Current Account in IVA

john10001

What happens to a standard current account you have with an institution "you don't owe anything to" once you enter an IVA?

Do they simply remove overdraft facility and cheque book if you have those options on the account, do they reduce it to a basic account, or do they close down the account in some cases?

UpToMyNeckInIt

If you are lucky enough to have such an account, stick with it.

You should however ask for your overdraft facility to be withdrawn (or reduced to the £500 credit limit you are allowed within an IVA).

I too have a 'normal' current account - no bother whatsoever.

The only exception to my knowledge is if this account is with HSBC/First Direct (particularly if you are a recent customer). One whiff of an IVA, and (I speak from experience here) they will give you 60 Day's notice to close your account.

Another HSBC victim reckons they trawl the insolvency register periodically and 'find out' that way. (Personally, I think the standing order to my IVA company was a bit more of a giveaway!!!).

UpToMyNeckInIt

I am not sure if anyone else has posted about this recently, but I understand from a forum post by an IP, that Lloyds TSB Bank plc is withdrawing all facilities from IVA customers.

Anyone already banking with Lloyds may be sensible to seek alternative banking arrangements sooner rather than later.

Shame on them.