Welcome to the trust deed forum herewego.

Signing a trust deed is a big step and many of our members have written about their nervousness or concerns, especially relating to the five week wait until protection.

Was the account that you opened one of their basic accounts?

Hi herewego

The best way to handle this is to get an account with terms and conditions that does not ban people with trust deeds. Then you've no need to worry about it.

If the Clydesdale do shut your account it's simply that the account's T&C's don't allow it - it's not that they have a personal vendetta against you!

Assuming your account falls into the "no TD's" category, it's best not hope that they simply don't find out and get a suitable account from the get-go. The Clydesdale's basic account is suitable.

There's loads of stuff on this forum about other suitable providers too.

Cheers,

DFW

Thank you for your replies!

I opened a current account plus (the next one up from the basic) but have not requested a cheque book or overdraft. Just wondered if I should come clean and ask to change to the basic becasue of the TD, say nothing and wait, or look for another bank now.

I am not too concerned about changing bank accounts again. I'm more concerned about changing the details at work again. It's a small office and there's not much room for privacy! I have not told anyone my situation and looking for a good excuse as to why I will be chaning my account number again!

Most of my debt is with RBS, loan, overdraft and credit card. Can you tell me if RBS tend to accept TDs? Are there other banks connected to RBS that I should not open an account with?

Thanks again!

Hi herewego.

On the principle of safety-first, I would suggest downgrading to the basic account.

The other main bank within the RBS Group is NatWest, but I think they operate from a different banking licence and therefore understand that "set-off" cannot happen. Still probably better to be safe and sure though.

RBS aren't known for being anti trust deed at all. Through their representatives they will assess your case and circumstances fairly.

Hi herewego

I just wanted to back up what TDA said.

There are stories on the forum from people who woke up one morning to find their bank account frozen. So it's not just a case of waiting for them to contact you to invite you to close or change it.

Better safe than sorry!

Cheers,

DFW

Thanks for the advice.

I shall downgrade and let you know how I get on. It may be helpful to others.

Thanks again for your help. I have found the forum great for all my many queries!

Please do let us know how everything works out herewego.

As you can see from the numbers of people reading each thread here, there are many more readers of this forum than posters.

The site advice team speak with many people who tell us that they have found reading about other people's experiences invaluable while they weigh up their own plans and decisions.

i was with the bank of scotland and was told my my practioner that it would be ok, woke two days after i signed and account had been frozen, i couldn't get any money out till the practioner told the bank it was ok to release my money. took ages and we had not a penny to live on for 4 weeks!

As floblack describes very well, making sure the right type of bank account is in place at the start of a trust deed is incredibly important as it can cause huge problems and disruption otherwise.

I'm another who found their 'basic' bank account frozen, which happened on Christmas Eve, about 9 days after my Trust Deed became protected. It took two weeks to regain access to my money and a few more weeks to sort out all the direct debits and standing orders the bank cancelled.

I thought I would be ok, as my Natwest STEP bank account had been setup when I entered a debt management plan several years ago, so this bank was not connected to any of my creditors. The Natwest eventually admitted they were at fault as the account should not have been frozen, but I moved banks to be on the safe side. It seems that the Bank systems may react on the notice of either someone entering a Trust Deed or when it becomes Protected, regardless if they are part of the Trust Deed.

I suggest you actually speak to someone at your branch to ensure that your account won't be frozen/closed. Clydesdale does have a clause in their T&C's (see section 4.9.3.2) about customers who have entered a 'voluntary arrangement' (IVA/Trust Deed) with their creditors.