DRO and bank accounts

in IVA & DRO
6 replies 110 views
LittleOwl7LittleOwl7 Forumite
3 Posts
First Post
MoneySaving Newbie
Hello,

I am likely about to go through the process of setting up a DRO. I have spoken to Step Change and have done a lot of research, including reading through many of the posts on this forum, so I'm confident that I'm fairly well informed about what I'm getting into.

One area that I'm still a little concerned about is bank accounts. I have a current account with Lloyds at the moment, however I also have a credit card with Lloyds that will be included in the DRO, so I understand this account will likely be frozen / closed and that I will need to set up a new basic bank account not linked to any of my creditors.

I was just hoping for some advice and recommendations on the best one to go with? I have credit with Lloyds / Nationwide / Virgin Money so I understand they would be out of the equation. Ideally I'd like to be able to set up a basic online saver too, purely as I find this useful for budgeting if I can put away money seperately for things like MOT etc.

Thank you

Replies

  • 1977dave1977dave Forumite
    86 Posts
    10 Posts Name Dropper First Anniversary
    Nationwide and Co op bank are the most DRO friendly banks, but as you have debt with Nationwide, I'd recommend the Co op and their basic account, otherwise Barclays and their basic account

  • rachel6188rachel6188 Forumite
    408 Posts
    Part of the Furniture 100 Posts
    ✭✭
    Step change recommended Barclays to us when we did our DRO x
  • LittleOwl7LittleOwl7 Forumite
    3 Posts
    First Post
    MoneySaving Newbie
    Thank you both for your replies, that's really helpful.

    I am a little confused as I spoke to Step Change last night and they seemed to think I wouldn't need to change my bank account. Everything I've read online seems to suggest the opposite so I'm not sure what the best thing to do is.
  • 1977dave1977dave Forumite
    86 Posts
    10 Posts Name Dropper First Anniversary
    Best thing to do is have a bank account that isn't linked to any organisation that will be a creditor under your DRO

    So for example if Lloyd's will be a creditor then stay away from Halifax as part of the same group 

    I've been discharged from my DRO for 10 months now, I kept my full account with Santander as I didn't owe them any money but opened Nationwide and Barclays as backups

    You could try a basic Santander account if they turn you down for a full account, but my money would still be on co op first then barclays second
  • MalMonroeMalMonroe Forumite
    3K Posts
    Seventh Anniversary 1,000 Posts Name Dropper Photogenic
    ✭✭✭✭
    Hi, when I had my DRO, Stepchange recommended that I change bank accounts and that was something I was very concerned about. They said it was best to switch but that I'd only be able to get a basic account. I applied to Co-op (they recommended three to me, Co-op, Nationwide and Barclays). I was already overdrawn with Barclays and that was part of my DRO so I plumped for Co-op. I was accepted for their basic account without any problems and never had any trouble with them. 

    I'm now with Nationwide - also very good but you already have dealings with them. I can recommend Co-op, definitely.
    My opinions are strictly my own. The forum advises everyone to double-check all information given by any forumite to ensure accuracy. Once commented, I rarely return to a thread, as per this "the moving finger writes and, having writ, moves on" (origin Omar Khayyam). I aspire to the (corny but true) saying - in a world where you can be anything, please be kind.
  • LittleOwl7LittleOwl7 Forumite
    3 Posts
    First Post
    MoneySaving Newbie
    Thanks both, sounds like maybe a co-op account is the best way to go to be on the safe side!
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