Bank account whilst in IVA

adfax

Hi

I wonder if someone could let me know their experience of bank accounts while in an IVA.

I used to bank with Barclays, but as they were one of my creditors I opened a Co-op account which I have been using ever since I started to apply for the IVA. However, due to the occasional problem with the Visa card issued by Co-op (in some shops and garages it comes up as a Visa Electron card and isn't accepted) I have opened a new Barclays account. The account has been approved with a debit card, and I am now waiting for the new card etc.

I have a couple of questions:

1. Has anyone else gone back to Barclays having included them in their IVA, and have you had any problems. My main concern - I am sure that under the terms of the IVA they shouldn't do this - is could they / would they take money from my account to offset the debt that was included in the IVA? Is this being paranoid, or am I crazy even to entertain putting my money back with Barclays?

To Barclay's credit, they were probably the most reasonable throughout the whole process, and one of their letters said that any other accounts (I have a business account with them) would continue unaffected - which it has.

2. I have read on some threads on this site - mainly regarding people in BR - that they aren't allowed to have internet banking. Has anyone in an IVA got a Barclays account with internet banking, or does this rule apply to IVAs the same as BR?

thanks in advance, Adfax

althas

They may well have approved your account, debit card etc, pre IVA, but I was advised that a LOT of companies will close your account the second they get a sniff of an IVA (and they go through the insolvancy register)

I know you will need some kind of visa card, but to stop the mess around with changing D/D's S/O's etc again and again, open a basic aco!!!! (only cashcard, DD SO and internet banking (mine is with Santandair)), and a prepay visa card

The problem you could have with Barclays as they are a creditor, is when salary payments hit your account, they could well offset them against debts before the IVA goes through. You need a totally seperate account away from any creditor. Trust me it will save a LOT of hastle

adfax

Thanks for the reply. What I didn't make clear in my original post was that I am already into my IVA - it was approved in January. The account has been opened and the debit card approved post-IVA.

Max_1066

I recommend you move the account to a bank which is not a creditor. When all the banks were buying each other I had to change accounts on two occasions a year ago !!

I have a Halifax account which comes with a VISA debit card. You need to check your IVA as some state that you can't have a debit card.

Charco_2

Regardless of whether your IVA was agreed yesterday or five years ago, until the IVA is complete DO NOT PUT MONEY INTO A BANK YOU OWE MONEY TO! The can and will offset it! Legally they may be wrong but all it takes is for them to push a button or two and who is going to stop them? You wont have the money to sort it out in court!

doelani

You should not really have an account with ANY of your creditors once in IVA, you should try and get another account somewhere else.

adfax

Thank you to everyone who has replied.

I will be following the general advice and not putting any money in the Barclays account after all - I will live with the Co-op account and try elsewhere if I decide I can't cope with the Co-op debit card.

james32_uk

Around 3 years ago a lot of us had success applying for a Citibank current account that came with (crap) internet banking and a debit card. May be worth a try still?