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Help With Transferring To New Bank Acc Due To DMP?

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Can someone help me with a few things please.

Ive receieved my paperwork from Natwest this morning for my new step account, Ive filled in the forms and they are already in the post box waiting for postie at midday :j My dmp is due to start on the 1st March so I need to act quickly getting my bank account etc sorted.

But.....

I currently have an overdraft of £575 but Im actually overdrawn by £669, the £669 has been put into my DMP so I was told to change my bank account asap and arrange for my wages (paid on the 30th) to be credited to my new account so the over limit will not be paid by my wages - is this the best thing to do or should i just let it be paid off? But there just isnt enough time to change things is there? The natwest didnt supply me with a new bank sort code and account number so I cant instruct my employers to change the details, I could get it sent to my sisters account for one month but that would mean having to change it again with my employer and I really didnt want to raise suspision (SP) at work regards to my problems. Also my sisters account doesnt have a chequ book so it would be hard to get the funds sent to my creditors (gesture payments with my letters) and she cant withdraw loads at once from the cash point.

Also, should I cancel all of my direct debits and standing orders now to save any further charges or should I let Natwest contact my bank, they then send me a list and I tick which ones I want transferring - There are a couple which I want to remain set up, secured loan, bt, water, mobile etc. Should I just cancel those that are cc's etc

Sorry to ramble but I really dont unerstand all this bank stuff. I want to try and reduce the number of nasty letters Im going to start recieving.

Is there an account I can just walk into a branch, set up there and then and get my account details?

Thanks
x
:jDebt Free At Last!:j
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Comments

  • poppy52
    poppy52 Posts: 186 Forumite
    Debt-free and Proud!
    I opened a cashminder account with Co-op - it was very quick although I had to wait a couple of days to get account number I think. I informed work to change banks as soon as I had the details. Meanwhile I cancelled all my direct debits before salary went into old bank (there wasn't time for that month's salary to go into new bank) and withdrew in cash all the remainder which I used to live on. As soon as I had new bank account numbers etc. I paid in my cash and then had money to live on for rest of month. I also phoned and told people like BT that I had cancelled direct debits and wanted to set up new ones. I arranged these to begin a day or 2 after my next salary would go into bank. I paid creditors token payments of £1 while I was waiting for DMP to begin. I also kept notes on my computer of everything I had done so that I wouldn't forget!
  • Hiya Pixie,

    Glad you got the acct sorted as I know from your previous posts that you were worried about it.

    For the DMP to work properly and for you to have the right amount of money to live on, you should leave the overdraft as part of the DMP and don't attempt to pay it off.

    When we did our DMP with CCCS there wasn't enough time to change my OH's pay details so his wages went into the overdrawn acct. I had already told my Debt Advisor at CCCS about this who said that as soon as it was paid in to withdraw it. You need to talk to your DMP people and get their advice as of your overdrawn acct is frozen you may not be able to get your wages out.

    As far as your DD's and standing orders go, can you phone Natwest in a week or so and ask them to give you the details over the phone of your new acct number? That way you can change your DD's etc in good time. Most companies will do this for you over the phone. If they can't do it in time for 1st March, arrange to pay them manually but don't leave any running on your DMP overdrawn acct as you will incur charges. Does that make sense?
    Mortgage-free wannabe!
  • pixie1
    pixie1 Posts: 1,442 Forumite
    Debt-free and Proud!
    Thanks Poppy thats excellent, I will cancel all my d-ds that are cc's now and then take down the details of the others.

    If I went into what will be my new bank on Moday do you think they could speed things up so that my wages wont be swallowed by my overdraft as I have a feeling that as soon as Halifax know my situation that may take the whole £696.
    :jDebt Free At Last!:j
  • I'd contact NatWest ASP they should be able to give you a sort code and account number especially if you say it's to pay my wages in. If there is a problem would you be able to ask your wages dept for a cheque? I've on automatic payment to my bank account but once when I was underpaid I got a cheque from them. You could tell them you're having problems with the account or something.
  • Xbigman
    Xbigman Posts: 3,915 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    First off go to the budgeting and current accounts board and have a look at the threads about this. Is your credit rating good? The step account is credit scored and you could get turned down.

