New Current Account Query

[Kingeer]

have read that most have setup a new current account with a diferent bank prior to entering an IVA/DMP.

Am looking at a Co-Op account, but thier are two flavours. The normal current account which has :
* 24/7 access to your current account
* cheque book and debit card†
* regular statements
* standing order and Direct Debit facility
* option to arrange overdraft facility

or the Cashminder Account which has :
*24/7 access to your current account
*Electron card accepted at any outlet displaying the Electron symbol
*regular statements
*standing order and Direct Debit facility

would i be allowed either if i took out an IVA or DMP ?

thanks

Rich

[spenmotherhen]

Hi Kingeer welcome to the forum. I think that you will be allowed the Cashminder account as this provides you with the basic facilities but not the option of an overdraft. During an IVA anyway you will not be allowed to have an overdraft.
Hope this helps

[Martin2011]

Hi Rich,

I think the advice is generally that we should all have a basic account. Certainly once you've entered an IVA is seems from other posts that's pretty much all you'd be able to open anyway. However, the advice is usually to open a new account, with a company which is not a creditor, before entering into your IVA. In doing so it seems possible to access a wider variety of accounts, including standard current accounts. However be aware that you cannot have an overdraft facility and should ensure your new bank are clear that you do not require one. Also, I've read elsewhere that there are a couple of banks who routinely check the IVA register against their customer lists and close accounts for anyone they find on there. Can't recall which banks they were off the top of my head but I'm sure someone will be along to remind me.

Good luck,

Martin

[Bindy]

When I took out my IVA I was advised to open the Cashminder account with the Co-op since I was not allowed a chequebook. I have found this account quite good!

Bindy

[wen]

Apply for the main current account. Don't accept an overdraft if offered. If you are declined for whatever reason, then request to open a cashminder account. You get a full Visa Debit card with the main account, and chq book, so these could be very useful, whereas the Visa electron does have one or two limitations in the UK.

Having said that, if you were to go BR, you would be forced onto a Cashminder account, which is still an excellent account though.

[Roisin75]

We are currently with HSBC and so far so good, but have just read another thread on here saying that they have a habit of closing accounts belonging to customers that are in an IVA! we have been with them now since we started in 2006.
My question to this is do the Co-Op have branches? my partner gets paid weekly by cheque and we have to bank it, how do you bank cheques into the Co-Op? i am thinking that if HSBC decide to close our account or will not allow us to upgrade my partners cash card to a debit card we might have to source an alternative bank as finding cash machines in petrol stations (that work) is becoming harder by the day! and is proving to be a nightmare for my partner.
Roisin

[Kingeer]

thanks - as still taking advise on which route, think i will try for Current Account, then if necessary change to cashminder.

Def do not want that overdraft !

Rich

[Skippy]

The Co-op do have branches, but not many. I pay money into my account at the Post Office. I'm not sure how long it takes to clear, but I don't think it was too bad. You can also post cheques to the Co-op yourself.

Yesterday is history, tomorrow is a mystery, today is the present - a gift to make the most of.

View my blog at http://skippy13.blogs.iva.co.uk/

[cr15py]

I use Lloyds TSB, I am not yet in an IVA (8 days till my meeting), and they have given me a visa debit card, cheque book and no overdraft, and I was quite open with them about my circumstances.

[louisa.s]

We like cr15py have a lloyds tsb current account with internet banking, no debit card (our choice) and a chequebook (got before entered into IVA for paying bonus). We also have a joint Halifax Easycash account (Visa Electron, internet banking) and also a co-op cashminder account (visa electron, internet banking) and have no problems with either the setting up or the running of these accounts!

[cr15py]

Internet banking is a godsend to me, it's so much easier to check my account just by logging onto a computer rather than having to get ministatements out of the ATMs all the time.

I have applied for a Co-op cashminder account for ease purposes, where I can put any additional monies to one side (it's too easy to transfer them from my LTSB savings account!) as and when I need to.

[ray_a]

I have a co op cash minder account which is very good.

I also use a cash plus mastercard as well which I found to be useful.

I have also opened a Halifax easy cash account and just started a bread account!

[marsha1]

I opened the main co op account pre iva. I really like it. I enjoy the wider facilties but of course I have made it lain I do not want an overdraft. In fact even when I am at the end of this long road, I do not want an overdraft. I am managing v well without one. Thank goodness the iva route was open to me, it can be a wonderful tool to help people like us with our debt problems.

[Vesta]

I opened a First Direct account(part of HSBC) 6 months ago ready for my IVA! Now I have my IVA (Nov) they are closing my account (despite it being managed very well)!!! First Direct / HSBC are not part of my IVA. They say it is their POLICY not to have IVA customers!
Thank God I found this forum the other night (when I could not sleep with the worry) and I asked what I should do ..... because now I am applying to the very helpful Co-op for a Cashminder account!

[Frankie]

hi to you all. I am now worried because i have opened a bank with abbey national and it went through all ok but i didn't mention anything about sending my papers off for a IVA. They did a credit check and i mention that i might have a default but i only asked for a basic account with no overdraft a cheque book and cash or debitcard and internet banking. hope this is ok. They did ask if i wanted them to transfer my dd over but i said no because i'm sorting out my finances and will be cancelling nearly/most of them.