I have an IVA. Best bank account?

stonechalice

Hi,

I've recently had an IVA accepted. I've been paying comfortably for a few months, when last week, my bank phoned me (First Direct) and informed me that they've discovered I was in an IVA and they don't support customers in any kind of insolvency. They have promptly closed my account and cancelled all standing orders and direct debits. They are also demanding the outstanding overdraft of £250.

My question is, what bank will now take me with my IVA in place? I've been turned down by Natwest and Lloyds for a cash account as I still have an outstanding balance on a credit card with Lloyds, even though it's not connected to my IVA.

Will this affect my IVA in any way as obviously I was paying it by Direct Debit from my (now closed) account. I will need an account that does DD and standing orders in order to carry on paying my IVA! Also will the credit card i still have be notified of the IVA? Bit of a nightmare, any help is appreciated.

Thanks.

National_Debtline

Hello there,

You should open an account with a bank where you do not have any debt outstanding. This is known as opening a 'safe' account. Due to the IVA you *must* specifically request a 'basic' account. You also must keep your insolvency practitioner aware of what's happened - this should hopefully prevent any issues with missed payments under the IVA.

Did you have the overdraft at the time you entered into the IVA? If so it really should have been listed as a creditor.

Best wishes,

David @ NDL.

FinanciallyUnsavvy

Hi there

Take a look at Co-operative's basic bank account - I believe they do accept people with IVAs, so hopefully you should have no problems opening one.

Good luck
x

sourcrates

FinanciallyUnsavvy wrote: »

Hi there

Take a look at Co-operative's basic bank account - I believe they do accept people with IVAs, so hopefully you should have no problems opening one.

Good luck
x

COOP are the only bank now, to my knowledge, that will accept people with an IVA, Barclays used to, but have now stopped.

jaja74

I have an IVA and an account with a group called Think Money. It's a managed account, you get a salary account and a card account. They manage your money for you at a cost of £14 per month. My money goes into the salary account, they work out your outgoings and hold it in that account whatever is left is transferred to the card account where you have a MasterCard debit card. You don't have an overdraft or get charged for letters. You can check balances by txt for free and it's real time. My IVA finishes in June and I have had this account for Five years and they have been brilliant, so much so I will continue to keep my account with them when my IVA finishes. Hope this is useful. Good luck.

sourcrates

jaja74 wrote: »

They manage your money for you at a cost of £14 per month.

:eek:

WOW !!!!!!! that's cost you more than six hundred quid for something you can do yourself for nothing !!! I don't think you should be recommending this account at all !!!

JustAboutThere

jaja74 wrote: »

I have an IVA and an account with a group called Think Money. It's a managed account, you get a salary account and a card account. They manage your money for you at a cost of £14 per month. My money goes into the salary account, they work out your outgoings and hold it in that account whatever is left is transferred to the card account where you have a MasterCard debit card. You don't have an overdraft or get charged for letters. You can check balances by txt for free and it's real time. My IVA finishes in June and I have had this account for Five years and they have been brilliant, so much so I will continue to keep my account with them when my IVA finishes. Hope this is useful. Good luck.

For the amount of money you've been paying them, I certainly hope their service has been "brilliant".

Much better to go with a non-fee paying service.

stonechalice

Thanks to all for the replies. I thought about Think Money but that does seem a good deal of money in the long term for something I can do for nothing with discipline! Didn't like the fact that they require original copies of ID to be sent in the post? I've opted for Co op and awaiting the pack in the post as you can't apply online. Fingers crossed! I've also got added complications due to the fact I've recently moved and all my documentation and ID still has my old address on it. Doh!