Bank Account offering direct debits whilst in an IVA.

Pete*G_4

OK firstly, before saying anything else, I have looked through a large number of threads on the board, and am still "stuck" so-to-speak.

I am currently 32 months into my IVA, and due to an ongoing dispute with my bank, Barclays, I have drafted in the Ombudsman (long story but basically originates from Barclays refusal to acknowledge the success of my IVA proposal/application despite the fact they were present at the meeting). As a result, Barclays have issued me with a 28 day notification of closure, and are withdrawing my current account (unsurprisingly they aren't closing my ISA, Savings Account, or my daughters CTF) as of the 1st June.

I've been looking round for a couple of weeks, researching on here and elsewhere online, and as I require the facility for Direct Debits (paying my bills this way saves me £15.50 a month) I had settled upon a NatWest STEP account, as apparently you can still get one if you're in an IVA etc. and they're easy enough to apply for online.

I found the application link on NatWest's page, and put in my details. Almost instantly it came back that I had been declined an account, with the reason listed as being BANKRUPTCY. Now I have never been bankrupt before anyone asks, and actually have never come close. I was seduced by a TV advert at a naive point in my young life, and with hindsight wouldn't have entered an IVA... I'd have "manned up" and negotiated a slightly lower monthly amount and then worked three jobs to pay it off (as I do now to provide for my daughter )

Question is, having just applied and been declined, it'll show on my (already appalling) credit history and thus affect my chances of opening an account somewhere. I need to get an account with DD facility ASAP as I am now rapidly running out of time to get one sorted before I need the DDs transferred over!

Sorry for the essay, I do tend to waffle at times

Thanks in Advance

CLAPTON

An IVA is a form of bankruptcy

No, being declined by Natwest won't significantly affect your ability to apply elsewhere.

I'm amazed however, you have savings with barclays; I'ld suggest you move them tomorrow.

Pete*G_4

I am aware that some see an IVA as a form of Bankruptcy, however I am also aware that Barclays for example were happy enough to keep me on as a customer when I first discussed entering into an IVA, yet if I had taken out full bankruptcy (which would have been less hassle with hindsight) I would have had my account withdrawn immediately. Some must see an IVA differently to becoming full-blown BR.

Oh and the balance of my savings account with Barclays currently sits at £1.43, so hardly a lifechanging amount if I lose it I've had the savings account for years, when I first started with them. Slowly the deal got worse and worse in comparison to other banks so I moved my savings into my current account and paid for part of our wedding last year.

Just annoyed that on several websites, here included, the STEP account is recommended as being suitable for people in an IVA, and yet when I apply I am deemed ineligable due to mine!

Does anyone know of a BBA that has a DD facility and doesn't charge you a monthly fee such as the likes of CardOne etc?

elfen

Co-op Cashminder springs to mind.
As does the Nationwide cashcard accout (used to have one, used to have DD's set up on it) The Nationwide one you can go in-branch, think you can do it online, as with the Co-op one

Pete*G_4

Do Abbey allow those with IVAs to open their basic account?

jonesMUFCforever

Some banks will offer you basic accounts with Direct debits.

Deep_In_Debt

Barclays are BR friendly for their basic account which comes with a debit card. Even if you owed them money, they should still open an account for you. It may not come with online banking though if that causes a problem but I think it comes with telephone banking instead.

Make sure though that they put you through for the basic account though otherwise you will be rejected as they will put you through for their normal account. Think you need to open it in branch and take some ID with you but you can get your account number on the spot...just need to wait for the card and PIN no. to arrive.

zx2011

Try YBS's Cash Transactor account: http://www.ybs.co.uk/savings/easy_access/cash_transactor.html

Comes with direct debits, standing orders, LINK ATM card(or passbook). Can be used at any Britannia or YBS branch.

Pete*G_4

Deep_In_Debt wrote: »

Barclays are BR friendly for their basic account which comes with a debit card. Even if you owed them money, they should still open an account for you. It may not come with online banking though if that causes a problem but I think it comes with telephone banking instead.

Barclays are a no-no. They're utterly incompetant, hence I've brought the Ombudsman in to sort them out, leading to this petty response to close my account.

At present I'm owed approx £485 by them where they took funds from my "main" current account and refused to freeze my 'other' account stated on my IVA, claiming I wasn't in an IVA at all and that I was making it all up... Despite them being at the creditors meeting and sending me confirmation letters etc :wall:

Quite frankly, I wouldn't entrust them with looking after a single penny of my money any more.

System

Why have you still got any funds Barclays then? Perhaps I'm missing something...

YBS Cash transactor will give Direct Debits and an ATM Card.
You could also get an internet saver with ATM Card & 2.1% to keep your funds.

Pete*G wrote: »

Barclays are a no-no. They're utterly incompetant, hence I've brought the Ombudsman in to sort them out, leading to this petty response to close my account.

At present I'm owed approx £485 by them where they took funds from my "main" current account and refused to freeze my 'other' account stated on my IVA, claiming I wasn't in an IVA at all and that I was making it all up... Despite them being at the creditors meeting and sending me confirmation letters etc :wall:

Quite frankly, I wouldn't entrust them with looking after a single penny of my money any more.

Pete*G_4

Heng_Leng wrote: »

Why have you still got any funds Barclays then? Perhaps I'm missing something...

YBS Cash transactor will give Direct Debits and an ATM Card.
You could also get an internet saver with ATM Card & 2.1% to keep your funds.

I still have funds with them because I'm in the process of finding alternative banking arrangements, hence this thread

Up until last month I never had an issue with them really, they were happy enough to keep my account open whilst supposedly "investigating" my complaint that my 1st account should have been blocked/frozen as agreed due to the IVA in place. They were also happy for me to open a savings account and a Cash ISA within the last twelve months. It's only since they came to the "conclusion" that I wasn't in an IVA, and thus that the account was illegally overdrawn, that they then ran off with a bunch of money - at which point I went to the ombudsman. Its then (after I told them I'd gone to the ombudsman) that they then got petty and served me with notice to close my 2nd account (the one I use for wages, DDs, SOs, bills etc).