www.iva.co.uk

Hi all

I'm currently at the beginning of starting my iva process. Was advised to switch my bank account as the debt is all with my current bank account (TSB)

I have started the switch process and decided to go with Halifax. However my advisor has now informed me that they will freeze my account when/iva starts

Questions are is this right? Also if it is right and I go with a iva friendly account will I be able to switch over again from the Halifax to the 'new' account as soon as the first switch is complete?

Thanks for any advice

Also on reading on here, many people have gone for a Co op cashminder account. Would I not be able to do the Co op current account instead of that but obviously without any overdraft etc

Cant comment on your query regarding Halifax however we went with a Natwest basic account at the start of our IVA and have been extremely pleased with it. The app is brilliant-simple, clear, does what you need. Very pleased and althoughIVA is now over we arent planning on changing.

Sat Nov 16, 2019 12:57 amabbiesmum2003 wrote:

Cant comment on your query regarding Halifax however we went with a Natwest basic account at the start of our IVA and have been extremely pleased with it. The app is brilliant-simple, clear, does what you need. Very pleased and althoughIVA is now over we arent planning on changing.

Thanks for your reply. On looking on their website would that be the foundation basic account?

Also can you switch the same as you would be able to a current account?

Thanks

If you do go for a cashminder, you will have to do it in a branch or on the phone you can't do it online.

I've never heard of Halifax doing that - they won't know about your IVA.

Some banks have started freezing accounts -- incorrectly in my view -- treating them as though bankruptcy has been declared.
I had an account with Halifax, who were one of my creditors, I opened the cashminder at the co-op and used that during my IVA, leaving the Halifax account 'dormant'. It is still there, 10 years later and still open ( I have used it a bit, but still leave my main banking with the co-op) --- however, things and policies change.
As regards switching, I would suggest you do not use a switching service but do it manually --- more laborious, but you get the opportunity to leave payment authorisations (DDs and SOs) at the old bank, rather than give creditors the chance to grab from the new account on a transferred remit (it shouldn't happen, but it sometimes does).

I switched my DD from HSBC to Barclays and then cancelled it - made no difference though as they still took money out of my old account until the IVA started.

Thanks for your replies guys. A lot clearer now on what I have to do

I was with Halifax when I started my IVA, owed them the lions share, too and was advised to switch - which I did - to Yorkshire bank, who, I had to say, have been great.

I didn't want to close down my Halifax current account, so I left it open and set up a direct debit of £100 per month to go from my Yorkshire to the Halifax. this helped me budget as I wouldn't touch this till I had run out of money.
The Halifax never froze the account, nor did they give me any problems, I have to say they were brilliant. When I went to get a cheque from them 3 years into my IVA for my divorce (the county court wasn't in any modern system, asked for a cheque - who uses those these days??) they said I was a long standing and loyal customer and therefore, as it was a one-off, waived the fee for me that they normally charge.

That was all around 2008 to 20013 (when I asked for the cheque) and I currently still bank with both Yorkshire and Halifax - recommend them both, having said that, it was a long time again, things might have changed.

Halifax are the one who closed my account (child benefit at the time) - £34 offset against a £20k debt!

Halifax was a shocking back when I first started with them, in the late 1990's they fined me £28 because was £0.22p overdrawn. then this forced a debit to fail with resulted in anther fine,
The staff always came across as they were trained to be direct (verging on rude) as they all said the same things, - they were an awful bank, suppose they did get better with me and didn't seem to notice during the IVA period, probably because I was paying the IVA to them and they wanted to keep an eye on me,

They once called me to hand over a credit card and embarrassed me in front of the whole bank!

Hi there when I went into my IVA I was with tsb for one and opened a reward currant account with Halifax and a current account with nationwide before the IVA started and both have been ok since