Starting out on DMP advice needed

gingerpuss

I am just setting up a DMP through CCCS and gathering together all the information about my creditors to send to them. My current account is with RBS and that is where my mortgage is through. I have no problems with the account, never missed a mortgage payment etc. CCCS advised me that if my bank were one of the creditors I was putting through the DMP I would possibly need to change accounts to stop them taking money directly out my account. What I have just noticed is that one of the credit cards I am putting through DMP is my Tesco Visa which is run by RBS. Would this mean RBS could steal money out my account and would I need to change banks? A bit concerned as I currently have a working overdraft with RBS of £1,000 and if I didn't get approved for this with another bank I'd be stuck!

lxpeanut

They could take money out of your account. One question why is your overdraft not included in the DMP? If you need the full limit each month its a debt like any other and probably should be included. The best thing is to get an account without an overdraft with another bank and include your existing overdraft in your dmp.

fermi

Have a read through Martin's new article on this.

Link: Setting Off Rules: DON'T bank where you’ve got debts

gingerpuss

Guys, many thanks for your help. I must admit it had never crossed my mind to put my overdraft through DMP! I have now changed banks and the only problem I now foresee is that my RBS loan will not let it be repaid through another bank - it must come off my RBS current account so I can't close the account. If I put my overdraft through DMP then when I do a standing order to put my money over to repay the loan on the date due each month, the bank could take this money to repay the overdraft.