DMP: Can I have a business account with a personal creditor?

dmo73av

Hi all,

I am set to go on a DMP.

I'm looking to set up a business account with A&L ... but A&L is one of my personal creditors who I owe £5,400 on a CC and £750 on a OD.

Would this be ok would they attempt to lift it from my business account?

Thanks
Dmo

livinginhope

Evening Dmo,I don't really know the answer to this,but my thoughts are,no you can't,when starting out on a DMP the first thing you should do is change your bank account to a different bank than your creditors,I would think this would be the same for business banking.
To be on the safe side,try another bank unconnected to A&L,they can only say no! if they say yes,you know nothing can be taken.
Good luck,sorry I coudn't help more
LIH

sgx.saint

The majority of banks/creditors have in their terms and conditions the right to offset any money elsewhere within the banking group.

So basically, if you have money in one account and owe on another, they have every right to take the money from your account in credit to use it to clear or pay the one in debt.

So, I wouldn't risk it if I was you. I would be looking for another bank that you have no affiliation with.

dmo73av

Hi all,

Thanks for your replies.

I checked with CCCS and they say that is not possible. The reason being that the Ltd Co is independent from myself.

Dmo