Hi ScotsLad.

We think something has happened at Nationwide. When we wrote that page (months rather than years ago) we called them to double check that the account was open to people in protected trust deeds and IVAs. They were very clear that it was.

Since the latter part of last week we have now heard three times that something has changed. We'll be calling them to confirm the situation and will amend the page if required.

For your information, a trust deed is not a form of bankruptcy. Both bankruptcy and trust deeds are forms of insolvency, but they are different.

An IVA also isn't bankruptcy, but it is in many ways similar to a protected trust deed and is sometimes described as being the English version of one.

It therefore seems quite likely that Nationwide don't want customers that are in protected trust deeds, though you could quite honestly answer "no" to the question that you have described.

We'll update the thread when we know more from the Nationwide point of view. Initially however it seems like a poor way for a Building Society that is so keen to say that it is different from banks to behave. Once again... they just look like a bank.

Thanks TDA, as always a great and full answer!

Hi,

We just spoke with them.

Here's what they write on their current account page on their website:

You do need a bank account.
You don't need a bank.

With great customer satisfaction, access to fantastic product offers and with no shareholders to spoil the party, see why a Nationwide current account could be for you.

Sadly this seems to be incorrect for thousands upon thousands of people around the UK that are in a protected trust deed, IVA, or if you're currently bankrupt.

You do need a bank, because Nationwide don't want you.

We'll update our bank account page accordingly.

I have been looking into this in more detail as having just opened account prior to goign into a TD i am now concerend they will close my account.

In the Nationwide T&C's (not a light bit of reading... Trsut me on this) they only make referal to insolvacy through an IVA or being Bankrupt. In the T&C's it also states that you must not withhold or look to decive the organisation at any time. They reserve the rights to close your account without notice if you do.

So on this basis I am still of the thinking that you can open the account saying you are not bankrupt or in an IVA. This is being honest and replying to the question put to you. Arguably it is playing with the rules as you are in a form of insolvancy but not one they have outlined. As such you have a reasoable point to argue they are in breach of their T&C's if they close the account at a later stage.

Alternatly, you can open one of the recognised accounts which work for people in our position.

I did a quick google search arround IVA acceptable accounts and found a large list of BASIC accounts you can open.

Insider knowlege on Basic accounts - Banks hate opening these accounts as they are no value to them. A bank only makes real money from a personal customer when they are in debt or using credit products none of which a basic account gives you. As such they make the process of opening these very hard. Most (if not all) will nto allow you to open these online or on the phone. Branch advisors will haqve had next to no training on opening these accountsd and often refer back to standard accounts T&C and as such tell you you can not open them etc.

So be ready for an up hill strugel to open a basic account. From request to apply to being advised of a decision typicaly takes 5 to 10 days and if accepted the FSA say the account should be open for use within 10 working days... So basicaly it can take upto a month to open an account...!

Ways round in the short or even long term...
My thought on this was to have one of my paretns open an account in their name and to move all my DD's etc to this account. Now please note the account is in there name and they are responcible for it so you have to remember this at all times! My idea was to push all my money through this account and have NO banking myself if this was the only option for me. My parent would in efect give me my pocket money monthly (cash from the account to survive on) less the bill payments out of it. They could give me the card to use at a cashline etc but this is technicaly against the T&C of having a debit card / cash card so you run a risk in using it (although the risk is not as bad as you may think of the bank finding out). I wouldnt put my parents in that position hence the pocket money idea!

In my case however I have opened a Nationwide account and a CoOp account and my wife has done the same prior to going into the TD so we have no real isues.

Final thought is to apply for an account each (not joint). We tried opening a joint account and were rejected. We applied right after for 2 single accounts and had then accepted right away! Credit scoring for two people on a joint account is higher due to the risk of two people running a single account instead of just one. Once you have opned a single account you can normaly fill a form in to have another name aded to the account. Typicaly they are just keyed on and credit checked (especialy if they have an account already). This is what we have done for my nationwide account.

When we talked to Nationwide today they said that the issue was with bankruptcy and IVAs.

We then asked them about protected trust deeds, about which the lady had never heard!

She went back and checked their guidelines and then stated that they would not open an account for someone in a protected trust deed due to the similarity with an IVA.

I think you answered honestly colski, but as you have identified the account does appear to be vulnerable if they started monitoring the public information about trust deeds against their account holders.

Most banks offer an account that is available to someone that is in a trust deed. As we've confirmed today, our biggest building society doesn't. Something stinks about that... I think it's connected to the contradiction between their bleating on about being better than banks while in reality acting the same (or in this case... worse).

omg cant believe that this i happening i just got accepted for nationwide joint account but answered no to the question about IVA and bankrupcy as i am niether just put the acceptance forms in envelope to send back now i dont no what to do again this is a nightmare

TDA... I think the fact she had to go check shows they dont know for sure. Chances are they checked with their supervisor who is just as likley not to know... Instead they made an informed decision given what they did know about Bankrupcy and IVA's. The only way to know 100% is to speak to the legal department (unless this is what you have done already) who will confirm their position as per their T&C's.

Bernie58. I would not be to worried about it as your not in a TD yet so chances of it comming onto their radar should be very slim IMO ... But I would have a fall back account just incase...!

In my case I have a main account with Nationwide but a back up secondary account with CoOp. That way if it all goes wrong with Nationwide (which im 99% sure will not happen) I can quickly arrange DD's etc to be collected from my back up account.

As I have just signed my TD today and given it will be notified in the Gazet ASAP so I guess I will know quick enough if Nationwide will close my account. My thought on it is if the account is ok within 3 months of applying for the TD then it will be ok for the life of the TD. There should not be any reason my account will come to their attention outwith that time as their should be no reason for them to review my credit file as long as I keep my account above board.

I guess we can consider my account the guinea pig account! 🙁

thanks colski its a joint account husband been in trust deed for 1year and 2 months i didnt have to go in trust deed as debt was in husbands name but in all fairness it was probably more me than him think i will just post them anyway and see what happens may not need it as long as lloyds dont freeze the account we have with them

sorry colski when i said i wasn't either i meant IVA or bankrupt but husband is in PTD

Hi bernie58.

We spoke to Lloyds today as well about their basic account (which they call the Cash Account).

They couldn't tell us that they had a blanket rule saying that people in trust deeds couldn't have the account. They just said that a credit check would be done and they'd make a decision from there.

If it's a different type of Lloyds account there may be a little more reason for concern.

Hi TDA thanks for the reply its the silver vantage account we have but will they do a credit check when we have had the account for 19 months or would it just have been when we opened it there is an overdraft facility but we don't have an overdraft on it

The concern expressed about Lloyds that we picked up on another forum was that they were backchecking existing clients and closing accounts.

That was connected to IVAs.

I think any bank would be concerned about offering credit facilities to someone that was currently insolvent if they became aware that they had. It leaves them very open to accusations of irresponsible lending.

i do agree with you tda but if we applied for credit which obviously we wouldn't then they would do a credit check and we would be turned down anyway sorry just really confused at which bank to trust anymore thought i would be ok with nationwide but now doubt that to

I can see why you're concerned bernie58.

It's frustrating from our end that we have been reporting (on our bank account page) that they offered their basic account to people currently in protected trust deeds.

They expressly told us this a little while ago when we put the page together, so it would seem as though they've had an unwelcome change of heart.