Am I doing anything Illegal?

jayn_3

I am a bit worried as I have opened a Nationwide Flex accout as a safe account whilst I repay my debts. I have 5 creditors and I have had to offer a much reduced monthly payment following advice from CCCS, which have all been agreed for 6 months.

I have been upto date with everything till end July this year. When I realised I was not coping with my monthly payments I lurked about on the boards a bit and realised I would need a new account. I applied just as I was seeking advice and was offered a current account with full facilities (!!!!!) I guess as my credit rating was still OK at that time.

I told Nationwide I did not want an overdraft as I really dont want to go there again, I have learnt the hard way. But having a cheque book would be really handy on the odd occasion.

What I guess I'm asking is am I breaking the law or some code of conduct if I have these facilities even though my credit rating will go down hill from now on?
Id appreciate your advice
Thanks

RAS

You are fine just you must not use the OD facility as that is taking extra credit.

Masses of people on DMP will have a full facility accounts, just as long as they have no CCs or loans with their current account holder.

saltnvinegar

Hi Jayn

As long as you were not deceitful with any information you submitted on your application form then you've done nothing illegal.

SnV

jayn_3

Hi
All the info given on my application was completely honest. I declined the overdraft facility. I doubt if I will ever be offered any credit again in the future and if I was I wouldn't have it.

I really have learnt from this

Thanks for your response tho

X

podperson

Firstly it is not illegal since you are in a dmp which is an informal agreement, the worst that could happen would be that cccs would no longer agree to manage your dmp since you had broke the terms of their agreement by getting additional credit. However since this account doesn't have an overdraft you haven't taken additional credit so even by cccs standards you are fine

stephy110288

hi i have a similar situation...
i have been in a debt management plan for the past year, i'm a full time student about to go into my second year.
when i first started uni i tried to upgrade my basic current account to a student account, so that i would have a visa instead of electron, and the £50 gift, didnt say anythin about an overdraft. anyway i got declined and due to trying to pay off my debts, i worked ALOT while studying an this affected my grades.
its now a year on and all my missed payments have fallen off my credit file and its looking alot better, so i applied again. i was approved and got the overdraft. i told them i have debt and that im in a plan but they were still happy to give it me. i'm going to take it all out an put it in my savings account and use it for emergancies so that i dont feel as much pressure to work a crazy amount of hours.
i'm not breaking the law or doing anythin deceptive am i?? they know my situation

barbiedoll

No, it's not illegal. You passed the credit checks at the time of the application. When OH and I applied for our basic account, we were told that our credit rating was "excellent". Oh, how we laughed!

saltnvinegar

Which shows how much of a joke credit scoring is really.

Different lenders have different scoring criteria so what is 'excellent' to one may only be 'fair' for another.

podperson

Stephy you're not doing anything illegal but if you are in a dmp with someone like cccs then it does specifically say in their agreement that you can't take additional credit while you're with them, which would include an overdraft. If they do find out you may need to set up a new dmp yourself - not saying that will definately happen but just to be aware of.

barbiedoll

Ours was excellent at the time, we hadn't actually missed any payments. We knew we were just about to though!

cath74

Hi
im on a dmp with the help of the cab who advised me to open a new account with a different bank which i did & was offered full facilites including a cheque book although i did decline the overdraft too dont want to get back to that situation. But since then i have actually had a meeting with my bank manager as at 1 point i was considering bankrupcy & explained my full situation to him. but apart from the fact he is obviously running a business he was very helpful & i still have full account faciltes & quite a few standing orders for my creditors so dont worry