Need a current account with debit card for undischarged IVA

Squawk_2

Having just had an IVA accepted, my bank of over 20 years closed my current account and have left me without anywhere to pay my salary into or pay by direct debit bills like my mortgage, rates, services etc. My bank says they do not give accounts to undishcharged bankrupts, which includes IVA's. I wasn't actually prepared for this as no-one told me it would happen, and was one of things I went for an IVA instead of bankruptcy.

I also travel a lot with my job and I cannot now book or pay for hotels, so I may even lose my job because I cannot find a bank that will accept me. This includes the Coop Cashminder, but I'm hoping as my IVA is so recent my credit file hasn't had a chance to catch up yet. I've sent my IVA acceptance off to Experian hoping this will help.

I am now at my wits end, I don't even know how I'm going to pay the first IVA instalment if my salary does not get paid into an account. I work for a multinational company and there is no way they are going to pay cash.

So I need a current account with a debit card facility, but no overdaft etc.

Any other ideas?

Jonni2bad

Although some records need updating, the last issued guide to Basic bank accounts suggested that the following could help you...

Barclays - Cash Card Account (DD's only)
Co-Op - Cashminder
Nationwide - Flex Cash Card

These are all BASIC bank accounts, which do give DD and S/O facilities, but do not have cheque books or Switch cards.

I think Co-Op do issue a Solo card, but not all organisations accept this method of payment.

To be honest, I think your chances of getting anything other than one of these is slim to none. All of the other banks' Basic accounts suggest that undischarged bankrupts would be declined - although there is nothing to stop you trying.

THE_LONE_RANGER_4

National Westminster Debit Card Dd So Allowed Also Yorkshire Bank Basic Bank Account

tyllwyd

When it comes to work travel, wouldn't your company be willing to book and pay for the hotels directly, rather than expecting you to book and then reinbursing you?

Squawk_2

As far as work goes they have a company credit card with a major bank, which of course I can't now have, that is supposed to be used and then expenses get paid straight back to the card. They have no way of paying for hotels directly.

I'll try NatWest and Yorkshire although the data sheet I have says they do not accept undischarged bankrupts.

taplady

My OH has the same problem, we are in an IVA but were advised to open a new account before it went through which I did with Lloyds, no problem however my OH left it too late and was turned down when he tried after the IVA went through. Luckily he doesn't desperately need one and is still trying to find someone to accept him.

Squawk_2

Only wish I was given the same advice!

Jonni2bad

THE_LONE_RANGER wrote:

National Westminster Debit Card Dd So Allowed Also Yorkshire Bank Basic Bank Account

Both of these show as declining undischarged bankrupts. The 3 I listed above, whilst no guarantee, do not list that as a reason for refusal.

Is there any way you could use one of the 'pre-pay' [STRIKE]credit[/STRIKE] debt cards? i.e. the ones where you pay into them up-front, for a fee!!??

Squawk_2

Hi Jonni2bad, I've looked at the flexiplus and I'll have to go that route as the last resort to get a debit/credit ?!?! card. Still need somewhere I can get my salary paid into.
Even though I'm trying to get my debt's sorted I feel like a financial leper. With employers only doing direct credits, how on earth are people with IVA's/Bankruptcy supposed to manage? It's not like I'm after any form of credit, I'd even forego the interst paid on balances just so I can have an account somewhere. (Rant over, take a deep breath).

Hitme

Hi,
Is it the fact your old bank were one of your creditors why they closed your account ?. You have me concerned as I'm just about to try to arrange an IVA and have moved all my banking away from Barclays (as I have an overdraft with them) to the nationwide whom I do not owe any money too. Will the Nationwide be told about my IVA ( if it's successful) and will they possibly close my account ??.

Squawk_2

It was my current account with Abbey which had an overdraft, they said they had to freeze it immediately due to me going to a third party to sort out my debts (?). So I had no notice at all that my banking facilities were going to be withdrawn, and with it being in the last half of the month my employee can't do anything as the payroll has already been loaded by then. So I don't know what's going to happen next month re the mortgage or even my first IVA payment as I've not got a current account for my salary to get paid into, bit of a Catch 22 really.
I think you have done the right thing by opening up a new account, but I don't know if like a circular goes round or anything. If I was you I'd just sit tight and don't do anything that would want Nationwide to do a credit search. Nationwide seem to be one of the 3 banks that allow undischarged bankrupts/IVA's so as long as you do not need a debit card the most they'll do is probably downgrade your account to their Flex Cash Card.