Hi,

I am after a bit of advice and also to warn others about a potential pit fall woth protected trust deeds/IVA.

I have been with First Direct for a little over a year now. I opened an account just before I signed my trust deed which has become protected. However, I phoned the bank today to check my balance and I happened to mention that I did not want to increase the standard overdraft on the account as I was in a protected trust deed. Within 10 minutes my account was closed as I was told that it is now their policy once you sign an IVA or trust deed then your account must close with the bank. I explained my circumstances including that I did not enter First Direct into the trust deed agreement but this made no difference. I asked to speak to the manager and I was told their would be no point as they will just tell me the same. I have had a great relationship with this bank until now and my account has always been managed well.

Two hours later I received a telephone call from First Direct confirming my account is now closed. My salary is due next week and I don't have an account to pay this into so I need to find a bank quick. First Direct said they will only relase my salary next week once I phone them and they send a memo to the branch stating that I can withdraw my money.

I phoned my Trustee who has never heard of this before. Are banks allowed to do this? Just cancell your account on the spot because I have a trust deed even though I do not owe them any money?