Quick bank query

FoggyBrain_2

In readiness for IVA I have opened two Co-Op cashminder accounts. I have also been accepted for a Nat West Current account with chequebook (no g'tee card though).

My plan is to use one Cashminder for DD's and servicing the IVA, then sweeping our allowances into the second one ( then draw grocery money at the beginning of each month to put in the "pot" ). The Nat West is for those odd times when only a cheque will do, so transfer money in and write cheque out.

Now ... they obviously did a credit check when we opened the account, which we, surprisingly, got through. Do they periodically re-check and might then withdraw the account at any time once the IVA is recorded??

Not a big problem if they do -- but the underlying plan was to keep that account bubbling along for the five years -- then, when IVA is done and dusted, start using it as our main account --- when, as far as Nat West will be concerned, the account will have been run "properly" for 6 years and they will happily upgrade.

FavDaughter1

Hi, we're new to all this too but I think if you've got a basic bank account at the Natwest you should be fine as long as you don't go overdrawn. I'm sure someone who knows more will be along to help.

hope things are going ok with the set up! we opened our new basic bank account before going into the IVA path,I'm so glad we did that right away- thanks to advice here.

Max_Maxwell

Something you do need to be aware of is that cheques are
classed as a 'credit' facility and under the terms of your IVA
you're not permitted to undertake any further credit. That's
why the co-op account offers no cheque facility. I have an
old bank account with a cheque facility that pre-dates my
IVA but I don't use cheques on it. I just transfer money in
and out each month to keep it 'live'.

FoggyBrain_2

Interesting line of thought, Max. Thank you. But, surely, if you have no g'tee card, in theory you can only write a cheque to transfer money you already have. Therefore no credit is involved.
As an aside, my IVA proposal (yet to be agreed) says I can still get credit ( if anyone is daft enough to give it) up to £500, anything over that I will need my Supervisors permission.
In any event, as you do, Max, the main aim is just to keep it "live" for the 5 years IVA plus the year waiting for my file to clear up, for use in "better days".

Max_1066

I don't believe a cheque on its own is credit, simply a 'promise to pay' ?

I opened three Halifax current accounts online all with cheque books and a small overdraft facility (which I didn't use) just before I went into the IVA. I wanted to ensure I had a decent account up and running for when the IVA finished.

Max_Maxwell

A 'promise to pay'?

Isn't that what we all said once?!