Can a bank withhold your money on an IVa?

Mr_Bojangles_3

I entered into an IVA on 14/12/20, it was suggested to open a new account with a new bank. I have done this with TSB, I then transferred money to this new account. They are not allowing me access to these funds without a letter from my IP (step change) giving me permission to access the funds. Are they allowed to do this? I’ve spoken to step change and they said they’ll sort a letter but they’re inundated at the moment. 

Thanks for any help 

Retiredwelshman

Yes I think they can.
If they paid out monies that the IP thought should have been put against your debts then they could be liable for that amount.
You will need that letter.

sourcrates

Never heard of that before, didn’t happen to me.

Retiredwelshman

Maybe it depends on how much the OP transferred to the account?

Mr_Bojangles_3

Retiredwelshman said:

Maybe it depends on how much the OP transferred to the account?

£1000, money set aside to pay towards my self-employed income tax. Something my IP is well aware of. Looks like I’ll be late paying my tax unless I get the letter tomorrow or Friday 

Nodding_Donkey

No they can't, they are confusing an IVA with bankruptcy.

Mr_Bojangles_3

Just an update on this. I took my permission letter in person to the bank at 9am yesterday, I was told by the branch manager it would be forwarded to the relevant department. As it stands more than 24 hours later I still cannot access my money. I've now emailed the chief executive and the "executive complaints dept" are looking into it. 

I think as soon as I do get access to it, I'll be moving it straight out of there. Absolute sham of a bank

Mum2Boys_2

When I owed money to Halifax they refunded the money straight away as they said they would never be able to prevent someone accessing funds they they need, I would assume your tax bill is a priority. 

Mr_Bojangles_3

Mum2Boys_2 said:

When I owed money to Halifax they refunded the money straight away as they said they would never be able to prevent someone accessing funds they they need, I would assume your tax bill is a priority. 

If only TSB were that easy to work with.
Spoke today to someone from the "executive complaints dept." He said the dept dealing with this has rejected my letter from stepchange as it says "they have no interest in any funds in the account" and doesn't specify the actual amount in the account. I was told I would need to take a letter in to my branch with the actual amount stated. Stepchange aren't happy with the extra work they are having to do but they've been great and immediately emailed a new letter with the correct amount stated.
I took that letter straight down to the branch, only for them to say they don't need it and are just awaiting the removal of  the restrictions. I told them about my conversation with their complaints dept and what they said I had to do, but I may as well have spoken to the wall. I've left the letter with them but don't expect them to forward it to the relevant department. I've re-emailed their chief exec and their complaints team. They've actually offered £75 compensation but all I want is access to my money.

Let's see what tomorrow brings 

MrFrugalFever

Sounds like you once you get access to your money you should up and leave. They aren’t taking your entire circumstance in to account and could be contributing further to any stress and discomfort you may already be feeling.

i hope it gets resolved swiftly for you.

Mr_Bojangles_3

Finally been allowed access and money now transferred out of there. I did consider doing it £1 at a time to cause them as much hassle as possible   
Account now closed!! Thanks for everyones input