citizens advice involved, cc company wont freeze account

Milly2108

In process of carrying out a debt relief order, have had initial meeting and paid the £90 fee. have contacted credit card company as asked to request that until final citizens advice appointment is carried out account could be frozen as cannot make the payment currently due to paying for relief order. cc company has stated that they will not freeze account until we carry out a full income and expenditure on the phone despite being told that we cannot do this until the citizens advice appointment. not entirely sure what to do can anyone help?

Partner is really worried about defaulting as he has current account with same company as credit card and after missed payment period of a few days they will automatically take from current account leaving him overdrawn or with no accesible money for food/childrens school meals etc

matttye

Your partner needs to open an account with a completely independent bank to the one he's currently using. As in right now!

E.g. Lloyds, Halifax, TSB etc. are all part of lloyds banking group, so he shouldn't use any of them if he's currently with any of them.

Milly2108

we live in a small town but there is a barclays he could open an account with if this isnt connected to TSB

matttye

Milly2108 wrote: »

we live in a small town but there is a barclays he could open an account with if this isnt connected to TSB

Barclays is separate yeah.

He needs to move his existing money and also have wages/benefits/etc. paid into the new account so that TSB can't take the money out of the account.

That will avert the immediate risk and give you more time to think about what to do next.

mum2one

companies dont have to freeze interest, they do it as good will gesture, I echo the advice you have been given about getting a new account asap, your better off cancelling any direct debits in existing accounts, get the money out and your be able to start a fresh,

fatbelly

Good advice from Mattye as usual. I got this ready to post, then got distracted...

Hi

There's no point worrying about interest being frozen on a credit card if it's going in to a DRO.

However, it is highly likely that the bank concerned will freeze the current account when the DRO is granted and so he should open a new account for his income and essential direct debits, with a bank not connected to his debts.

If the 'connected' current account is overdrawn, then it goes into the DRO.

From the Intermediary Guidance:

Intermediaries should also advise debtors that they must make their own arrangements in respect of the operation of any bank accounts following the approval of their DRO application. If a DRO is granted, a debtor’s bank account will not necessarily be frozen. It will be for the bank or building society to decide whether or not to allow the debtor to continue operating the account. Although it is a matter of public record, the Insolvency Service will not be contacting a bank or building society unless they are a creditor. Intermediaries should advise debtors that their bank accounts may be affected by the making of a DRO, however this will be determined by the policies operated by the said financial institutions. Applicants should also be reminded that any monies in the account on application for a DRO will be considered as contributing towards the total level of assets after deduction of normal living expenses.

Is this just his DRO or are you doing one too?

Milly2108

I have a dro but it was processed in august so is all complete. this is purely his. that makes sense to remove the option. the account is not overdrawn that is linked to all direct debits/bills but it is connected to the credit card so if the money is not paid to the credit card it will automatically be taken from the current account. so all of your advice about changing banks seems the best option