Saving with an ex-creditor after completion of IVA - right to set off.

didaiva

Hi,

Would my money be safe if I was to save with an ex-creditor following completion of an IVA? I still have their current account and been successfully transferring £1,000 a month into it and getting £5 every month from it.

I'm thinking of opening a ISA with them, but I'm concerned...

Do they still have rights to set off? Or is the debt completely written off.

I also believe said creditor, Halifax, went on to sell the debt to Max Recovery in the end too.

What about savings in Lloyds Banking Group too, would they be safe?

Thanks in advance for any advice here.

milliemonster

Now legally, once you have your completion certificate then the debts are written off so they do not have the right to set off anymore as the debt doesn't exist. However, there have been cases where this has happened and people have had to fight to get their money back. I think this has particularly happened with PPI reclaims post IVA completion where previous creditors have set off the reclaim money against the old debt instead of refunding it so it is a bit of a grey area.

I personally wouldn't feel completely comfortable saving all my money with a previous creditor in the first few years after an IVA

didaiva

I'm now looking into the AA Cash ISA, its one of the best rates at 3.05%, but concerned as it is run by Birmingham Midshires, which looks like it's part of HBOS as well.

I have a certificate of completion, I don't have any PPI claims, and have no intention of making any claims now. That would not be cricket considering they have had to write off a proportion of my old debts.

I guess I'm just a little nervous having saved up a good chunk of money since the completion of my IVA for me to put it with a old creditor, or any other linked organisation for them to take it back from me.

Probably worrying over nothing as you say legally the debts are written off.