Hi iwant2befree

Welcome to the forum. There is always the likelihood that banks will freeze accounts no matter what bank it is. There are a couple of accounts which certainly seem less likely than others, Barclays and the Co op Cashminder account.

It is always wise to have a new account t opened up and as mentioned, there is no certainly that they will close your Lloyds account. If anything, the chances are more in favour of it not happening in my experience. I wonder if the best idea is to keep this account, however open up another with one of the other banks just in case.

Mark

Just realised I called it you Lloyds account rather than your TSB account. Old habits...

Mark

I've not heard of any problems in respect of TSB accounts if that is any comfort. I reckon you'll be fine, iwant2befree, though of course couldn't guarantee that.

Hi iwant2befree,

Well done on taking positive steps to deal with your financial difficulties.

In a couple of recent cases that I've been dealing with, the clients have held a bank account with Nationwide. Nationwide have frozen their bank accounts after finding out about their Trust Deed's and requested a letter/fax from us to confirm that we have no objection to the clients operating the account. After we have faxed them the accounts have been reinstated and the clients have been able to continue using the accounts as normal.

It's always a good idea I think to have two bank accounts open and use one as a back up in the event that there are problems with the other account.

In my experience though there shouldn't really be any problems in obtaining and operating a bank account whilst you're in a Trust Deed or even Sequestration.

I think the issue is the bank finding out!

Before the November changes, I know some banks checked the Edinburgh Gazette and cross checked against accounts. I think the ROI makes it a wee bit more difficult to check and the closing of accounts in my experience is no where as bad as people think.

Mark

Hi,

I have a TSB account and have had no problems. I spoke to TSB after I went in to my TD and they were more than happy to keep it open but stressed there would be no O/D or perks etc which were fine with me.

I don't use the account that often it is basically a back up but TSB were more than helpful and happy for me to keep banking with them.

My wife is also with TSB and she uses the account as her main account and same applies to her

Hi Baller1

That's good to hear. There seems to be an assumption that banks will close down most accounts and we'ver certainly witnessed this on the forum, however in my experience this is fairly rare and is more an annoyance for most people rather than a huge issue.

Mark

Hi I had a Lloyds Tsb account with od before signing td...I opened account with rbs not realising it wasn't the basic account even though I asked for just a basic account...what happened was when they found out I had signed a td was they just downgraded my account (with same account number etc) so dd's weren't affected, except for, funnily enough, my td payment!
As regards to Tsb, it's still open, but I can't use it as the od is still there so I can't pay anything to it...however with the change from Lloyds Tsb to Tsb I received a letter from Tsb saying they had handed back my debt back to Lloyds tsb

Thank you all so much for the replies. They do make me feel a bit calmer. I think its all a bit of fear of the unknown at the moment.

I know exactly how you're feeling...as does majority of people on this site. It is scary but as long as you ask all the questions beforehand you will know what to expect. I've been in trust deed for 4 months now and it's been hard, but not impossible. The hardest bit for me is not telling my family who are all very close to me and normally know everything.

FF36 is right. It is only natural to feel afraid as it goes against most people's natural instincts to enter into an insolvency procedure, especially if you have been struggling to keep paying your debts for a long time.
Hopefully the firm you are speaking to will bear this in mind and make sure that you feel comfortable and have an opportunity to ask all of the questions you might have. If you would like a second opinion on anything then please don't hesitate to get in touch again.