DMP and Payplan experience?

Jolinar

poppy52 wrote:

I've been in a dmp with Payplan for over a year and I wasn't allowed to have a debit card. I had to open a new account with no links to any of my creditors and no cheque book or debit card. Payplan were very clear about this account having to be a basic account with no frills and no credit check.

I can understand the moving of the account so you have no links with your creditors and no overdraft, no debit card seems a bit excessive though. I'm with CCCS and their criteria are simply, no OD and no credit without their consent. Seems like there is a difference between the DMP companies then, interesting.

Bobby81

I have just ordered myself a pre paid credit card too.

tiggtang

Basically - any form of credit you have (overdraft, debit/credit card) are exactly that ... CREDIT - and as such if you use them when you know you dont have the money to repay the DEBT you are commiting fraud. My advice to anyone who is in a DMP with any company and is confused on this issue, would be to contact their case officer to ask them to clarify. While these forums are really useful to share experiences, the users should not really be offering seemingly good advice when they dont know all the ins and outs. But I would suggest if you want to know exactly what is allowed in a DMP you ask the company concerned. Can guarantee Payplan will tell you that you should disclose all debts to them in any arrangement and not to take out or use any form of credit.

Bobby81

I was told you cant have anything, not worried about that though, just would love some advice from someone who has done this? Payplan are calling me in the morning and i want as much info as possible so i can decide weather to do it or to try another plan, as already discussed on another thread.

frankie1_2

Have re-read the literature from Payplan today.
Credit cards are ok but you cannot use them to incur credit. ( sorry Jolinar)
You may be asked to open a new bank account, especially if you have a significant overdraft or debts with your existing bank. You should not ask for an overdraft with your new bank although mine was happy for me to have an opening overdraft of £2,000 without me asking for this facitility.
I found it impossible to manage the first month without using my new overdraft as I had previously used credit to manage my monthly repayments.
Fortunately after a couple of months I have adjusted to my new spending plans