Hi teejenny

How disappointing for you, and blooming inconvenient. The trouble is that any bank has the right to refuse an account, or withdraw an overdraft at any time. Most banks will not allow you an ovdedraft whilst you are in a Trust Deed, as that creares post trust deed debt. The bank have the right to recover this money, and it cannot be added to yout trust deed as it arose after the date you signed teh Trust Deed. Banks often ask the Trustee for a letter, it is to cover themselves really. If your Trustee phones the bank and gets a fax number for the correct department, the bank should release the funds to you immediately on receipt of the fax. I would suggest you get this done first thing in the morning, as the bank may not be open at the weekend. Which bank is it?
On the point about your rent arrears, i have never heard that arguement! Rent Arrears are included in Trust Deeds and Sequestrations all the time.

Hi Teejenny

On the issue of your rent arrears i believe every housing association is different but i remember reading somewhere if you had arrears before the trust deed was protected they wont persue you and would seek a claim to your trustee for this, however anything after u signed your trust deed they will persue as normal. The trust deed experts will be able to confirm this as i could be wrong but i do remember reading it along those lines.
There is also a topic here in the forum in regards to the same subject let me find it for you.
http://www.trust-deed.co.uk/forum/topic.asp?TOPIC_ID=1562

As shona has said you are not allowed to have an overdraft whilst in a trust deed, considering you had informed the bank of your situation i would have assumed they would have withdrawn your overdraft facility knowing this so i believe that is a failing on there own part to have not done this originally. It is not uncommon for them to freeze an account or some banks do close this as they believe it a risk to them and to stop you going into debt with them. I would suggest you try opening a new bank account elsewhere and contact your trustee to contact your bank as shona has said so you can have the funds released you are intitle too.

Yes, new bank account is a must. I would recommend Barclays, and they certainly helped Reiddy1982.

Hi Reidy1982 and teejenny.

I think you picked a good link there regarding rent arrears Reidy1982. The key point in that thread, from Kevin, is:

"Technically, the landlord is likely to be within their rights to commence eviction proceedings, but most social landlords don't seem to do this. Best to check with them first before assuming everything is ok though!"

Having said that, Kevin and Shona seem to be indicating that many landlords (or social landlords at least), are prepared to enter pre trust deed arrears into a trust deed. I'm not sure this should be taken for granted though and teejenny might want to proceed carefully.

A trust deed doesn't, in itself, prevent you from having an overdraft. I think a bank would however be uncomfortable if they found that someone in a trust deed was using an overdraft.

Hopelly teejenny's Trustee will spring into action tomorrow to help to get the funds unfrozen.

Yes barclays is defentley the bank i would recommend. Call barclays or go into a branch and make a appointment to see a account manager about opening a cash card account. Be totally truthfull with them and explain what has happened. They will make you a appointment to go in. All you have to do is take some sort of id such as driving licence or passport. They will take you through the process and open the account for you and you should leave with account number and sort code in hand. The good thing about the cash card account is you will be able to run the account just like any other as it comes with a visa debit card and run's direct debits and so on, You are even given the option for internet banking with them. You just will not have the option for a overdraft as this is not included.

Hi,
Thanks for all the advice !
Spent most of yesterday on the phone. Apparently the bank are perfectly allowed to change their terms and conditions to not offer facilities to people in TD. As my debt (£167) is now owed after it became protected theres nt alot I can do. I can go into a private arrangement to settle the debt or just let it go to collections. As I have a default /CCJ against me for the next 5/6 years (TD only protected in november 2011) they should both fall off my credit report at about the same time anyway I might just chose the latter? any thoughts?
Also with my rent, the city council say it is not a credit agreement and therefor I should pay it (arrears were all before I signed). I said surely if I owe you money then you are my creditor. They are happy to let me pay it back in tiny amounts though. My IP has said she will contact them again though and get back to me.

Hi teejenny.

Re the overdraft, for a sum that size it might be useful to set up a modest repayment plan with them? Otherwise you may end up with a fair bit of hassle.