Advice wanted please

SusanK_3

My daughter is entering into a dmp with a Debt Consolidation company for a period of 6 years at an affordable monthly sum. She has been advised to change banks (where most of her debt is) as the company won't/can't deal with a creditor she is still using. She has tried opening a new bank account with a couple of the high street banks, telling them that her salary will be paid in each month but because she will be paying a monthly amount to the dmp people, the banks are wary of taking her on as she is shown to have bad credit.

Anyone else come up against this problem and if so, what have you been able to do.

Many thanks

Tixy

If your daughter is going to do her DMP with a fee charging company stop her immediatley and redirect her to one of the free organisations (such as CCCS or Payplan).

Other organisations take a percentage fee from her monthly amount for themselves and/or an upfront fee. This is money that could go against her debts instead.

She needs to specifically request a new basic bank account with no overdraft. See this link for all those on the market, choose one of these and she should get it no problem. Providing she is on the electoroal roll and they can verify her identity she will be able to get a basic account http://www.moneymadeclear.fsa.gov.uk/pdfs/bank_accounts.pdf

SusanK_3

Many thanks for this sound advice, I will let my daughter know. Only prob might be electoral register as she is no longer on ours as she lives in rented accommodation in London but she can provide other ID. Thanks.

GeorgeUK

For the banks to open a basic account - they should not be looking at her credit score as she si not requesting credit.

Get her to look at her credit file (free at experian if you cancel within 30 days) and make sure that there aren't a whole load of credit checks against her. More than 3 credit checks in a 6 month period can affect your credit score.

If she did not give written agreement that they could perform a credit check, make sure that any are removed. They require permission before making a credit check and a basic account should not require one. You may find that the 'helpful' staff have tried to give her another type of account with an overdraft which may be why she was turned down. That's what happens when bank staff need to meet certain targets.

SusanK_3

Thanks for the extra advice and I will pass this on re the credit checks. It seems that NatWest's Step Account have approved her in principle. Although I had to baulk at their penalty of £38 if you miss a DD - but obviously there for a reason though. I've pointed this out to her too.

Katie-Kat-Kins

Advise her to get a basic account anyway, if she is struggling with debt the last thing she needs is a shiney new overdraft to tempt her complete with nasty charges.

Do check that she isn't paying a fee for the DMP too, this is really important.

gfplux

Has she had a look here?
http://www.cccs.co.uk/

SusanK_3

KatP wrote: »

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Do check that she isn't paying a fee for the DMP too, this is really important.

Yes, thanks. I have managed to steer her away from the fee paying one (their 7 day cooling off ends tomorrow) so she can get out of it and go to CCCS or Payplan. I already feel a weight off our shoulders as the upfront fee was a lot.

laura2481

SusanK wrote: »

Yes, thanks. I have managed to steer her away from the fee paying one (their 7 day cooling off ends tomorrow) so she can get out of it and go to CCCS or Payplan. I already feel a weight off our shoulders as the upfront fee was a lot.

Phew- that's good news! Make sure she definitely cancels it!
It seems like someone is always trying to make money out of other people- that's the way of the world I'm afraid Hopefully she will be able to pay everything off in less than 6 years with one of the non-fee taking peoples

Tixy

If she has given the fee charging company her dd details or her bank card details it might be worth her checking with the ban that no DD has been set up (or has been cancelled) Also tell her to keep an eye out for a payment being taken.