Hi gresgow

Protection 2 minutes ago for you if I'm not mistaken!

I'm sure the experts will weigh in here but staying with Lloyds is not a risk I'd take myself in those circumstances. Getting a TD is supposed to get rid of sleepless nights and I think that situation would give me a few more of those.

Let us know how your protection went.

Cheers,

DebtFreeWannabee

My wife setup a bank account with Lloyds TSB when she entered a TD back in 2006 and she had no issues. You might want to double check the T&C's for the account in question, in case there is a clause that allows the bank to close the account if you enter a 'voluntary arrangement' with your creditors or are declared insolvent. Clydesdale Bank for example have that clause in their Terms and Conditions.

I've recently had major issues with my previous Bank provider - Natwest, who froze my STEP account (basic bank account) because my TD became protected. Once my trustee confirmed with Natwest that there was no issue with me having the account and funds within it, Natwest released the funds (took them eight days to unfreeze the account) and then requested I close the account. This is despite having no debt with the Natwest. It wasn't fun having no access to money for two weeks and finding that all my direct debits and standing orders were cancelled.

I've opened a basic bank account with Barclays who are aware of the Protected Trust Deed and were happy for me to have an account with them.

quote:

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Originally posted by DebtFreeWannabee

Hi gresgow

Protection 2 minutes ago for you if I'm not mistaken!

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Not wishing to pee on your parade, My Trustee advised me that that my creditors had up to midnight on the last day to object my Trust Deed to being Protected....... Ultimately it never mattered as I had no objectors anyway, but keep yer fingers crossed to 1 second past midnight tomorrow......

Hope it all goes ok.......

Technically, if the trust deed was advertised on Friday 10th December then the closing time for objections is midnight at the end of Thursday 13th January, according to the Accountant in Bankruptcy's Notes for Guidance. However, it seems that some insolvency practitioners aren't aware of this, or choose to include the Friday too.

Hi Gresgow
My understanding is that banks can set off until the date the TD becomes protected but if they do this the situation must revert to the state of play at the date of signing if the TD becomes protected, although your IP might need to persuade the creditor to move funds back. The safest option for new trust-deeders would surely be a new account in a bank with no links to any creditor. It'd be interesting to know how often banks exercise their right to set off and I did wonder what would happen if the new bank was bought out by one with links to a creditor in the intervening period. Not sure if the likes of TIX work up 'til midnight!

Afer reading the terms and conditions of Lloyds TSB, I have contacted my payroll section and asked them to change my bank details to my Co-Operative account as I do not want to take the chance that something may happen when my wages are paid in.

When looking at Lloyds account terms and conditions the follwing is what I found:

17.2 We can use our set-off right, where you have accounts which are only in your name as well as joint accounts you hold
with another person (X) as shown below:
Money in account for: Set off

17.3 In addition, we can in the same way (unless prevented by insolvency law) use money you have in any of your accounts
with us to reduce or repay any money you owe to another company with the Lloyds TSB name, Scottish Widows plc or one
of their associated companies.

With regard to my TD becoming protected, I am not counting my chickens just yert as it would be just like one of my creditors to send something in at 5PM today. I will be contacting my IP on Monday morning to find out for sure and will keep everyone updated.

Thanks

Hi gresgow.

I think you're doing the right thing using an account that is unconnected with any of your creditors. Better safe than sorry.

Fingers crossed regarding your trust deed becoming protected.

Really paranoid about this - saw a previous post which said that the Co-Operative had closed a member's account when they had entered into a trust deed.

Phoned the Co-Operative just now, the first person I spoke to had no idea what I was speaking about (what chance do you have) phoned back again and spoke to a different person who put me on hold for a few minutes and then came back and advised me that there should be no problems using the account while in a trust deed.

Only problem I have now is changing over direct debits/standing orders.

I was lucky that when I changed bank my new bank organised everything for me.... All my Direct Debits/Standing Orders etc.... They also contacted my payroll to change the account.........

I mIght be wrong gresgow, but I think in the thread you mention it turned out that the writer did not have the basic Cashminder account and was subsequently allowed to downgrade to a Cashminder account and carry on banking with Co-op.

That's great TDA as it is the Cashminder account that I have. As I said in a previous post I do prefer many aspects of Lloyds internet banking service compared to the Co-Operative, but it is a small price for the sake of piece of mind.