www.iva.co.uk

hi all,
we are currently getting all paperwork together to start the iva process.we have had to set up a new bank account.we have opted for hsbc and transfered all essention direct debits, wages etc. im now getting worried that our creditors may have some connection to the bank and beable to take money from it. we owe to natwest,barclays,santander and halifax.Iv tried to look online but cant find any information. Any advise would be greatly appreciated. thankyou!!

Avoid HSBC as they tend to discriminate against those in IVAs and demand they move their business elsewhere. I would suggest a CoOp Cashminder account and this can be opened quickly over the phone.

thanks for the quick reply.not good then, as iv already set everything up and my wages will have to be paid into this account would we beable to set up a co op account when the iva is set up or will they likely refuse us? how would the bank know i was in an iva,would it be thru the direct debit? could i transfer the funds to another account and have the iva taken from that? sorry in advance for so many questions.

vimtolil - if the bank credit check or search the insolvency register your IVA will be mentioned on there. Yorkshire building society has a saver account which allows DD and S/O to be taken from it.
It is often suggested to set up your new account before the start of the IVA as it gives more options on the types of accounts on offer - also you may be lucky for them to offer a "full account" - as you can truthfully ignore the IVA question

Hello vimtolil and welcome to the forum

The Co op cashminder is a good option and you will beable to open this account prior to entering your IVA or after you IVA has been accepted.

HSBC have been known to close accounts when they find out a customer is in an IVA or an undischarged bankrupt. They can find out through credit checking or the insolvency register at any time.

As michael suggests you may prefer to open another account and transfer you wages and direct debits.

Thankyou all so much,i will open a co op account today.

Avoid First Direct as well - they are as bad as HSBC.

I think the Coop would be a good option for you. I appreciate it's a hassle to change it again but best to be safe than sorry. If HSBC do ask you to move accounts which is likely then you'll have it to do anyway. Give Co-op a ring be worth it in my opinion.

You will be fine with the CoOp and best of luck with the IVA.

As others have said HSBC and First Direct are well known for their automatic closure of accounts for those people who enter IVA or Bankruptcy.

We were in the position at the outset of our IVA and thought we had it all sorted, within three weeks we were sent a letter saying our account would close automatically in 14 days times.

Smile Current Account (internet bank) - part of the Co-Op were brilliant and allowed us to open an account with them with a Visa debit card and a cheque book.

Halifax also allowed us to open a easyCash account with a Electron card.

Good luck.

oppps ive b***** gone with HSBC as well,although i credit checks were done before i signed up for the iva,can they really make me move now?

Yes they can - HSBC are well known for closing down accounts for people in an IVA or bankrupt as are First direct.

Co-op come highly recommended.

Hi,
HSBC were actually recommended to me by my IVA company - i set up my new basic account before my IVA began, and 5 1/2 years later I've had absolutely no problems with them - maybe I've just been lucky?! I am, however, now thinking of changing accounts as I desperately need a debit card, which is not offered with HSBC's basic account. I'm in 2 minds as to whether to go with the coop or wait until November when my credit file will be clear and my IVA will have dropped off and just try to upgrade with HSBC.
Best of luck with whatever option you take, but I can certainly say I have had no problems with HSBC and have always found them more than helpful!