A New Bank Account??

[beresford]

Hi there

I was absolutely numb with worry and panic regarding my dire financial position and now I that my IVA has been accepted (in Nov 2006) I have never felt so relieved. I have just found this website a few days ago and think it is excellent (I now officially know that I'm not the only one in this situation).

I am currently paying my IVA through my father's bank account (the IVA company I am using said this would be fine). However, for obvious reasons I would like to set up a basic bank account in my own name. I applied to several different banks for a basic bank account during the application stage process of my IVA but with no luck from any of them. Can anyone suggest a bank that would be willing to take on customers who have entered an IVA?

Your comments/suggestions will be much appreciated.

Thanks

[herbek]

I applied for a Natwest Basic Account on-line.

They never asked any questions. I never asked them any.

No problems, got bank account and debit card that can be used worldwide.

[Skippy]

Abbey do a basic bank account

Three down, fifty seven to go until freedom!

[iva experts]

Hi Beresford and Welcome to the Forum!

As well as the others mentioned, Nationwide have a Flex Account where you receive a cash card and online banking facility.

When taking out a new account, make sure to it is clear to the bank that you do not want any credit products or facilities attached to the account.

Hope this information is of use

Regards. IVA Experts

[aguise]

hello everyone. Have been reading this forum for a few months.
Beresford there is an account with gregory pennington (gp banking ) this is a managed account you pay your income into the account and they hold all the money for bills, iva payments etc and any money over is transferred to another account to which you have a cash card.All the money in this account is yours I have found it great I always know how much money I have and they are soon to bring out a debit card which will not allow you to go over and will make it easier than using just cash. You have to pay £8 a month for the account but it is worth it, it also protects you against charges.

[Oliver]

Thanks Aguise

That is really interesting. The principle of the account is great but if someone wanted to avoid paying £8 month you could do exactly the same thing by opening a savings account alongside your main banking account. This would allow you to practice managing your money yourself.


Best Regards
Oliver

Thomas Charles and Co Ltd.
Experts in personal debt solutions.
Read customer feedback at: www.thomascharles.com/about_us.asp

[beresford]

Thank you all for your responses.

I had been turned down by Co-op Bank, Clydesdale and Natwest. I will now try some of the banks as suggested and let you know how I get on.......either way.

Just another little question - I understand that the Gregory Pennington account is via Royal Bank of Scotland. One of my debts under the IVA is with Bank of Scotland. Does anyone know whether or not they are a sister company of each other? Sorry if that seems like a silly question.

Thanks again

[aguise]

The gregory pennington is part of the royal bank of scotland but one of my creditors was aa financial services which I think is also connected to them, they new this as the ac was set up as my iva was started. My iva was approved and I cannot fault the service they have given me. I agree with what Thomas Charles says about managing your own money but being on a tight budget in an iva can be difficult and this makes sure I know what I have to spend and that the bills etc are paid . Hope this helps.

[beresford]

Thanks aguise

I have just got off the phone to gregory pennington and was very happy with them. They were able to confirm over the phone that they would be able to open a bank account for me no probs - they were actually able to confirm my new account number too. I explained that Bank of Scotland is one of my creditors under my IVA and they said this would not affect there decision to open a new bank account for me.

Thanks again everyone for your comments

[aguise]

Glad to hear Beresford I have found them to be helpful and friendly and I dont feel uncomfortable when talking to them as they know my sitaution. Hope all goes well.

[scooby]

Hi I currently have a bank account with Nationwide
they were not a creditor I have no overdraft facility with this account however it has a Visa Debit Card with it and a cheque book am I still allowed this account and cheque book if I do not go overdrawn or are these facilities associated with my account classed as a credit facility?

Scooby

[Skippy]

Hi Scooby, I am in the same situation as you - I already had a Classic Plus (or something like that) account with a debit card and cheque book. I was told that I could keep the account as long as I had no credit - a debit card and cheque book are ok as you are not having credit.

Three down, fifty seven to go until freedom!

[DebtDummy]

Skippy 13, my husband and I were told he could keep the debit card and cheque book by our IP, but no credit facility. My account is with Natwest STEP which I opened via telephone.

All I have left is my humour.

[Skippy]

I just keep an eye on my account now to make sure Lloyds don't suddenly put an overdraft on it!

Three down, fifty seven to go until freedom!

[jamesfalla]

Hi everyone

When you are in an IVA it is absolutely fine to have a current account with a cheque book and debt card.

Quite often, even if you have to open a new account and you do this early anough (ie before your credit rating is effected), you will be offered a normal current account with cheque book and debit card facilities.

When in an IVA, the only thing that you should not have is a line of credit such as an overdraft facility or credit card as using these facilities may mean you breach the terms of the IVA. As such, even if your new bank account offers you these, you should decline them.

James Falla

Expert in IVA, Bankruptcy and informal Debt Management solutions, with extensive experience of solving personal debt problems over the past 10 years. I am regularly featured on BBC News, Finance Programs and Radio.

Visit my blog at: http://jamesfalla.blogs.iva.co.uk