There's been a lot of chatter on other debt forums that Cashminder account users in an IVA (similar to a protected trust deed elsewhere in the UK) have received a letter regarding a change in their terms and conditions.
Apparently this says that being in an IVA will be a breach of the terms and conditions in the future. There's an obvious possibility that this could apply to trust deeds as well.
I have also read that existing Co-op Cashminder users in an IVA have been reassured that their accounts will not be closed by Co-op customer service teams so please don't be too alarmed at this stage.
I know we have plenty of members that use this account. Have any of you received a letter like this? If you have could you tell us what it says?
We should say that we've just called the bank and they told us that Cashminder remains available unless you're bankrupt. This seems at odds with a lot of comment elsewhere though.
Can anyone help to shed some light on this for us?
I've not heard anything on this.
It still surprises me at the approach by banks. You have an account with no overdraft etc and therefore the account is no risk to the bank itself.
Mark
Mark is not posting regularly in the Trust-deed.co.uk forum.
I have a Co-op Cashminder but haven't received a letter like that. Although from the few times I've had to speak to customer services it was clear they have a certain attitude towards Cashminder customers. I was given a lecture in a very demeaning tone by one of their staff after I called to say that my card had become physically stuck in a cash machine. I had previously called about a replacement after the chip stopped working in one card. Apparently they won't always replace cards if the expiry date hasn't been reached and I should be more careful!!??
I wonder what the bank's position would be with DAS. I suppose there is the perception that you are paying back in full when in fact you are paying the debts excluding interest etc.
I have read a few T & C's which generalise where 'entering an arrangement with creditors' is a breach. I suppose it will depend on the wording of the particular bank.
Mark
Mark is not posting regularly in the Trust-deed.co.uk forum.
The feedback coming from other forums is now that perhaps the Cashminder hasn't been withdrawn for people using trust deeds or IVAs.
Seems as though the letters sent out indicated that the rule change applied to all current accounts... but that Co-op don't view the Cashminder as being one of their regular current accounts to which this applies.
All very confusing and not a little unclear.
I am a bit concerned about the change in rules and raised it in an earlier thread.
Just before I entered into my trust Deed in 2009, opened a current account with ยฃ200 overdraft facility and a linked savings account. It has been operated without any problems since then.
I paid my final payment in August 2012 but I am still waiting for discharge. The trustee insists he will not and should not release me until the final creditor has responded with regard to PPI. The creditor (Marks and Spencer) seems to be simply ignoring all communications. There was no PPI on the other creditors and I did not ask for it on the last one. It would be PPI on ยฃ1500 for one year's payments. I am losing the will to live trying to get Form 5 - and I know he has the opportunity to release me since it was taken out after 2008.
Anyway, the point of saying this is I am concerned that there will be an audit of bank accounts and they will see I have a Trust Deed still active and they will close my account. I wrote to the trustee 2 weeks ago explaining this and asking him to issue the Form 5. I offered to sign a legal document or affidavit that if I am sent any money I will return it to them. Still no reply and I am annoyed and upset at the situation now. It is like banging my head off a brick wall.
I do not know the scope of the new Co-op rule and if it could apply to me even at this stage of the Trust Deed. If I remember correctly, the new rule comes into effect in September 2013. I do not know if it refers to bank accounts opened after that date, or if it applies to any accounts still with open Trust Deeds. I fear that I could end up having my account closed, with the myriad of problem that would come with that, and yet the Trust Deed is completely paid.
[:(]
On a brighter note, isn't this weather a fantastic change? [8D]
Hello Firewalker.
This all sounds very frustrating.
The safest thing to do would be to contact the Co-op Bank and convert to a Cashminder account. If you don't you'll be exposed to account closure.
Thanks for your response TDA. It seems to very unfair and illogical in the circumstances, and I don't want to change if I don't need to.
So, just to update you on this saga:
I contacted the AIB to ask for some guidance on having my Trust Deed closed since it could affect my account with the bank. At first they said they could not give me advice; however, when I explained my circumstances (delayed release and potentially facing bank account closure as a result) they said they were very interested in that and asked me to put it in writing to them.
They also advised me to write to ICAS explaining the same in the hope that they could clarify the matter with my Trustee. Hmm - not sure I really want to do that right now.
I called the Co-op Bank for general guidance on how they will implement the rule notified. They were reluctant to answer any information without giving my account, which I do not want to do at this point and raise my head above the parapet perhaps unnecessarily.
I asked them the following questions:
1. Would the rule be applied from 1 September to new situations only. Would it be applied to any currently non closed Trust Deeds. Or would it apply to anyone ever opening an account and then taking out a Trust Deed? how far back would they go?
2. Would they take into account if a customer had completed the trust deed satisfactorily but it was only open until the PPI was resolved and the Trustee was willing to write a letter to that effect.
3. Would they take into account a customer who had operated a sound bank account for 4 years and had completed the Trust Deed although awaiting a form 5. With the Trustee confirmation.
4. Would they notify customers of their intentions, or simply close my account with no option to switch to a Cashminder? Have they set criteria for distinguishing customers and how they are operating their account or would it be unilateral closure.
5. Would a customer have the right of appeal to their decision?
6. Would a customer have the right of appeal to the Banking Ombudsman?
No reply to any of those unless I give them my account details. I spoke with Customer Services who referred to another. And I spoke to Debt management and she referred to another.
PS: Any idea how favourably the Nationwide would be to opening a current cheque account for me. I have had mortgage with them since 2008 with no defaults. Just wondering if that might be another option.
Hi Firewalker.
These seem like questions that could easily be answered by a bank without the caller needing to identify themselves. Not great service.
The Nationwide, which likes to present itself as a mutual society run for the benefit of its members (unlike a bank is the obvious implication), chooses to offer no bank accounts to people that are in a trust deed. None whatsoever.
HI TDA
Thanks for quick response. That's what I thought about Co-op service and attitude. They were desperate to get my account details.
Thanks for information about Nationwide. Again, I have my mortgage with them and did not want to 'raise my head' unnecessarily.
I am now onto the PPI Ombudsman to find out what options I/we have if the company continues to refuse to respond to the PPI question.
It may be of no help but doing something is better than doing nothing methinks.
What about once you are out of a TD? Do banks still treat you as if you are bankrupt and if so, how long for?
Hi Tiredmama007.
Every bank will have their own criteria about who they will accept for their various different products and services.
You'll only find out the answer for sure by applying. For sure, soon after a trust deed banks may be wary about offering credit facilities.
Interestingly, The Nationwide are one of the few lenders that will offer a mortgage to someone who has been discharged from a TD minimum 1 year
That's good to know about the mortgage as this is one for the first areas we want to address when out of our TD's.
We have Nationwide full accounts (no overdraft / lending facilities) which are our main accounts. We opened them just prior to entering the TD while our credit records were default free etc but showing pressure on our finances. So far (fingers, toes and more crossed) nothing has been highlighted by them regarding the TD. This IMO points to them perhaps (and this is just an assumption) not checking / monitoring for entries into the estates gazette etc. I assume that unless I apply for some sort of account change (second name added, lending facilities added, second account opened etc) then they will have no need to apply for a credit check against us keeping the TD below their radar. That said we both have a second emergency account open with other providers which we can fall back to should anything change in Nationwide's process.
Half way already!
Hopefully no problem develops colski.
It's very sensible that you have a back-up plan in case. Some lenders and banks monitor the public registers of insolvency so it's not necessarily just via credit checking that your trust deed might come to light.