linked bank accounts

ozzyfan_2

Just a quick question!

Hope its not a stupid one but could anyone tell me why when you set up a new bank account it should not be linked to your old one?

I was reading pixie1's thread & flaura had kindly put up this list of linked bank accounts


https://www.justabank.co.uk/pdfs/bank-account-guide.pdf

I am now panicking as the new bank account I have set up is linked to my old one. Was advised to set up new bank account by CCCS before my appointment in February as I have an overdraft with the old one. At the moment my old bank is unaware I am having financial problems as I have kept up to date with payments (have a loan with them also) but they will soon know when I send out the letters with the token payments!

Will they be able to freeze the new bank account to pay the overdraft on the old one? If they do this I will lose all my wages, its too late now to have my wages changed :eek:

hope this makes sense as I'm in a bit of a hurry but will be back this afternoon

thanks

ozzyfan_2

just bumping this up - can anyone advise plz

Northernbird_2

If you mean both your bank accounts are owned by the same company, but with different brands, this is important as the bank can basically 'raid' your account to repay any money you owe.

For example, Mint are owned by RBOS (I think!), and so if you owed money on your Mint card and you hadn't paid them anything for a while, not kept up with the payments etc, and the RBOS account was in credit, the bank can take that money to repay the Mint card. They're allowed as stated in the T&Cs. From what I've gathered, no warning is necessary.

I hope that makes sense.

If the case above is true for you, as soon as your wages go into your account, take them out that day. Cancel DDs etc and open another account somewhere else.

poppy52

Are CCCS writing the letters to creditors for you? If so, they will probably wait to send a letter to your bank until you confirm that you have opened a safe bank account and that your wages have been paid into it. That's what Payplan did for me. If it's too late to find a safe account, get down the bank on the day your salary goes in and withdraw it immediately! Make sure all your DDs have been cancelled. Then find a bank that has no links with the bank you owe money to and open a basic bank account, put the cash in and hey presto!

ozzyfan_2

thanks northernbird - I had a feeling that this could happen, didn't know anything about not getting a linked bank account until I read that post.

I will try & get my wages out as soon as I get paid & pay all my bills in cash this month.

trust me to pick a new bank account owned by the same company as my old one :doh:

ozzyfan_2

hi poppy

no they are not writing any letters to my creditors yet, they have said to send a letter myself giving my CCCS case no & a token payment.

this is causing me problems as I don't know what to say in the letters & now I don't know when to send them (payments are due to come out on the 1st Feb & I don't know when is the best time to cancel the DDs either with the old bank now, I could do it on the 31st when I get paid to give me time to get my wages out with the new bank?

my appointment with CCCS isn't until 7th February.

thanks, I am getting really confused now with this added complication!

poppy52

I cancelled most DDs asap but left the ones going to Lloyds (with whom I banked) until the last moment. Don't panic - it takes time for all these creditors to realise you have cancelled the DD and then they write to you asking you to set up another one; all this takes time. They therefore don't notice what is going on until it is too late! Meanwhile write to creditors (I assume you have several, not all connected to your bank) (making sure that letter to your bank isn't sent until you have taken your cash out), just saying that you have recognised the seriousness of your financial situation and because of this are now with CCCS who are working out a DMP for you, give your CCCS number and say you are meanwhile making a token payment of £? to show that you take your responsibilities seriously. Say that CCCS will soon send your I/E details and start making pro rata payments. Pay the token payments of £1 (or whatever) online by internet banking or at a bank - that way you don't have to talk to anyone who might try and persuade you to pay more. Withdraw your salary at cash machines - I did it over a few days because debit card had a max withdrawal amount in a day.

poppy52

And don't panic! It does all get easier. I still worry, and every so often I have a major worry session, but I worry far less than I used to - I am at last beginning to feel in control. My DMP started 3 months ago. This site is wonderful too - you never feel like you are being judged, you get great advice, and the best thing is you don't feel alone. Nobody in the real world knows about my problems - I would probably be on tranquillisers if I hadn't found Payplan and this site!

ozzyfan_2

thanks poppy thats really helpful :A

It will take me 4 days to get my wages out (£250 limit a day) so hopefully I'll be able to do this.

Very glad to know it gets easier, can't wait till the time I feel in control too!

I agree this about this site - I don't know what I would've done without everyones help, was feeling very bad a while ago but am more able to cope now with the support I've had

flaura

don't panic as long as you open a new account with some-one who's not effectively trading under another name.. they won't catch you in four days ?

can you not go in the branch and withdraw more than £250 ? they won't know why your doing it

ozzyfan_2

I think I will give the new bank a ring tomorrow to see if I can withdraw more in the branch on payday, but in the leaflets they sent it says £250 a day.

Thank you flaura for your post on pixie's thread, without it I would not of realised what I'd done :A

I'm going to look for a new bank account tomorrow before my credit rating takes a serious downfall in a few days!