Closing a Current Account

sortingit

Hi, Can anybody help please? I am nearing making full and final settlements and entrying into into a debit management plan with those who dont accept. I was advised by Payplan to switch bank accounts as my current account is with a bank I owe money to via a credit card and loan. After setting up new accounts and transferring 'priority' direct debits I tried to cancel all direct debits and close the account. However, the bank said I couldnt close the account without first paying off the loan. The concern here is that they are going to use this account to continue collecting payments and charge me their extortionate unauthorized overdraft charges. I cant speak to anybody in the bank about making F&FS settlement until I default..but I'm not going to default if they are raiding my bank account for the money.

Down at the first huddle.

Can anybody give me any advise on this please?

Thanks

GeorgeUK

Bumping

I thought that they could only take available funds but am not sure about this. It wouldn't be offsetting to pay for the loan would it? There would be no funds to offset and they are simply swapping one form of debt for a nother at a higher interest rate.

Might be worth asking nationaldebtline if they woudl be allowed to do this.

Also, if you have not yet defaulted, i think it would be a while before any F&F settlements were accepted.

Consumerist

When you opened the new current account, did you redirect your income to the new account? If you haven't then do so asap.

Once your income is paid into the new account, assuming the account is not with the same bank group as the existing account, then your existing bank will not have access to it.