DMP and cheques (with Pawnbrokers etc)

jamess55

Hi... I am about to enter a DMP with Payplan but have a number of cheques outstanding with various places - eg Moneyshop / H&T Pawnbrokers and a couple of similar places.

My advisor at Payplan says that we should just put those debts onto the balance sheet showing the total debt but I have two questions:

a) The cheques were all guaranteed with a cheque guarantee card, so is Natwest going to honour the cheques even if there are insufficient funds in the account (in which case I'll need to get Natwest added to the DMP); also

b) Is it even likely that a DMP that's going to take approx 30 months will be accepted by a Pawnbroker (or similar) who could simply bank their cheques? Does anyone have any good experiences about that?

Any advice gratefully received. J.

podperson

You can ask the companies if they will agree to a debt management plan but to be honest they tend to be rather unreasonable and as you say they have no incentive to agree when they can simply bank the cheques.
If the cheques have a cheque guarantee card then the bank will generally honour them and take you overdrawn (I say generally, if there is a large number and you have no money in the account then sometimes they class it as 'dodgy' activity and will refuse some). If you haven't done already I would suggest moving bank accounts as otherwise you will be left with nothing in the account. Once the account has gone overdrawn you can look at adding them to your dmp but expect charges on the account.

Fiddlestick

jamess55 wrote: »

a) The cheques were all guaranteed with a cheque guarantee card, so is Natwest going to honour the cheques even if there are insufficient funds in the account

Pretty much.

Best open a new bank account whilst you can.

PNPSUKNET

The bank will have to pay them, you need to be carefull as it can be classed as fraud against the bank