Pre IVA Bank account

Nortonred

Morning all,

So yesterday I faced upto my financial issues and got advice. Via CAB I ended up talking to Payplan. To cut a long few hours short I ended up deciding on an IVA. They are now in the process of sorting this for me.

As one of my debts its with my bank I need to move to another bank. Many on here suggest Co-op but the guy at payplan has said they will close it once they hear of the IVA and suggested Natwest instead.

Can anyone on here offer any advice??

Many thanks

Anondebtadvisor

As long as you have the Co op cashminder you will be fine, it is the current account with a cheque book which they can close the account when they find out about the IVA.

Find_The_Real

Natwest will allow their basic account in an IVA but they can be a bit fussy as they do a credit check even though it is supposed to be a basic account (they say it is an identification check but I was credit checked when I applied, at the time I wasn't in arrears so it went though ok). The online banking I have found to be better with Natwest but you are limited to using cash machines that are only RBS, Natwest or Tesco whereas the Co-op allows use of any cash machine.

One thing to note with the Co-op is they have a 3 strikes policy and will close the account if you technically go 'overdrawn' so it is important to always keep the account in a positive balance. The Cashminder account can be applied for either in branch or by ringing 0845 602 7057.

UpToMyNeckInIt

...I've got CoOp's current account + the cheque book - no bother at all. (However CoOp have stated in their 'new' t's & c's that they reserve the right to close my account if the want to). Personally, I don't think they will unless I do anything silly like go into unauthorised O/D or apply for credit with them.

CoOp's Cashminder is perfectly 'safe' as any other apparently, providing you don't need a cheque book, and is probably the best of the high street basic bank accounts.

There was a little debate about CoOp's new policy here:

http://www.iva.co.uk/forum/topic.asp?TOPIC_ID=53314

and

https://forums.moneysavingexpert.com/discussion/4698753=

Worth a read (I initially mistakenly thought 'Cashminder' was also out of bounds for IVA customers, but it appears that it is ok).

Definitely DO NOT switch to HSBC/First direct. They DO trawl the insolvency register and will make you close their account (as they have done with me and many other IVA customers).

Lloyds are also no longer 'IVA friendly' (so I have heard).

You should theoretically be able to switch to any non-creditor bank. Just don't reveal your intention to enter an IVA (no requirement to disclose this).

Have heard that Santander, Barclays and Nationwide are OK as well.

Knowing what I know now, try opening at least 2 'normal' current accounts with different banks. just be sure to do it before your IVA details are on the insolvency register / your credit file, because you will then be VERY limited for choice.

Best of luck.

milliemonster

Why do you need to change your bank account? If you are not with HSBC/first direct there is no need to change at all.

We were with Lloyds/tab before our iva started and I have a full current account with cheque book, just no overdraft facility and it has continued throughout my iva with no problems.

Find_The_Real

Good advice from UTMNII but from my own personal experience I would may be inclined to consider a basic account as one account to apply for as NatWest were informed of my IVA even though I didn't have any debts with them when I entered into an IVA last year.

They stated in the letter they had received notice from the Insolvency Service so I am not sure if this is now standard policy when you enter into an IVA to inform everyone you have an account with or whether it is just a Natwest policy and using the IS as an excuse for their trawling of the register. I do have a Cashminder but they would have known anyway as the Co-op was one of my creditors but I am still able to operate that without off-set, so IVA's are definitely allowed with that account.

As already stated, you are very limited once you have entered into an IVA so I would be prepared to cover all bases before it if you can.

Essex-girl_2

The Post Office have a basic account, you can only open one at certain branches though at the moment. There is a monthly charge of £5 and you can only have a cash card but you can have internet banking.

UpToMyNeckInIt

...worth a look at the following link which provides a nice comparison of some of the basic accounts out there, including some 'card based' accounts for those of you having no luck with a high street bank:

http://www.money.co.uk/current-accounts/basic-bank-accounts.htm

Good luck.

Find_The_Real

Also if you are struggling to find a high street bank account then it is also worth looking at credit unions in the area as well. I was looking at my local credit union just out of interest and they have the same services as a high street bank such as online banking, current, savings, budgeting accounts etc. They charge £1.50 a week for a current account but you get a Visa debit card, direct debits and use of any link cash machine.

Nortonred

Evening all,


I opened a basic account with Natwest and all went through ok but obviously still not on the insolvency register. Fingers crossed they don't close the account once the brown stuff hits the fan.


Many thanks for all your replies.