    The timing of cancelling of direct debits is critical. Will any existing ones bounce and incur you bank charges? If so you probably want to cancel them. If you are going on a DMP then any DD's to unsecured debts should be cancelled already. You need to prioritize DD's for mortgage/unsecured debt, council tax and compulsory insurance.
    If you put up more details about all this you will get more detailed advice.
    Regards


    X
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  • ozzyfan_2
    ozzyfan_2 Posts: 599 Forumite
    hi pixie

    I have just checked back on my paperwork & it took 7 days for natwest to reply from sending out the application pack, in this letter they informed me of the account number & sort code. So if you get the account it may be a bit touch & go. Also once you receive the card you have to send a letter back to say you've received it before they send out a pin code so even if you managed to get your wages in in time you may not be able to get hold of them for a few days. So it may be a good idea to make alternative arrangements if poss this month.

    Also does your wages dept need notice of change of bank details? It may be a good idea to check as the deadline for mine was 16th January, after this they would not have been able to change it.

    xx
  • pixie1
    pixie1 Posts: 1,442 Forumite
    Debt-free and Proud!
    Thank you all, as always youre all so helpful :)

    "If there is a problem would you be able to ask your wages dept for a cheque?"

    I hadnt even thought of that, what a great idea. I could ask this on Monday first thing after asking them what the cut off date is for changing my details.

    The only problem with having a cheque is that I wont be able to get at my money until I have an account to put it in and its cleared....jam sandwiches for me for a while i think j/k

    Thanks again
    :jDebt Free At Last!:j
  • Just a thought if your wages can be paid by cheque do you have an old savings account or something you could put it into so it could get cashed? I know this would mean waiting for it to clear but then if the Nat West account takes a while then you can at least get at your money. I'm not too sure how long it takes to set up a passbook account as it's been years since I opened a building society passbook account but I do remember opening one and walking out with a book, you'd need to take ID and an old bill for ID purposes.
  • pixie1
    pixie1 Posts: 1,442 Forumite
    Debt-free and Proud!
    Just a thought if your wages can be paid by cheque do you have an old savings account or something you could put it into so it could get cashed? I know this would mean waiting for it to clear but then if the Nat West account takes a while then you can at least get at your money. I'm not too sure how long it takes to set up a passbook account as it's been years since I opened a building society passbook account but I do remember opening one and walking out with a book, you'd need to take ID and an old bill for ID purposes.


    I dont have one right now but i wouldnt mind setting one up - excellent idea!

    I will post this on the other boards for advice on an account but id anyone does know which bank os bs i can open an account on the spot with please let me know :)

    Thanks
    :jDebt Free At Last!:j
  • I don't think there's likely to be any account you can open on the spot - banks are totally paranoid about money laundering, nowadays, which is why everything takes so long if I understand it correctly.

    I think the suggestion of asking yr employer to pay you by cheque for this month is an excellent one. Remember to do it quickly as they may actually have run the payroll already :( - go first thing on Monday morning!

    In your position I wouldn't worry about 'raising suspicion' with your employers. Can't you just say that you are freezing your bank account due to a dispute with the bank? Not a lie, and you can imply that the bank have screwed up :p In this situation your employer should be helpful about trying to find a way where your salary is not paid into this account.

    I suggest you think through the following question before Monday morning, as an option.... Would it help you if you were not paid AT ALL this month, and then 2 months' salary went into your new account next month? I'm asking you to think this thru now as I wonder if its one thing your employer might suggest :) - might be easier for them to STOP the payment to you than to re-jig it, if they've already run the payroll.
    Ex board guide. Signature now changed (if you know, you know).
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