Closing a bank account when overdrawn? Advice please

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  • sarriep
    sarriep Posts: 321
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    Hi monkey, just ensure they don't stop your overdraft facility (as I think they are entitled to do???). In effect when your wages are paid in you may not be able to withdraw anything as they will use these to pay off the overdraft. I'm sure I read that happened to someone else on here. Can you not get your wages paid into somewhere else? I called my wages dept and they did it straight away over the phone had to confirm by fax then. You just need your sort code and bank account number.

    I'd hate you to not be able to get your money!
    Sx
    :eek: LBM August 2008:eek:
    Total debt £51914.74 Paid off so far £47,611 DMP started November 08 Current debt £4,303.73
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  • sarriep wrote: »
    Hi monkey, just ensure they don't stop your overdraft facility (as I think they are entitled to do???). In effect when your wages are paid in you may not be able to withdraw anything as they will use these to pay off the overdraft. I'm sure I read that happened to someone else on here. Can you not get your wages paid into somewhere else? I called my wages dept and they did it straight away over the phone had to confirm by fax then. You just need your sort code and bank account number.

    I'd hate you to not be able to get your money!
    Sx

    Thanks,
    There shouldn't be a problem as far as I know my current bank account is not aware of the gravity of my financial position, unless the loan and credit card departments have warned them. I think its going to be all a matter of timing! Cant wait to get my new account details and get the hell out of my old bank. Feel bad but loyalty doesn't seem to pay!
  • Jvic28
    Jvic28 Posts: 1,596 Forumite
    skylight wrote: »
    But the OP is not intending to use that account again.

    In your case, you were still using the account, money going in and out and therefore they continued to take it as they are entitled to.

    I was in exactly the same position. I was setting up a DMP and this was my last pay going into the account.

    I think the OP has got the right idea now anyway and I hope it all worked out Ok.

    x
    DMP Mutual Support Thread Member No 190
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  • I had a similar problem with the Halifax recentley. I had a £1000 overdraft and it was nearing its final months and knew it wasnt going to be renewed, I had not got the money to pay it all off, so I decided to let it go over its limit. I got a letter saying I had been charged, but after a month or so it was passed onto the collections Dept for formal demamd of payment. I basically said I didnt have the money and could not pay anything to the overdraft, they were in fact very understanding. I entered into a payment arrangement to pay £20 a month to it, on the understanding that I could not use my account (didnt bother me as I had a good account at HSBC) so I paid the £20 for last 3 months. I recieved a letter from them last week, in fact it was wescott Credit services so im assuming they have sold my debt on. I will offer them £300 to close the debt. Saving me £700, or I will continue to pay £20 and bank with HSBC.
  • Surely it can't be right that if you cancel a direct debit that a company can continue to collect it??

    If that is the case what is the point of moving bank accounts as presumably they will just keep taking applying for the DD from the old bank?

    is it really true that they can keep taking it until the bank bounces it for lack of funds?

    I always thought that the only reason to get another account was in the case where you owed your own bank money, say on an overdraft, so that if your wages weren't paid in they couldn't be swalloed up by the overdraft.
    £1000 in 100 days £175.08/£1000:T
  • MrsTinks
    MrsTinks Posts: 15,241
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    Surely it can't be right that if you cancel a direct debit that a company can continue to collect it??

    If that is the case what is the point of moving bank accounts as presumably they will just keep taking applying for the DD from the old bank?

    is it really true that they can keep taking it until the bank bounces it for lack of funds?

    I always thought that the only reason to get another account was in the case where you owed your own bank money, say on an overdraft, so that if your wages weren't paid in they couldn't be swalloed up by the overdraft.

    Yes they can do this. They are legally allowed to do this too...

    That is why you need to move the banking to a bank you do NOT owe any money to. Yes they can carry on taking payments until your OD limit is met (and in cases exceeded) but you can reclaim the charges (eventually) and in the mean time YOU have control of your money. Otherwise they would leave you nothing to live on or pay other creditors. That would make them a prefered creditor and void any DMP etc.
    DFW Nerd #025
    DFW no more! Officially debt free 2017 - now joining the MFW's! :)

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  • peachyprice
    peachyprice Posts: 22,346
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    Hi Monkey,
    One thing you can do to protect yourself from unscrupulous creditors in the future is, wherever possible, set up standing orders, rather than direct debits. That way you are in control of how much you are paying, rather than creditors being in charge of how much they take from your account. Your creditors won't like it, but at the end of the day you are paying them, so there's diddly squat they can do about it.
    Accept your past without regret, handle your present with confidence and face your future without fear
  • im having to switch bank accounts as doing dmp and my overdraft is currently 950 with halifax,has anyone had dealings arranging monthly payments to pay an overdraft off and what are they likely to accpet from me as a lowest payments as i cant afford to offer much on my dmp about 15 a motnh i think it worked out?
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