Can my bank close my account?

cheapround

Hi Moneysavers

I have an IVA in place but opened my new bank account before it was agreed and put in place as I knew my existing bank would no longer want me! I have a good account up and running with First Direct, it is in credit and always has been and I have never had any problems with this. I do not have an overdraft as part of the IVA agreement.

I have today received a letter advising that they are going to close my account within 30 days as it is part of their normal procedures if they have been notified of any IVA customers.

Is this right as I have not caused them any harm or had any outstanding credit on this account.
I do have another account which I can use but too be honest the First Direct is perfect for keeping us in order.

I would be grateful for any comments.
Thanks

MIVAA

Hi Cheapround,

It would seem that several banks have taken to this policy recently.

I would imagine this is within the banks rights, as they will probably reserve the right to withdraw the account at any time they consider fit. If they consider the fact that you have an IVA as reason enough for doing so, I imagine there'll be little you can do about it I'm afraid.

MIVAA

peachyprice

unfortunately FD/HSBC aren't an 'insolvent friendly' bank, and less are becoming so.

Who is your other account with, you may have the same problem. Friendliest banks are Barclays Co-op, and Natwest to a degree. Although they may only offer you a basic account.

cheapround

peachyprice wrote: »

unfortunately FD/HSBC aren't an 'insolvent friendly' bank, and less are becoming so.

Who is your other account with, you may have the same problem. Friendliest banks are Barclays Co-op, and Natwest to a degree. Although they may only offer you a basic account.

Thank you both for your reponse.
Our other account is with Norwich & Peterborough building society but that was only agreed as a basic banking account with a cashcard. The only problem is that a switch/maestro card is so much easier for food shopping and petrol but I appreciate we should be lucky to have even that!

I did apply for a Bank of Ireland account and did not return the forms as the first direct one was agreed, so I must send them off to see if they offer us a maestro card??