Closing bank accounts

Come_on_u_blues

Hi we bank with natwest and barclays got a loan with both of them ,the loan repayments go out direct debit. Now opened a new one with the co-op ready for starting an iva so the only thing left is the direct debits for the loans. Can we close them ourselves or will they not let us because of the direct debits . thanks if anyone can help

FoggyBrain_2

Hi. Just cancel the DDs, empty the accounts and then leave them dormant -- the banks will close them themselves once the IVA kicks in.

Having said that -- I was with Halifax, who are one of my creditors, I emptied the account, and cancelled all DD's etc and moved everything to the Co-Op. My Halifax account is still open and functioning, so I am keeping a few quid in there to see what happens.

Come_on_u_blues

will they just let u cancel them tho being they are payments for thir loans

FoggyBrain_2

I doubt that they'd put two and two together. My lot didn't (my Halifax loan was paid by DD from my Halifax account) But then, they still haven't noticed !!!!

smartiedriver_2

The bank I work for will not permit the cancellation of DDs or SOs to any in-house debt. However, they will cancel them automatically when the IVA is accepted and the creditors are advised.

adyj73

smartiedriver wrote: »

The bank I work for will not permit the cancellation of DDs or SOs to any in-house debt. However, they will cancel them automatically when the IVA is accepted and the creditors are advised.

Agreed!! I had a loan with Natwest and I cancelled the direct debit from my Natwest current account to the loan account just prior to IVA and they still tried to take it the fools LOL

to be honest I don't see the point of the question? why would you try to close accounts that will be frozen and closed by the bank anyway?? seems a waste of your own time

erdd2

smartiedriver wrote: »

The bank I work for will not permit the cancellation of DDs or SOs to any in-house debt. However, they will cancel them automatically when the IVA is accepted and the creditors are advised.

SOs are intended to be controlled by the customer....which bank do you work for...not being rude, just want to avoid it.

erdd2

FoggyBrain wrote: »

My Halifax account is still open and functioning, so I am keeping a few quid in there to see what happens.

Your account will remain open until you provide signature with request to close.

adyj73

erdd2 wrote: »

SOs are intended to be controlled by the customer....which bank do you work for...not being rude, just want to avoid it.

They have some terms and conditions about in house debt - basically they can pilfer other accounts you may hold in the same banking group to pay o/s loans etc. Technically it's not the S/O just them invoking their terms. Best thing to do is open another account at another banking group before you start the IVA process and change your salary over BEFORE all the !!!! hits the fan :rotfl:

erdd2

adyj73 wrote: »

They have some terms and conditions about in house debt - basically they can pilfer other accounts you may hold in the same banking group to pay o/s loans etc. Technically it's not the S/O just them invoking their terms. Best thing to do is open another account at another banking group before you start the IVA process and change your salary over BEFORE all the !!!! hits the fan :rotfl:

Ahhhh is this a condition in relation to IVAs?

adyj73

erdd2 wrote: »

Ahhhh is this a condition in relation to IVAs?

nope it's nowt to do with a IVA - If you are a customer at a bank and you miss payments they can pilfer any other in credit accounts at the same bank regardless of any IVA's etc - it's just written as standard in their terms and conditions.

Basically if you know you are going down the pan if your loans are with the same banking group your salary is paid into you need to open an account with another banking group ASAP and redirect your salary before you start struggling....or else if they get wind of your problems they can basically LEGALLY empty ANY accounts (within their group) in credit to pay o/s debts....