Cahoot debt

Tesco_Tom

We have been on a DMP for about 4 years now and are within 12 months of finishing. We have just recieved a letter from the CCCS advising us to change banks from A&L to someone else as we have a debt owing to Cahoot (both are now Santander) and they may reclaim it from our account. Is this really neccessary? Have they done this to other people?

DVardysShadow

Yes, it is necessary. Banks have the right of 'offset', which means that they can take any money you have in an account in credit towards any other debt you have with them.

So, if your current account is in credit, when your pay goes in, they could swipe the lot. Now what I am not sure of is whether there are any transitional arrangements which disallow the right of offset in a case where the bank you are in credit with is taken over by a bank to which you owe money. But you would do well to deal with this on Monday morning - and not let on why.

The other thought which comes to mind is that CCCS must be very much on the ball to tell you about this - I suspect that the reason is that it has already happened to some CCCs customers. If this is the case, you really need to get moving with this.

Angyles

I'm in the process to setting up my DMP with CCCS and as I was too late to get this month's pay into my new bank account they have advised me to wait on sending my current bank the notification letter as I currently have a loan and credit card along with an overdraft with them. CCCS explained the same to me as you, it is possible they will take any money in your account to satisfy the debt.