I get home last night to find a letter from First Direct telling me they were closing my account and requesting me to send back my debit card and any un-used cheques as they had received notification of my IVA proposal. My IVA has not been accepted yet my meeting is on Friday 18th.
I have banked with them for 14 years and have never missed a payment on my loan or gone over my agreed overdraft limit. I had always been impressed with their service but am rather taken aback by the speed with which they have dropped me as a customer!
Luckily I have opened a Co-op Cashminder account so my salary will be paid in there this month.
It is standard for them to close the account regardless of whether your IVA is accepted. By proposing an IVA you are admitting that you are insolvent and have defaulted on all your liabilities.
At least you do have a new account so will not be affected.
