832 posts
    Part of the Furniture Combo Breaker
    ✭✭✭
    You'll need to open a new account and start having all your income paid into that asap, if you owe HSBC then the moment you propose the IVA to them they will withdraw the facility.

    My IVA had about £8,000 owed to First Direct including CCs and OD, as soon as I defaulted I could get no banking facilities with HSBC. I had a Nationwide Flexaccount throughout my IVA (cheque book but no debit or cheque card), you may not be able to get this now, alot of people on the Bankruptcy board talk about the Nat West Step or a CO-OP account, which I think can still pay standing orders etc.

    Have you read MSE Martin's thread on IVAs to make sure it is suitable for you? I assume you have assets or a job to worry about if you are considering IVA. The Bankruptcy board has lots of opposing views on IVAs, mostly against it has to be said. It suited me but is apparently only suitable for 3% of people so check all the options.
  • My circumstance however varies to yours.
    MY IVA debt is to HFC Credit Card (GM Platinum Mastercard)

    My hsbc account is in credit, and no overdraft is owing, and the account is already open. I am not looking to open a new account, just keep the one I still have.

    pikotw888
  • pikotw888 wrote: »
    Have you compared their fees to those charities listed in my signature who also offer IVAs?

    I take it you have either a job or assetts to protect?

    This site has numerous threads from members who have been mis sold an IVA, I just want you to be certain you "Qualify" for an IVA.
    Click here for Martins (MSE) advice on who to contact with Debt Issues - YOU HAVE NO REASON TO USE A FEE PAYING DEBT MANAGEMENT COMPANY- THEY CANNOT DO ANYMORE FOR YOU THAN THOSE LISTED IN MY LINK ABOVE.

    All information given by myself is offered informally and without prejudice - if in doubt seek help from a qualified and insured professional
  • moneysavingplumbermoneysavingplumber Forumite
    832 posts
    Part of the Furniture Combo Breaker
    ✭✭✭
    pikotw888 wrote: »
    My circumstance however varies to yours.
    MY IVA debt is to HFC Credit Card (GM Platinum Mastercard)

    My hsbc account is in credit, and no overdraft is owing, and the account is already open. I am not looking to open a new account, just keep the one I still have.

    pikotw888

    I'm not sure that makes any difference, I think HSBC would have withdrawn facilities from me even if it was just the First Direct Credit Card that was included in the IVA, I would advise you to find out for sure as there is a possibilty the credit in your account could be taken, your IP should be able to advise you on this.

    Although I had a good IVA experience I would agree with 10past6 that you really should think twice and check out all the options before entering into the agreement.

    Just checked the link for this company and their 'about IVA' section, it's a little misleading in that it suggests that details are not publicly disclosed as although your name isn't announced in the local paper it still goes onto the Insolvency Register for the duration of the arrangement, and anybody can search it online and see your circumstances.

    Just out of interest, are this firm charging an upfront fee?
  • oscar52oscar52 Forumite
    2.3K posts
    HFC/HSBC no longer own their credit cards, although they are still administering themn at the moment. Most were sold to SAV credit, however some were sold to MBNA.
    No Longer works for MBNA as of August 2010 - redundancy money will be nice though.

    Proud to be a Friend of Niddy.
    no idea what my nerdnumber is - i am now officially nerd 229, no idea on my debt free date
  • Does the fact mean that because HSBC are no longer owning their credit cards, the liklehood is, I should be able to keep my HSBC account open with no worries?
  • Not sure what the answer is but we had credit with HFC via MFI for a sofa.
    We did not realise that HFC were part of HSBC and when we moved bank accounts we chose to open a basic account at HSBC due to it's locality and no links to our creditors(We thought)
    Anyway when we proposed an IVA we enquired about the link and if it would be problamatic. We were told that HFC and HSBC although grouped were seperate entities so no problem apparently HFC is an American bank.
    Not sure how true this advice was but we have had no issues to date and have been banking with HSBC for over 6 months now. HFC would have seen we banked with HSBC on our IVA proposal so i would have thought if anything was going to happen that would have been the time that it would have done but nothing happened and HFC have just recently sold the debt on to a DCA just waiting to find out which one:rolleyes:
  • I didn't think you were allowed to keep your existing bank account when you went in to an IVA although I may be wrong. The NatWest step account comes with a Solo debit card which most places take. Good Luck with everything though
    :grinheart I'm getting there...... slowly but surely
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